Agenda Item No._________
Washburn University Board of Regents
SUBJECT: Renewal of Insurance Policies
DESCRIPTION:
The renewal date for ten of the University's insurance policies is January. An additional policy, comprehensive blanket fidelity bond coverage, began the third year of a three year policy on November 12, but is included in this report to reflect the premium obligation. This policy is Item 10 of the attached Schedule of Proposed Insurance Coverage. Item 6 of the Schedule summarizes the Worker's Compensation policy information. This is the only policy which will be provided by a company different from the current year and the change is being made because of more favorable pricing. The other nine policies are various property and liability coverages.
A firm price has not yet been received for the renewal of the aviation liability insurance.
FINANCIAL IMPLICATIONS:
| 1999 2000 | 2000 2001 | |
| General Fund | $165,943 | $192,553 |
| Tort Fund* | $118,000** | $113,207 |
| Total | $283,943 | $305,760 |
*Premiums do not include aviation liability insurance premium which is expected to remain stable at $4,500.
**Last year's Tort Fund premium does not include the one-time prior acts premium of $37,738.
RECOMMENDATION:
President Farley recommends approval to purchase the policies as shown on the attached Schedule.
_________________ ___________________________
Date Jerry B. Farley, President
| SCHEDULE OF PROPOSED INSURANCE COVERAGE FOR 2000 AND COMPARISONS WITH 1999 | |||||||
| Renewal Date for Policies is January 1, 2000* | |||||||
| 1999 | 2000 | 1999 PREMIUMS | 2000 PROPOSED PREMIUMS | % CHANGE FROM 1999 PREMIUMS | |||
| 1 | Package Policy - Royal Insurance Company | ||||||
| Property Coverage Limit | $126,252,232 | $129,261,039 | $46,551 | $48,609 | 4.4% | ||
| Deductible | $25,000 | Same | |||||
| Comprehensive General Liability | |||||||
| Bodily Injury | $1,000,000/2,000,000 | Same | $25,154 | $18,612 | -34.2% | ||
| Property Damage | $1,000,000/2,000,000 | Same | |||||
| Personal Injury | $1,000,000/2,000,000 | Same | |||||
| Earthquake | |||||||
| Per Occurrence | $25,000,000 | Same | |||||
| Aggregate | $25,000,000 | Same | |||||
| Deductible | $25,000 | Same | |||||
| TOTAL ONE YEAR PREMIUM THIS POLICY | $71,705 | $67,221 | -6.2% | ||||
| 2 | Excess Indemnity Policy (Umbrella) - Chubb Insurance Company | ||||||
| Excess of Base Limits of Liability Sections of Comprehensive General Liability Which Includes Auto Liability | |||||||
| Limits of Liability | $5,000,000 | Same | $15,727 | $16,250 | 3.3% | ||
| 3 | Auto Liability/Comprehensive/Collision - Royal Insurance Company | ||||||
| Limits of Liability | $13,071 | $13,477 | 3.1% | ||||
| *Per Accident | $1,000,000 | Same | |||||
| *Property Damage | $1,000,000 | Same | |||||
| Medical Payments | $5,000 | Same | |||||
| Uninsured Motorist | $1,000,000 | Same | |||||
| Comprehensive/Collision | Per Schedule | Per Schedule | $4,997 | $5,786 | 15.8% | ||
| TOTAL ONE YEAR PREMIUM THIS POLICY | $18,068 | $19,263 | 6.6% | ||||
| *Combined Single Limit | |||||||
| *Item 10 is an exception | |||||||
| 1999 | 2000 | 1999 PREMIUMS | 2000 PROPOSED PREMIUMS | % CHANGE FROM 1999 PREMIUMS | |||
| 4 | Non-Owned Aircraft Liability - Insurance Co. of North America | ||||||
| Limit of Liability | $5,000,000 | Same | $4,500 | $ | % | ||
