< Previous | Contents | Next >

23. RISK MANAGEMENT PROGRAMS

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers' compensation, automobile liability, general liability, as well as, medical, behavioral health and prescription plan coverage are being provided on a self-insured basis up to specified limits. The District has entered into agreements with various insurance companies to provide specific excess coverage of claim amounts above the stated amount on an individual claim basis, and aggregate excess coverage when total claims minus specific excess coverage exceeds the loss fund established annually by the District. The District has contracted with an insurance administrator to administer these self-insurance programs, including the processing, investigating, and payment of claims.

Property and casualty coverage is obtained through purchased commercial insurance. The property insurance fund is used to track premiums and any claims expense. In the 2020-2021 fiscal year, property insurance coverage amounts were $100 million for named wind and $140 million excess of wind.

Settled claims resulting from the risks described above have not exceeded commercial insurance coverage in any of the past three fiscal years.

A liability in the amount of $6,935,000 was actuarially determined to cover estimated incurred, but not reported, workers’ compensation, automobile liability and general liability insurance claims payable at June 30, 2021.

The following schedule represents the changes in claims liability for the current and prior fiscal year for the District's self-insurance program:

Life insurance coverage is being provided through purchased commercial insurance with a minimum deductible.

< Previous | Contents | Next >