MT. VERNON — Mt. Vernon Township High School will remain with its current risk management insurance provider for at least another year.
District officials had been exploring the possibility of switching providers, but Superintendent Michael Smith said it would be too risky to take such an action at this time.
The MVTHS Board of Education voted to renew its contract with the current provider, Prairie State Insurance Cooperative, at a board meeting Tuesday night. PSIC provides property/casualty and workmen’s compensation insurance for the district.
“At this point in time, given our claim record, it could present a risk of paying a whole lot higher premiums or even (not)
receiving comparable coverage,” Smith said of leaving PSIC.
In December, the MVTHS Board approved withdrawing from PSIC so bids could be sought from other insurance brokers.
The district was then given a six-week grace period during which it could return to PSIC without having to reapply.
Once the grace period ends, the district would have to go through the entire application process again to return to PSIC, Smith said. By renewing the contract now, MVTHS does not have to reapply.
“We didn’t want to take the chance of not getting back in,” Smith said.
Smith said district officials are generally satisfied with PSIC’s workmen’s compensation rates, but were hoping to find more competitive prices for property/casualty coverage.
Upon researching the current marketplace, Smith said it looks like MVTHS could get competitive quotes for property/casualty, but not for workmen’s compensation.
This presents a problem, because MVTHS can’t stay with PSIC just for workmen’s compensation. The firm requires the district to purchase coverage for both risk management categories, Smith said.
The district’s recent claim history has made it difficult for MVTHS to receive competitive bids for workmen’s compensation.