2026 Renewal Proposal Considerations.pdf (223 KB)

2026 – 2027 Renewal Considerations Colorado School Districts Self Insurance Pool (CSDSIP) is pleased to present this document in tandem with our CSDSIP Renewal Proposal and Proposal Auto & Property Schedules.

CSDSIP’s 2026 Program

Last year, CSDSIP took advantage of the soft property market, reduced our annual aggregate and obtained lower rates for our property reinsurance (insurance for insurance companies, just like how you purchase insurance to protect your financial stability). Coupled with our strong financial position, this allows us to decrease our Property rates by 18% this year, directly benefiting Members. The median of our building replacement costs this year across our Membership was 6.5% (based on our insurable replacement cost valuation system). We hope that the property market remains soft, which would allow us to minimize or avoid a rate increase next year. The liability market is opposite, in that it continues to harden. Our liability reinsurance rates have increased over 150% in the past two years alone, costs which we are only now starting to pass on to Members. Last year we added two new liability carriers to our reinsurance program, which allowed us to keep our current per Member annual aggregate of $15,000,000. Insurers continue to pull out of Colorado due to large jury awards and the removal of statute of limitations for sexual abuse claims. Those who remain often seek to limit their exposure through high deductibles, lower limits, and restricted coverage. Due to the significant increase in the cost of liability reinsurance, especially for higher $5M and $10M limits, this year we were forced to raise our School Entity Liability rates significantly. The decreased property rates offset the increased SEL rates for most Members, resulting in an overall decrease from last year. The exception is Members with: • Higher School Entity Liability Limits – $5M and $10M in particular • New Exposures or Exposures Exceed Our Projected Changes – Such as Adding a Building Midterm • Low Total Insured Value Your contribution is largely dependent on factors specific to you including changes to your exposures, your losses, your limits, and your deductibles. In February of 2026, our Board of Directors hired Risk Programs Administrators (RPA) to assume the administration, coordination, and operational management of CSDSIP as well as to assume our Executive Director position. Jennifer Darnall is our new Executive Director. The goal of this partnership is to add depth, expertise, and capacity to CSDSIP staff. Our Board retains decision making authority and we remain Member-owned. We are working on our 7/1/26 coverage updates. Currently, we are looking at minor coverage changes with the possibility of coverage enhancements. We will share any coverage changes with our Membership.

What We Need to Bind Coverage

Our Renewal Proposal and Proposal Property & Auto Schedules reflect the changes that you have reported to us. We ask that you review them to ensure their accuracy. 1|Page

Members must bind coverage on or before June 30th to prevent any gaps in coverage. We encourage our Members to bind coverage as soon as possible so that we can send you your Auto ID Cards, Coverage Binder, invoice, and certificates of insurance before June 30th.

Items to Consider as You Review Your Renewal Proposal Property Coverage

The median building replacement cost values this year was an increase of 6.5% across the Membership. Replacement cost values continue to increase due to the rising costs of asphalt, paint, glass, steel, aluminum, copper, diesel and labor. Your building values have been increased to reflect the adjusted replacement cost values. While we do our best to annually update your building values using the median increase noted above, your building and content values are your values and they require your attention and consideration. Should a loss happen, your Total Insured Value (TIV) is the maximum that we will pay per occurrence. We strongly recommend that you consider purchasing higher buildings and content values, so you have enough limit in the event of a covered loss. We understand that your funding is limited, and our Underwriting Team can work with you to create a tailored, multi-year plan to increase your building and/or contents values. It is important that if you have new buildings, additions, or leased buildings that you report these changes to us as soon as possible. Coverage is subject to the terms and provisions of the policy and cannot be backdated. Please carefully review your Proposal Property Schedule to see if you have any locations that are in a Flood Zone A (or anything that starts with an A). Under our Property Coverage, any location in Flood Zone A damaged by flood are excluded unless you have purchased the National Flood Insurance Program (NFIP) coverage. Please reach out to our Underwriting Team if you have any questions about this coverage exclusion.

