HomeMy WebLinkAboutAM Box Insurance Westlake Academy School Board
Memo
To: Members of the School Board of Westlake Academy
From: Trent Petty, CEO
Subject: Meeting of August 11, 2003
Date: August 6, 2003
ITEM
Consider a Resolution awarding bid on property/casualty insurance to Box Insurance.
RECOMMENDATIONS
Staff recommends approval.
BACKGROUND
When requesting insurance information from our carrier, TML, we were told they would
be able to cover the property owned by the Town and used by the Academy, but could
not cover any other insurance needs related to the Academy such as teacher's liability.
This led the Town to advertise `Request for Bids" on property/casualty insurance for
Westlake Academy. We received one bid from Box Insurance acting as a broker, who
obtained quotes from several carriers for the specific insurance requested.
The total bid of$68,783 included property coverage for the entire Civic Campus as well
as all requested liability, errors and omissions and worker's compensation coverage for
employees and activities related to the Academy.
Upon review of the bid amounts, the Town originally planned to stay with TML for the
insurance coverage of all property owned by the Town and go with Box Insurance for all
other Academy insurance needs. The bid we received from Box Insurance includes all
property and liability coverage in one package that was not separated due to the fact that
the cost to separate the coverage would be impossible to justify. After numerous
conversations with Dustin Parker and Aaron Compton of Box Insurance, we found that it
is nearly impossible to write only liability coverage on charter schools. Box indicated
they had obtained a quote that was made for another charter school (for reference
purposes only)that included only general liability insurance at a cost of$25,000.
In questioning several charter schools, we found their coverage was with The Hartford
Group. When asked, Dustin indicated they went to Hartford first but they would not
insure a start-up school. We contacted Janice Blackmon with Universal Academy in
Flower Mound and she confirmed the $25,000 was a reasonable quote for liability only
for schools. Jay Waddell of TML contacted Marsh, Inc., the largest broker in the world
and was told that they didn't have anyone that would write liability only for less than the
$25,000 quoted above. The quote we received for general liability through the bid totaled
only $650: an approximate savings of going with the combined coverage of $24,350.
We computed the approximate premium on the property coverage for the Civic Campus
using the current TML rate to be $28,417. The premium proposed by Box Insurance for
property coverage is $38,273; a difference of $9,856. Using the previous calculations,
the savings on the liability premium is offset by the larger amount for the building
coverage. This bid amount is based on budgeted amounts at the time the insurance was
advertised. There may be a small change in the quoted amount when actual numbers are
used for final submission to Box Insurance.
Attached is a summary of the premiums as quoted by Box Insurance and a scenario using
TML's rate for the buildings and the $25,000 for general liability as quoted to another
Charter School. As can be seen it is much more feasible to have all the products in one
package as opposed to trying to get separate coverage for liability and property.
In light of the fact we cannot have both the Academy and Town's insurance needs
provided by TML, we recommend the Academy award this bid to Box Insurance.
Attached is information provided by Box Insurance with detail of the coverage proposed.
WESTLAKE ACADEMY
RESOLUTION NO. 03-12
A RESOLUTION OF THE BOARD OF DIRECTORS OF WESTLAKE
ACADEMY AWARDING THE BID ON PROPERTY/CASUALTY INSURANCE
TO BOX INSURANCE.
E IT RESOLVED BY THE BOARD OF DIRECTORS OF THE WESTLAKE
ACADEMY:
SECTION 1: That the Board of Directors of Westlake Academy does hereby
award the bid on property/casualty insurance to Box Insurance.
SECTION 2: That this Resolution shall become effective upon the date of its
passage.
PASSED AND APPROVED ON THIS 11TH DAY OF AUGUST 2003.
ATTEST: Scott Bradley, Chairman
Ginger Crosswy, Secretary Trent O. Petty, Chief Executive Officer
APPROVED AS TO FORM:
L. Stanton Lowry, Attorney
Westlake Academy
Premium Analysis
Insurance
Buildings
Contents
Commercial Crime Coverage
Inland Marine(Electronic Equipment and Valuable
Papers)
Equipment Breakdown
General Liabilty(|nc|udinQ Educators Professional &
Hired/Non-Owned)
Employee Benefits Liability
Umbrella
School Leaders' E&{)
Workers' Compensation
Box Insurance
Quote
$38.273
$3,039
$2,018
$2,791
$913
$65
$3'O00
$8.589
$9,210
TML Scenario
$28,417 A
$2.
--, _
$913
$25 B
$3,000
A This amount represents the same amount of coverage using TML's rates �
B This is an amount quoted to another charter school our size for general liability only (not included in a package)