There were two bids for insurance presented to the PCSD No. 1 school board during a work session last week. After hearing the presentation by Terry Sterling about the School Risk Retention Program, Ray Gallegos of HUB International told the board there wasn’t a way he could give better premiums than was presented by his competition.

 “The 2019 claims for hail damage and roof collapse, are coming off this year and that will help [the numbers], but there is no way I can beat that quote,” he said. “I’m not going to waste your time, and I can let you know what I can do, but I think [the SRRP school insurance pool] is offering what you are looking for …You’re talking about longevity and stability. We’ve [been covering your district] since 1999 and never have run into a time you didn’t have coverage.”

Gallegos also said that if they chose the pool insurance and are not happy with it, he is “just down the road in Cheyenne, a phone call away.” He added he’s assisted other districts who wanted to change back to regular insurance. “I do schools and colleges. That’s it. We will always be available, but they (SRRP) are offering what is best [for] the district.”

Pool Insurance

Sterling is the Director of Financial Services for the School Board Association in Wyoming, and Plan Administrator for SRRP. He explained that the SRRP is sponsored by the SBA as a property insurance program for schools. “We are a partially self-funded program that started in 2003 with school districts [that were having their insurance] cancelled.
Now SRRP has 29 members that join forces to experience the benefits [of pool insurance.]”

Some of those members are from all corners of the state, and Sterling encouraged board members to contact the school districts in Park, Crook, Uinta Counties and ask them how they like the SRRP insurance program, as they are similar in size and insurance needs to PCSD No. 1.

Sterling said SRRP takes the premium amount and “puts it into the bank.” From that, funds can be pulled to pay first insurance claims and re-insurance. There are some administration fees, but the district could see a good chunk of the premiums come back in paying potential future claims. 

In the proposal documents, it says, “…Almost 40 percent of a member’s annual contribution is used to pay for claims. If SRRP has favorable losses that policy year, those dollars can be returned to the membership.”

“We put money in the bank, but the pool administers,” Sterling said of the difference between a standard insurance agency and an insurance pool like SRRP. “We have a choice in who the insurance carriers are, and you are not locked into a certain company you have to go through.”

He said PCSD No.1 would have a representative on the SRRP board that administers the insurance coverage. “I’m like a coach: I will not block or tackle … All 29 members get together to say what they want coverage on … Our goal is to find a way to pay claims, not find exclusions and find a way not to cover something.”

Details on the SRRP coverage were explained via Zoom Call by Ryan Doyle, Area Vice President and pool insurance broker for Gallagher, one of the largest insurance brokers in the world. Gallagher is a SRRP-approved third-party vendor. He explained the SRRP has a guaranteed renewal, and in addition to property insurance, includes, first- and third-party liability coverage, crime coverage, extortion, liabilities, equipment breakdown, pollution clean-up and liability, online training modules, and a built-in “walk through” every year to mitigate unnecessary risk factors on-site in the district. After approval, a comprehensive cyber supplement will be added to the insurance package. Among other advantages, there is also a per-occurrence, vs. per-item, deductibles with vehicle and property claims; and an Availability of Claims Advocate to assist if any complications arise during a claim.

“I’m pretty excited because our insurance will be over $100,000 less,” Interim Superintendent John Weigel said. He explained the Board had decided to open bids for the school’s insurance so local agencies would have a chance to bid, and to see if the district could get a better price on insurance.

On Monday, during one of their regularly scheduled meetings, the School Board unanimously approved a motion to accept the insurance bid from SRRP. The new insurance coverage will begin in January.