Broad coverage and proactive loss
School districts face many common concerns when it comes to the operation of a large fleet of buses and vehicles. SISC affords coverage to our member districts for owned, hired, borrowed and non-owned autos subject to the terms and conditions of the Memorandum of Coverage. Some of the common exposures dealt with within the SISC II pool are:
SISC II affords coverage to our member agencies for losses associated with boiler and machinery operations. Losses of this type relate to equipment breakdown. These losses are very specialized, and SISC II provides coverage through the commercial market. Boiler and Machinery coverage, or equipment breakdown insurance, pays for losses resulting from the accidental breakdown of equipment that operates under pressure or that controls, transmits, transforms, or uses mechanical or electrical power. The SISC II Property Memorandum of Coverage excludes coverage for losses relating to electrical, mechanical breakdown and steam boiler explosion. Our Boiler and Machinery coverage provided by a commercial carrier fills that gap.
Member agencies are afforded coverage for crime and fidelity losses through the commercial market on a group purchase basis through the SISC II pool. Coverage is provided for employee theft, forgery (the signing of the name of another person or organization with the intent to deceive) or alteration, theft of money and securities (negotiable and nonnegotiable instruments or contracts representing either money or property such as tokens and tickets), robbery or safe burglary, computer fraud, funds transfer fraud and money orders and counterfeit money. Typically, member agencies are faced with theft losses related to stolen funds often times associated with student run organizations. All losses are reported directly to SISC II and staff coordinates the adjustment of the loss with the commercial carrier.
SISC II affords a wide range of coverage for the exposures school districts typically face from the normal operations of their organizations. Some of these coverages include, but are not limited to:
Coverage is afforded to our member districts on a per occurrence basis. Those considered to be covered parties include the member and the member’s agencies, educational foundations by endorsement, employees (including volunteers) and those entities or individuals the member is obligated to provide coverage for by way of written contract.
Our errors and omissions coverage encompasses coverage for those acts by an employee of the member agency deemed to be a neglect or breach of duty and not resulting in bodily injury, property damage, personal injury or employment practices liability.
Employment Practices Liability coverage is also afforded under the SISC II Memorandum of Coverage. Any claim alleging wrongful dismissal, discharge or termination, harassment, discrimination, retaliation and defamation all have the potential for being an employment practices liability exposure. SISC II makes every effort to coordinate and investigate these claims promptly as often times these cases present complicated coverage as well as factual issues. SISC frequently, on claims having merit, works in conjunction with the involved member district to fashion settlements that may involve a contribution from the member district in order to minimize the impact of an uncovered exposure.
Defense costs and indemnity costs are erosive of the self-insured retention. While SISC affords coverage considered broad and inclusive of exposures typically faced by our member districts, SISC cannot afford coverage for damages resulting from willful or intentional acts or intentional acts or omissions for which insurance coverage would be precluded under Insurance Code Section 533.
Student Accident Coverage is a special coverage afforded under the Liability Memorandum of Coverage. This section of the Memorandum provides a benefit to regularly enrolled students who may be injured and require immediate medical and surgical relief for bodily injury resulting from an accident. In most instances the student must be on the school grounds, at contracted facilities, on school transportation or participating in school-time or interscholastic athletics (with the exception of tackle football) for coverage to be triggered. Coverage is provided for reasonable and customary medical services and supplies and is applicable for up to 52 weeks from the date of the accident. Payment is made for expenses that exceed the limit of, are less than the deductible of or are simply not covered by other insurance available to the student.
School Connected Organizations and Educational Foundations coverage is a coverage offered by SISC and underwritten through USLI (the United States Liability Insurance Company). Our members can have their booster clubs and/or foundations purchase liability coverage at a reasonable cost from this highly rated and successful insurer. The coverage has no deductible and includes abuse and molestation coverage. There is an option for purchase of D & O (Directors and Officers) coverage should one of your school connected organizations choose to do so.
In addition to the coverage afforded to our member districts through the SISC II pool, there is additional coverage applicable to auto and liability exposures through the commercial market well above the self-insured retained limit. All claims having the potential of exceeding the retained limit of coverage are reported to the excess insurer for consideration and review. SISC works closely with our excess insurers to make certain the claims handling process is coordinated and effective.
Coverage is provided to our member agencies for the member agencies interest in covered property. The coverage applies to both real and personal property, including the personal property of others subject to terms and conditions of the Property Memorandum of Coverage. The perils covered under the Memorandum are for all risks of direct physical loss or damage subject to the exclusions contained within the Memorandum. Coverage for loss from business interruption and/or loss of rental income is included as well. Property in the course of construction is covered provided the member agency reports the addition of newly acquired property within 60 days of acquisition. Certain limitations apply and are listed in the Memorandum of Coverage.
As is the case with auto and liability coverages SISC II also provides coverage in excess of the pools self-insured retained limit. This added protection is well in excess of the pool’s retained limit. SISC II promptly reports all claims that have the potential of exceeding the retained limit to the excess insurer for their consideration.
Upon receipt of a Request for Due Process Hearing, those member agencies that have purchased the SISC II Special Voluntary Coverage Program (SEVCP) become eligible for reimbursement of legal fees and costs associated with the Request. This completely voluntary coverage program, which is self-administered by SISC II staff, will pay up to an aggregated limit for legal fees and costs incurred during each fiscal year. Legal fees are subject to an hourly cap under the program.
The SISC II tackle football coverage program pays up to a specified amount for covered medical expenses due to accidental bodily injury sustained in any one accident which occurs on or after the effective date of coverage. This also is a voluntary coverage offered by SISC II which is self-administered by SISC II staff. This coverage is for students who are participating in a regularly scheduled and school sponsored tackle football game or traveling as a team member on school transportation to or from games not on the school grounds.