Associated School Boards of South Dakota SCHOOL DISTRICT PROPERTY AND LIABILITY INSURANCE ISSUES ASBO Conference April 23, 2015 Copyright © 2015 Associated School Boards of South Dakota. All rights reserved.

ASBO Conference April 23, 2015 Matt Flett- Director of Protective Trust Services Gerry Kaufman- Director of Policy and Legal Services Ken Bridger -Risk Manager Copyright © 2015 Associated School Boards of South Dakota. All rights reserved.

ASBO Conference April 23, 2015 WHAT DO YOU THINK OF WHEN YOU HEAR THE PHRASE “SCHOOL DISTRICT PROPERTY AND LIABILITY INSURANCE ISSUES” ?? Copyright © 2015 Associated School Boards of South Dakota. All rights reserved.

ASBO Conference April 23, 2015 WHAT DO YOU THINK OF WHEN YOU HEAR THE PHRASE “RISK MANAGEMENT” ??? Copyright © 2015 Associated School Boards of South Dakota. All rights reserved.

ASBO Conference April 23, 2015 SO WHAT DO YOU WANT TO HEAR ABOUT ??? WHAT QUESTIONS DO YOU HAVE ??? Copyright © 2015 Associated School Boards of South Dakota. All rights reserved.

ASBO Conference April 23, 2015 Insurance 101 Governmental Risk Risk Management Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101  A contractual relationship that exists when one party (the insurer) for a consideration (premium) agrees to reimburse another party (the insured) for loss to a specified subject (the risk) caused by designated contingencies (hazards or perils). Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101  Definition of Insured Needs to be broad so it covers:  District and its employees / student teachers  Elected / appointed officials  Sponsored / endorsed organizations  Volunteers who do work at your direction on behalf of the District  Open Peril vs. Named Peril Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101  Types of coverages Property  Buildings (Replacement Cost vs. ACV) »Coinsurance?  Contents  Extra Expense  Auto Physical Damage (ACV)  Inland Marine  Builder’s Risk Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101  Types of coverages Crime Coverage  Employee Dishonesty »Per Occurrence Limit? »Per Loss?  Forgery  Theft Inside the Premises  Theft Outside the Premises Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101 Other Insureds Included  Board Members  Students  Volunteers Copyright © 2015 Associated School Boards of South Dakota. All rights reserved.

ASBO Conference April 23, 2015 Insurance 101  Types of coverages Boiler & Machinery Coverage (Equipment Breakdown)  Boilers  Air Conditioning Units  Coolers & Freezers  Extra Expense Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101  Types of coverages Liability (Casualty) Coverage  General Liability  Auto Liability  Employee Benefits Liability  School Board Legal  Excess vs. Umbrella Liability Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101  Types of coverages General Liability  Limits are seen as $X million per occurrence and $X million yearly aggregate  Bodily Injury/Property Damage  Sexual Molestation  Auto Liability Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101 Claims adjusters perform investigation to determine liability according to the coverage document. Liability is not always automatic. Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101  Types of coverages School Board Legal Liability  Claims Made Basis  Covered Perils: »Employment practices liability »Discrimination / Harassment »Wrongful Termination »IDEA Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101…Excess Limits: Excess Limits is our term for coverage above our standard limits. Example: -General Liability $2 million per occurrence with unlimited aggregate (ASBSD example) -District can elected excess limits above $2 million per occurrence with unlimited aggregate -Assume additional $2 million election. District now has $2 excess $2 for $4 million limit per occurrence with unlimited aggregate -Extends over all other liability coverages Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101: Umbrella coverage Example: -General Liability $1 million per occurrence with $3 million aggregate (commercial carrier) -District has “umbrella” of $1 million so now they have $2 million per occurrence with $3 million aggregate -Extends over all other liability coverages Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101  Other Coverages Medical Professional Liability  Nurses, OTs, PTs Tenant User Liability Program (TULIP) Earthquake Pollution Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Insurance 101  Know your policies Claims Made vs. Occurrence Made Policy  Claims Made Policy (Retro-Coverage) »School Board Legal (Errors & Omissions) »Crime Coverage  Occurrence Policy »Property / General Liability »Auto Liability Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 Governmental Risk  Vastly different from your personal insurance Large buildings, busses, students, staff  What deductibles are prudent for school districts? Somewhat self-insure yourself with deductibles  Policy Limits?  How can we stop claims before they happen?  Get away from mindset “oh we have insurance for that” Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 WAIVER OF IMMUNITY SDCL 21-32A-1. Waiver of sovereign immunity to extent of risk sharing pool or insurance coverage. Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 SDCL 21-32A-1. To the extent that any public entity, other than the state, participates in a risk sharing pool or purchases liability insurance and to the extent that coverage is afforded thereunder, the public entity shall be deemed to have waived the common law doctrine of sovereign immunity and shall be deemed to have consented to suit in the same manner that any other party may be sued. The waiver contained in this section and §§ 21-32A-2 and 21-32A-3 is subject to the provisions of § Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 PROPERTY and PERSONAL INJURY LIABILITY CONSIDERATIONS Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 WEIGHT ROOM  Students  Supervision  Orientation  Posted Instructions/Rules  Equipment maintenance Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 WEIGHT ROOM  Public  SDCL  Use of school facilities or buses for other community or commercial purposes— Liability for damages. Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 SDCL The school board may grant the use of school facilities, computers, motor vehicles, or land belonging to the school district for any purposes which it considers advisable as a community service for such compensation as it determines…. The use may not interfere with school activities. Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 SDCL Any person or persons or public body using such school facilities, computers, motor vehicles, or land is responsible to the school district for any and all damages that may be caused by reason of the use or occupancy. Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2 SDCL The school district is not liable for any damages which might arise as the result of such use or occupancy, including the use of school computers by students. Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 FACILITY USE POLICY USE OF WEIGHT ROOM—ASBSD SAMPLE WAIVER AND RELEASE Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 PLAYGROUNDS Playground Inspection Report  Ground Hazards  Surfacing  Equipment Playground Inspection Report used by permission from Educational Service District 112, Vancouver, Washington Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 ICE/SNOW REMOVAL CHECKLIST  Pre-Season Procedures  Establish a plan  Records snow and ice removal  Complete incident/accident report  Photograph Snow and Ice Removal Checklist used by permission from Schifman, Remley & Associates, Inc., Mission, Kansas Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 STUDENT INJURIES NEGLIGENT SUPERVISION CLASSES/SPORTS/FIELD TRIPS/ PLAYGROUND/BUS STOPS BULLYING SEXUAL HARASSMENT Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 SPECIAL EDUCATION § 504 ADA Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 EMPLOYEE MATTERS CONTRACT MATTERS DISCRIMINATION ISSUES WORKER COMPENSATION Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 SCHOOL BOARDS SIGNIFICANCE OF HAVING GOOD POLICIES AND FOLLOWING THEM OPEN MEETINGS & EXECUTIVE SESSION (agendas, motions and minutes) Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 QUESTIONS ??? Copyright © 2015 Associated School Boards of South Dakota. All rights reserved

ASBO Conference April 23, 2015 THANK YOU !!!!! Copyright © 2015 Associated School Boards of South Dakota. All rights reserved