Oelwein’s school board renewed its EMC liability insurance policies through Vogel Insurance to $ 411,611 for all coverage in a 4-0 vote when it met on Monday. Board member Joe Bahe, the husband of insurance agent Lisa Bahe, abstained.
Total premiums increased by nearly 25% (24.9%) compared to last year’s total premium, $ 320,500, in June 2021.
Superintendent Josh Ann reminded the board that he had allocated $ 415,000 in the state budget to the insurance subgroup of the management fund.
“Not the entire management fund, but that’s what we set aside for insurance,” said Anne.
Of the total number of claims for the last five years, the district has 115 claims, 19 of which for cars.
The board chose option one to increase the deduction for car insurance from $ 1,000 to $ 2,000, which reduced $ 1,946 from the total annual premium.
Vogel insurance spokeswoman Lisa Bahe said reinsurance companies had removed coverage and abuse claims from the general policy and reduced limits. The district could cover such abuse claims by increasing its umbrella by $ 1 million to $ 5 million, which would add $ 1,568 to the line of total premiums for the year.
“You could increase your umbrella from $ 4 million to $ 5 million, which covers abuse and bullying, so I can do a little more coverage for the school district,” she said.
“Jobs, wages (have risen) as well as fashion,” Bahe said. “The model is the claims of work computers that are expected in this school district compared to other school districts.”
It is considered that the modification above one increases the amount of compensation to the worker. The fashion formula is not looking at the previous year, but the previous three, Bahe said.
The district had a 1.06 mod to compensate workers. Most of the school districts Ehn and Rueber spoke to on an earlier call they mentioned had modifications over 1 with one exception. Having a rate below 1 helped the region’s premium, Ruber said.
Ruber attributed the EMC program “Ask a Nurse” to save the area from medical claims. There were 72 lawsuits, 45 medical and $ 0 made. He attributed the employees to calling the nurse’s line and receiving help when they were injured, noting that they had to agree to do so as new hires.
“The property, the cost of replacing the buildings, rose to $ 25 million, and the reconstruction was a huge part of that,” Bahe said.
The only plan option presented on board that would increase umbrella coverage to $ 5 million to cover abuses, listed in board documents as option three, was packaged with a higher asset deduction of $ 10,000.
The area raised its property deduction to $ 5,000 last June, three weeks before a low-class tornado caused more than $ 250,000 in damage to Oelwein High School and Husky Stadium.
“Then the tornado expires three weeks after we increased this deduction, and then we pay 5 bucks out of pocket for the tornado,” Ruber said.
The amount to be deducted is for each event, Anne said when asked on board.
“I would say it’s normal to have a claim or two a year (building) and a claim or two a year by car,” Anne said. “It would not be unreasonable to think that we would have $ 10,000 to $ 15,000 a year in deductible expenses.
Ehn said equipment funds such as the local tax on physical facilities and equipment and the nationwide sales tax could help cover these deductions.
“Apart from $ 5 million for the umbrella, that’s about what we have right now,” Ann said.
Option one increased the automatic deduction. Both had an umbrella for $ 4 million. Both had a lower $ 5,000 deduction for property damage.
Ehn said options three and four are trying to reduce costs by increasing the deduction to $ 10,000 for the property.
“For Michael, it gives him a little annoyance to increase the deduction so much,” said Anne.