| 5 | Boiler Machinery Policy - Hartford Steam Boiler | ||||||
| The limit has been increased in recognition of value of property. This limit has not been increased in over 15 years. | |||||||
| Limits Per Accident | $5,250,000 | $10,250,000 | $6,170 | $7,185 | 16.5% | ||
| Expediting Expense Limit | $10,000 | Same | |||||
| Water Damage/Ammonia Contamination | $25,000 | Same | |||||
| Deductible | $1,000 | Same | |||||
| Extra Expense Coverage | $250,000 | Same | |||||
| 6 | Workers Compensation - Superior National Insurance Company | ||||||
| Coverages are to remain the same as for 1999. Increases in payroll and rates account for premium increase. | |||||||
| Payroll Amounts | |||||||
| Professional Employees | |||||||
| Teachers & Clerical | $25,800,000 | $25,500,000 | $96,710 | $119,588 | 23.6% | ||
| All Other Employees | $2,200,000 | $3,080,000 | |||||
| Radio or TV Broadcasting | |||||||
| Professional & Other | $920,000 | $1,286,000 | |||||
| Security/Police | $400,000 | $425,000 | |||||
| Total | $29,320,000 | $30,291,000 | |||||
| 7 | Fine Arts Floater - St. Paul Insurance | ||||||
| Limit Per Schedule | $3,589,455 | $3,298,965 | $6,068 | $5,938 | -2.9% | ||
| 8 | Educator Legal Liability - United Educators Risk Retention Group | ||||||
| Limits of Liability | $1,000,000 Per Incident | Same | $28,620 | $28,620 | 0.0% | ||
| $1,000,000 Aggregate | |||||||
| Deductibles | |||||||
| Discrimination, Hiring and Firing | $75,000 Per Claim | Same | |||||
| Other | $75,000 Per Claim | Same | |||||
| 1999 | 2000 | 1999 PREMIUMS | 2000 PROPOSED PREMIUMS | % CHANGE FROM 1999 PREMIUMS | |||
| 9 | Student Professional Liability Policy - Maginnis & Associates | ||||||
| The prior acts coverage is still applicable, but only a one time premium payment was required | |||||||
| Limit of Liability | $1,000,000 Per Person | Same | $16,143 | $16,143 | 0.0% | ||
| $3,000,000 Aggregate | Same | ||||||
| Deductibles | $25,000 Per Person | Same | |||||
| $100,000/300,000 Per Incident | |||||||
| Prior Acts | $37,738 | 0 | N/A | ||||
| TOTAL ONE YEAR PREMIUM THIS POLICY | $53,881 | $16,143 | 0.0% | ||||
| 10 | Comprehensive Blanket Fidelity Bond - Hartford Insurance | ||||||
| Renewed 11-12-97 for a three year period. Cost of this policy is shared with Washburn Endowment Association and the Law Foundation. | |||||||
| Limits: | |||||||
| Employee Dishonesty | $2,000,000 | Same | $1,637 | $1,637 | 0.0% | ||
| Inside Premises | $810,000 | Same | $2,484 | $2,484 | 0.0% | ||
| Outside Premises | $720,000 | Same | Included | Included | 0.0% | ||
| Forgery | $500,000 | Same | $350 | $350 | 0.0% | ||
| Safe Deposit Boxes | $10,000 | Same | $6 | $6 | 0.0% | ||
| Computer & Elec. Transfer Fraud | $1,000,000 | Same | $970 | $970 | 0.0% | ||
| Total for University | $5,447 | $5,447 | 0.0% | ||||
| Total Including WEA/Law Foundation | $6,008 | $6,008 | 0.0% | ||||
| 11 | Security Guard Liability - Scottsdale Insurance | ||||||
| Limit of Liability | $2,000,000 | Same | $19,285 | $20,105 | -4.3% | ||
| Total General Fund | Tort Claim Fund | Total Both Funds | |||||
| Orders to Be Issued To: | |||||||
| 01-72067 | 01-75082 | 01-70066 | 07-75630 | Total | |||
| Topeka Insurers, LLC | |||||||
| $67,518 | $119,588 | $5,447 | $192,553 | $113,207 | $305,760 | ||
Last Updated on 1/25/2000
By Sue Palmer
Email: pdskp@washburn.edu