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
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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.
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ASBO Conference April 23, 2015
WHAT DO YOU THINK OF
WHEN YOU HEAR THE
PHRASE “RISK
MANAGEMENT” ???
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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.
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ASBO Conference April 23, 2015
• Insurance 101
• Governmental Risk
• Risk Management
Copyright © 2015 Associated School Boards of South Dakota.
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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.
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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.
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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.
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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.
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ASBO Conference April 23, 2015
• Insurance 101
• Other Insureds Included
Board Members
Students
Volunteers
Copyright © 2015 Associated School Boards of South Dakota.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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 § 3-22-17.
Copyright © 2015 Associated School Boards of South Dakota.
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ASBO Conference April 23, 2015
PROPERTY and PERSONAL
INJURY LIABILITY
CONSIDERATIONS
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ASBO Conference April 23, 2015
WEIGHT ROOM
Students
Supervision
Orientation
Posted Instructions/Rules
Equipment maintenance
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ASBO Conference April 23, 2015
WEIGHT ROOM
Public
SDCL 13-24-20
Use of school facilities or buses for other
community or commercial purposes—
Liability for damages.
Copyright © 2015 Associated School Boards of South Dakota.
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ASBO Conference April 23, 2015
SDCL 13-24-20
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.
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ASBO Conference April 23, 2015
SDCL 13-24-20
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.
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ASBO Conference April 23, 2
SDCL 13-24-20
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
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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.
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ASBO Conference April 23, 2015
STUDENT INJURIES
• NEGLIGENT SUPERVISION
• CLASSES/SPORTS/FIELD TRIPS/
PLAYGROUND/BUS STOPS
• BULLYING
• SEXUAL HARASSMENT
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ASBO Conference April 23, 2015
• SPECIAL EDUCATION
• § 504
• ADA
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ASBO Conference April 23, 2015
EMPLOYEE MATTERS
• CONTRACT MATTERS
• DISCRIMINATION ISSUES
• WORKER COMPENSATION
Copyright © 2015 Associated School Boards of South Dakota.
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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.
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ASBO Conference April 23, 2015
QUESTIONS ???
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ASBO Conference April 23, 2015
THANK YOU !!!!!

Copyright © 2015 Associated School Boards of South Dakota.
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