By Jeff Harrison
Midwest City Beacon
Insurance rates continue to climb in Oklahoma.
Mid-Del School officials say they’re not immune.
The district saw a $1.3 million increase in total insurance cost for fiscal year 2024 over the current year’s costs. The total cost is $4,680,986.27 for the new year, which is an increase of $1,298,506.27 over FY 2023’s cost of $3,382,480.
The increase in premium is due to rising building values and the cost of property insurance coverage, said Jacqueline Woodard, chief financial officer for Mid-Del Schools.
Woodard told the school board on June 28 that many other districts have been hit by large rate increases but she was hoping Mid-Del could avoid a similar fate.
“Unfortunately, with the spring season we’ve had, everybody has sustained pretty significant losses,” she said.
The district purchased insurance through Lloyds of London, a marketplace of insurers. The coverages are provided by multiple insurance providers. Woodard said the new policy does include additional cyber insurance which the district did not have in the past.
General liability and auto liability are covered by OSIG. Bill Luttrell, insurance agent for the school district, said the company writes 98% of the school policies in the state but has taken heavy losses over the past five years.
“Last month, there was $100 million in damages to OSIG alone,” he said. “Broken Arrow had over $1 million in damages, Shawnee had $35 million, OBU, which is covered by them had close to $100 million.”
The Mid-Del Technology Center’s insurance costs rose by nearly $40,000 to $191,365.50 for FY 2024.
In the past five years, Mid-Del’s insurance costs have more than doubled. The district paid $2.1 million for insurance in FY 2020 and has seen double-digit rate increases every year since.
Board member Ed Daniel thanked Luttrell for his help in shopping insurance.
“It sounds like you did your homework and due diligence,” he said. “It’s just the cost of doing business today.”
The school board unanimously approved purchasing the new policy at the June 28 meeting.