6530 Insurance

All insurance programs of the district shall be managed as part of the district’s risk management program.
 
Liability Insurance
The district shall maintain sufficient liability insurance to protect it against claims for the negligent or wrongful acts of its staff or agents. The amount and terms of such insurance protection shall be reviewed annually as part of the district's risk management program.
 
The Board shall hold individual Board members, administrators, staff, or agents of the district harmless and defend them from any financial loss, including reasonable attorneys' fees, arising out of any act or failure to act, provided that at the time of the act or omission complained of the individual so indemnified was acting within the scope of his/her responsibilities or employment and in compliance with the policies and procedures of the district.
 
The district shall provide its staff with insurance protection while they are engaged in the maintenance of order and discipline and in the protection of students, other staff, and property. Such insurance protection must include liability insurance covering injury to persons and property and insurance protecting staff from loss or damage of their personal property incurred while so engaged, within the limits described in Policy 6540: School District’s Responsibility for Privately-Owned Property.
 
A member of the Board of Directors or the superintendent is immune from civil liability for damages for any discretionary decision or failure to make a discretionary decision within his or her official capacity, but liability shall remain on the district for the tortious conduct of the Board members and superintendent. The superintendent shall obtain errors and omissions insurance in the amounts deemed necessary by the Board.
 
Property Damage Insurance
The district shall maintain a comprehensive insurance program which shall provide adequate coverage, as determined by the Board, in the event of loss or damage to school buildings and/or equipment, including motor vehicles.
 
Staff Insurance
The district shall develop and maintain an effective program of insurance for its staff. Such programs may include, but are not limited to, unemployment compensation, industrial accident and/or injury insurance, liability, and medical insurance.
 
The district may make available liability, life, health, health care, accident, disability, or salary protection insurance, or any one of or a combination of these types of insurance and may contribute all or part of the cost of such insurance.
 
Unemployment Insurance
The district shall participate in the program lawfully available for fulfilling its unemployment insurance obligation that is most financially and administratively efficient. Staff eligible under the terms of the unemployment compensation pool agreement with the educational service district shall be provided with the unemployment benefits to which they are entitled. The district shall maintain the records required by the state employment security department and retain them for not less than four years.
 
Workers' Compensation
Franklin Pierce Schools is self-insured through the Puget Sound Workers’ Compensation Trust for the purpose of providing industrial insurance benefits to employees who sustain job-related injuries or occupational diseases. This trust has been approved by the Washington State Department of Labor and Industries to administer industrial insurance benefits. Employees of a self-insured business have the same rights and responsibilities as other workers insured through the State of Washington. Employees are protected in two ways:
A. Medical costs resulting from job-related injuries or diseases are paid under the claim; and
B. Injured employees are paid a partial wage replacement while off work due to a job-related injury or disease under the claim when certified off work by their doctor.
When an employee is injured on the job and is unable to perform his or her duties as a result of an on-the-job injury or occupational disease and is certified off work by a doctor, the employee may elect to use leave as follows (provided the employer does not elect to keep the employee on full salary through means other than use of accrued leave):
A. Choose unpaid leave, thus receiving only his or her entitled temporary total disability (TTD) benefits; or
B. Elect to use a full day of accumulated leave (sick, annual, or other similar benefit) in addition to their entitled TTD benefits; or
C. Elect to use a proportionate share of accumulated leave to make up the difference between the workers’ compensation payments and the employee’s regular pay at the time of injury.
The superintendent or designee will develop procedures to assure the legal administration of workers’ compensation benefits.
 
Medical Insurance
Medical plans are offered in the district on a payroll deduction plan. Staff may select from among those plans which are made available by the district's approval. The district shall make a contribution toward approved insurance premiums for each full-time staff member each month in an amount which is determined each year. The district may provide prorated contributions toward premiums for less than full-time staff. In the event of any fully-funded legislative changes for payment of insurance premiums, such funds shall be provided automatically as additional contributions.
 
When a staff member is on leave and the staff member's accumulated paid leave has been exhausted, the district shall notify the staff member that the medical insurance benefits are exhausted and the premium is due. The district shall accept the premium from the staff member and remit it to the carrier each month during the term of an approved leave of absence.
 
In compliance with COBRA (Consolidated Omnibus Budget Reconciliation Act), the district will offer continuing health care coverage on a self-pay basis to staff members and their dependents following termination (for reasons other than gross misconduct), a reduction in hours, retirement, death, or loss of coverage eligibility to the dependent. These health benefits will be identical to the coverages offered to full-time staff members. For terminated or reduced-hour staff members, the coverage may last up to 18 months or until they become eligible for other health insurance, whichever is earlier. In the event of the staff member’s retirement, divorce, separation, death, or loss of dependent eligibility, the coverage may last up to 36 months for the staff member and/or qualified beneficiary. The full policy premium plus a 2% administration fee will be paid by the staff member or the beneficiary to the district.
 
Legal Reference:
RCW 28A.320.060 Officers, employees or agents of school districts or educational service districts, insurance to protect and hold personally harmless
RCW 28A.320.100 Actions against officers, employees or agents of school districts and educational service districts —  Defense, costs, fees — Payment of obligation
RCW 28A.335.010 School buildings, maintenance, furnishing and insuring
RCW 28A.400.350 Liability, life, health, health care,accident, disability and salary insurance authorized — Premiums
RCW 28A.400.370 Mandatory insurance protection for employees
RCW 4.24.470 Liability of officials and members of governing body of public agency
RCW 4.96.010 Tortious conduct of political sub-division — Liability for damages
RCW 41.50.160 Restoration of withdrawn contributions by annual installment
RCW 50.20.050 Disqualification for leaving work voluntarily without good cause
RCW 50.44.030(3) Insurance pools
RCW 50.44.050 Benefits payable, terms and conditions
RCW 51.32.090 Temporary total disability — Partial restoration of earning power — Return to available work — When employer continues wages — Limitations
29 U.S.C. A §§ 1161-1168 Consolidated Omnibus Budget Reconciliation Act
WAC 296-15 Worker's compensation self-insurance rules and regulations
 
Adoption Date: 2/10/87
Franklin Pierce Schools
Revised: 12/9/08; 9/14/10
Classification: Priority