School Entity Liability (SEL) & Sexual Abuse & Molestation Liability (SAM) Coverages

Our minimum limit for each coverage is $2,000,000 per occurrence. This limit may be inadequate for your exposures or may not fit your willingness to assume your risk above the minimum limit. Consider the following factors when choosing your liability limit: • Sexual Misconduct & Physical Abuse – Both frequency and severity of claims related to sexual misconduct and physical abuse are on the rise within the Membership and across the United States of America. These are often very high-profile claims that generate demands higher than our minimum limit of liability offered. • Federal Civil Rights cause of actions (Title VII, Title IX, and IDEA) – School officials and staff continue to be the subject of these actions which are not capped by the Colorado Governmental Immunity Act (CGIA). Our Underwriting Team can assist you with obtaining quotes for higher limits.

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School Auto Coverage

Please carefully review your Proposal Auto Schedule to ensure that all the autos that you own and lease are on your Auto Schedule. There is no coverage for autos purchased before the policy begins unless they are listed on this Schedule. Review the Schedule for its accuracy and to ensure that you are purchasing the appropriate coverage for each auto. Our minimum limit is $2,000,000 per accident for Auto Liability coverage. This limit may be inadequate for your exposures or may not fit your willingness to assume your risk above the minimum limit. Consider the following factors when choosing your liability limit: • The CGIA damage cap is currently $505,000 per person/ $1,421,000 per occurrence, which arguably will not apply when you are outside of Colorado. If you travel out of the state, we recommend that you review your Auto Liability limits to determine if your limits are enough. Our Underwriting Team can assist you with obtaining quotes for higher limits.

Supplementary Coverage Section

By partnering with other insurance companies, we offer a broad spectrum of supplementary coverages including Primary & Excess Crime; Nuclear, Chemical, Biological, Biochemical Acts of Terrorism (NCBR); Pollution, and Cyber Coverages to complement our core coverage offerings. Except for Primary Crime, the supplementary coverages described below are issued by and insured under insurance policies provided by third-party insurance companies. The insurance companies we partner with, their limits, deductibles, coverage grants, and coverages offered listed in our proposal are subject to change. Our supplementary coverages are designed to address exposures or perils that are not covered or are sublimited in our CSDSIP coverage forms. You must complete the supplementary coverage applications to be considered for the following coverage: • Excess Crime Coverage – Provides coverage for theft of money and securities including sublimited coverage for cyber deception. • Cyber Coverage – Provides coverage for claims reported during the policy period including cyber incident response, digital data recovery, network extortion and cyber liability claims. • Pollution Coverage – Provides coverage for new pollution conditions including pollution legal liability, remediation legal liability and disaster response expenses. The limits that we provide for our supplementary coverages may be inadequate for your exposures or may not fit your willingness to assume risk outside of the coverages that we offer. Consider the following factors which may impact what you want your limit of liability to be: • Crime claims in which through social engineering loss results in Members transferring money to fake bank accounts for trusted providers. • Cyber claims in which Members must pay for costly forensic investigations. • Pollution claims in which Members are responsible for expensive pollution cleanup.

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Cyber

Members who answer “Yes” to all 6 of our Minimum Control Requirements on our Cyber Application will be deemed a “Compliant Member” by our Cyber carrier. Your limits and deductibles are based upon your compliance with these questions. • Compliant Members – Receive $1M limit and a deductible of $25,000 for Members with less than 9,000 students and $50,000 for Members with 9,000 students or more. • Non-Compliant Members – Receive $250,000 limit and a deductible of $50,000 for Members with less than 9,000 students and $100,000 for Members with 9,000 students or more. We cannot change your compliancy status midterm. If you are currently Non-Complaint, if you become Compliant and notify the Underwriting Team but no later than June 29th, we can change your limit and deductible. How can you become a Compliant Member? CSDSIP has partnered with Gallagher Cyber Defence Centre. They offer a collection of tools and services to assist our Members with taking a proactive and continuous approach to managing their cyber risk. This includes access to cyber risk specialists and offensive security technology to help our Members avoid cyber breaches. Please contact our Underwriting Team for their contact information.

Questions?

Please contact our Underwriting Team with any questions.

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