Boyle schools exploring novel self-insurance plan

March 19, 2004|GARY MOYERS

Boyle County Board of Education is taking a look at going into the insurance business.

Rick Dear, the district's financial officer, presented a proposal to the board Thursday night through which the district, in conjunction with seven other districts in the state, would study the formation of a consortium to self-insure themselves for fleet, property and professional liability policies.

"Insurance rates keep going up and up and up, and there's no end in sight," said Dear. "Every school in the state is looking hard at ways to be more efficient in budgeting, and one of the big X factors is insurance."

Dear merely solicited the board's permission to further investigate the premise, but said he would like to move fast on the fact-finding portion.


"If this is feasible, and I emphasize the word if, we'd need to put it in place by the July 1 beginning of our fiscal year," he said.

Dear said the idea has not been tried in Kentucky but has met with success in other states. Under the plan, districts would pool their funds normally budgeted for those types of insurance to create a self-insurance pool, and Boyle County would only participate with other districts that have similar accident rates, which he called low.

"We would be restrictive to districts with proven track records for safety and for proactive measures," he said. "Frankly, the big unknown in the equation is whether or not we would have the expertise in our system or one of our partner systems to run a program like this."

He said the self-insurance pool would not include workman's compensation and student-athlete insurance.

Dear requested and received permission to work with Palmer and Clay School Insurance Co. for an assessment study, which would be done at no cost to the system.

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