Purdy school officials use savings to increase insurance

Wednesday, December 9, 2015

Board members prefer higher coverage to lower cost

Faced with an opportunity to pay less for liability and catastrophic coverage insurance, the Purdy Board of Education opted to use the savings instead to buy increased coverage.

Superintendent Steven Chancellor reported the premium for insurance through the Missouri United School Insurance Council (MUSIC) totaled $80,003 for the coming year, down from $82,039 last year. Chancellor said the district paid more buying umbrella insurance for up to $5 million in coverage to help with hosting expenses for more events. The coming year's schedule did not have the same commitments.

However, in lieu of the umbrella, MUSIC offered up to $2 million in coverage for an additional $2,092, or $5 million for $3,272.

"In reality you can't have enough insurance," Chancellor said. "You have to weigh what is reasonable. If you add $2 million, you have a good safety net."

"It would be pretty cheap if we needed it," said Randy Henderson, board president. "A million dollars doesn't go as far as it used to."

Seeing the cost balanced out to nearly the same amount as the previous year, board members voted to buy the additional $2 million insurance with the proposed savings, bringing the new premium to $82,095.

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