Accounting Procedures Handbook

22 INSURANCE PROGRAM RISK MANAGEMENT I. OVERVIEW The Board of Education of Wicomico County is a member of the Maryland Association of Boards of Education (MABE) Group Insurance Pool and the Workers’ Compensation Group Self-insurance Fund. The majority of all insurance programs for WCBOE are provided through the Pool and Fund. The Board’s Risk Manager is responsible for managing all insurance coverage for the Board and making necessary recommendations to the Comptroller to increase or decrease coverage as deemed necessary. II. CONTROL OBJECTIVES • To evaluate risk in light of total cost of insurance coverage and ensure risk vs. cost is weighed and reviewed with the Comptroller as part of the annual budget process. • To ensure the Board is in compliance with all laws and regulations pertaining to the provision of insurance coverage for the Board and its property. III. PROCEDURES WCBOE purchases a majority of its insurance through the Maryland Association of Boards of Education (MABE) - property, liability, and workers compensation. This procedure has been approved by The Board of Education of Wicomico County and complies with insurance practices followed by other Boards of Education in Maryland. WCBOE may be exposed to risk when using contractors, consultants, service providers, and/or vendors to provide goods or services or when outside organizations and individuals use the Board’s premises and/or facilities. The Board requires contractors, consultants, service providers, and/or vendors doing business with the Board, as well as outside organizations and individuals using Board premises and/or facilities, to maintain liability insurance and other insurance as necessary to reasonably protect WCBOE’s financial interests, and in amounts deemed adequate by the Board. Insurance Procurement: The Comptroller has been delegated the responsibility for procurement of insurance. Annually, the Risk Manager reviews the Board’s current coverage levels and makes recommendations as part of the Board’s Budget process. A. TYPES OF COVERAGES 1. Property, General Liability and Auto Coverage The Board acquires these major lines of insurance through MABE’s Group Insurance Pool. The Board’s Risk Manager is the Trustee to the Group Insurance Pool representing the Board’s interest. Each type of coverage is subject to a deductible. The deductible is charged to the appropriate insurance deductible account. Insured values are reviewed annually by the Risk Manager with MABE Group Insurance Pool staff, and the buildings are insured on a replacement cost basis. MABE Pool Fund Data for Premium Calculations: The purpose of this activity is to provide MABE with budget, enrollment, and vehicle data, etc. to project accurate premiums to be charged to MABE Pool