School trustees to pick insurance carrier

Seymour school board trustees will choose an insurance company to provide package insurance to the corporation during a special meeting at 6 p.m. today at the administration building.

During the Aug. 10 regular meeting, John Beatty of Beatty Insurance in Seymour provided trustees with information on premiums and other details from various insurance providers, helping the board narrow its decision to two carriers: Indiana Insurance and Cincinnati Insurance.

The school district has used Cincinnati for the past eight years for its package insurance, which includes property, casualty, liability, auto and worker’s comp. Before that it used Indiana.

Business manager Nancy Lumley explained there is little difference between the two companies when it comes to premiums and that both “bring a lot of valuable experience to the table.”

Indiana Insurance’s premium quote of $187,661 with a $75,000 deductible was slightly less than Cincinnati’s bid of $192,181 and included building appraisals at no cost. However, Cincinnati offers flood coverage to all school buildings while Indiana does not.

In the past, the corporation has chosen not to invest in flood coverage because of the additional cost.

Trustee Max Klosterman has said he is in favor of having flood coverage because of past flooding near Cortland Elementary School and Seymour High School.

Regardless of which company the board chooses, Lumley said the corporation stands to save at least $20,000 as its current premium with Cincinnati is $213,182.

Another question that came up during the Aug. 10 meeting was whether the corporation is insured for fundraising activities such as car washes and 5K runs conducted by parents groups.

Beatty said all “school-sanctioned” events are covered under most insurance liability policies. Parents clubs are separate, however, and would need the board’s approval for such events.

Trustee Dave McIntire said if that was the case, then all fundraising events would have to be approved ahead of time by the board.

Nancy Franke, the corporation’s newest trustee, said the board needs to revisit its fundraising policy as it works to update all policies.

On the advice of both insurance companies, the corporation is also looking at establishing a safety committee for employees to review and promote safety practices and procedures and recommend polices and guidelines that improve the safety environment of the schools.

Some trustees thought such a committee already existed; however, Superintendent Teran Armstrong said she was unable to find anything on the books. The board will vote on the safety committee tonight.

Also during tonight’s special meeting, the board will vote to advertise the corporation’s proposed 2011 budgets.