KCS, county schools working together on saving money on insurance

Posted: Thursday, September 17, 2009 1:15 am | Updated: 11:52 pm, Wed Sep 16, 2009.

By Peter Adelsen staff reporter padelsen@kokomoperspective.com | 0 comments

Posted on September 17, 2009

Howard County school corporations could save a combined $190,000 with their new property and casualty insurance provider and will receive more coverage. Also taxpayers would pay less to the schools from $1.2 million to $864,000.

The Kokomo-Center Township Schools' Board of Trustees approved a one-year agreement with an automatic second-year renewal with Indiana Insurance Co. on Wednesday to provide its property and casualty insurance. The second year relies on if all the districts can maintain a 40 percent loss ratio.

Three years ago, the five Howard County school corporations began working together to save taxpayer money by requesting quotes through Miles and Finch agency. Hanover Insurance Co. previously held a three-year agreement with the schools before it ran out. Miles and Finch sent proposal packages to 13 different companies.

The five Howard County school corporations recommended that the entire insurance package be placed with Indiana Insurance because it offered the best overall package and the lowest overall cost, said Eric Rody, director of business affairs and treasurer.

"We had in our favor the fact that Indiana Insurance lost us three years ago in the same process," Rody said. "They wanted us back. They wanted the entire county back."

The total cost for the entire package will cost $468,151 effective Oct. 1, he said. For budget purposes in the 2009 budget, the district budgeted $534,000 in the general fund and $38,000 in the transportation fund for a total of $572,000, he said. With the renewal quote and adjustment, Kokomo Center Schools will save $103,849 in the budget, he said.

"Three years ago, we did this same process and we cut the overall Howard County school insurance cost from $1.2 million to $1 million," Mike Miles of Miles and Finch said. "Now three years later, we have now cut that cost from $1 million to about $1,052,000 over the three year period due to additional buildings being built and buses causing a variety of increased risk."

So far by the school districts working as a group, taxpayers have saved nearly $800,000 and by the end of this two-year policy it could be $1 million saved, said Miles.

The board also approved to increase the limit of liability from $5 million to $10 million.

In other news

The board approved the acceptance of the Indiana's Ready to Learn, Ready Schools Initiative Grant 2009 of $11,640 and all Kokomo-Center Schools may be served through the grant.

It also approved permission to advertise on Sept. 24 and Oct. 1 the disposal of personal property and auction sale on Oct. 8 at 4 p.m. at the former vocational building at Central Middle School, 303 E. Superior St.

The board approved the technology plan for 2010-2013.

The board also approved preschool special education contracts for 2009-2010 with Bona Vista Special Education Preschool Therapy services, Keys for Kids Preschool and First Presbyterian Little School.

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