The Clinton Herald, Clinton, Iowa

Local News

June 14, 2014

Central schools change insurance carriers

DEWITT — After many years with Employees Mutual Insurance Company of Des Moines through local agent David Deke, the Central Community School Board elected to contract with the Iowa Public School Insurance Program for services.

At its Wednesday meeting, the board passed a resolution for an intergovernmental agreement with other school districts for IPSIP, which is administered through Gallagher Insurance of the Quad-Cities. A savings of about $60,000 a year was the prime motivating factor for the change. The IPSIP cost is $175,654 and covers the worker compensation program as well as property, liability, automobile, etc. The EMC price was $236,358.

While acknowledging the good job that Deke Insurance has done for the district, board member Jim Irwin said the district’s attorneys have looked at the IPSIP proposal and the savings were significant. He noted the EMC safety dividend, which has averaged about $15,000 per year in the last five years, decreases the savings, but it is still substantial.

Board member Jennifer Naeve said there was something to having a local agent, but the account would be turned over to a different insurance agency in a few years. Deke said that insurance agent worked locally.

Board member Steve Fuglsang said he was bothered by the required 3-year contract, but it was the board’s responsibility to consider the savings.

With the recommendation of Superintendent Dan Peterson, who said it came down to a financial decision, all board members concurred the savings were enough to warrant the change, the company’s references were good and there was adequate coverage.

The board approved counting hours rather than days to complete state requirements in the 2014-2015 calendar year. Peterson said there were no changes to the previously approved calendar with 20.5 hours over the mandated 1,080 hours. However, he said, late starts and early dismissals could use some of the hours. Professional development no longer counts for instructional time and make-up days for weather will be completed at the end of the school year.

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