MUSIC Matters – Volume 26 – 3rd Quarter

 

Articles and job aids are linked below Dr. Bernie Dubray’s and Mr. Ron Orr’s messages. Be sure to check out the Cybersecurity Risk Management section.

IMPORTANT MESSAGES

 

 

Dr. Bernard Dubray

Superintendent of Schools

Fort Zumwalt School District

 

I hope you had a wonderful start to the 2022-23 school year. It’s always an exciting time when school resumes, and thank you for continuing to lead and serve our school communities.

The MUSIC Board held its September Board meeting on September 8 at Lake Ozark, MO. It was reported to the Board members that, outside of the flood damages experienced, all other lines of coverage are trending positively for our organization. We welcomed Matt Unger, Superintendent of Morgan County R-I School District, as a new member of the Board, replacing Dr. Jeanette Cowherd from the Park Hill School District, who has retired. The Board also voted to accept Mary Jo Gruber of the Pattonville School District as a new member of the Board, replacing Ron Orr. As you know, Ron has been selected as MUSIC’s new Executive Director. Finally, the Board voted to amend the bylaws and add a tenth member to the Board to represent the Kansas City area. The tenth member will allow us better to receive input from all areas of the state.

One area the Board has been struggling with for a few years is how to provide affordable cyber coverage. In action taken by the Board on this subject, the members authorized a two-step process to help meet the current insurance market cyber control requirements. First, each member will be required to certify by Dec. 31, 2022, that they know the MUSIC recommended cyber controls. Second, these controls must be in place by July 1, 2023Meeting both of these requirements will allow the member to maintain the existing deductible of $10,000Conversely, failure to meet these requirements will increase the cyber deductible to $50,000.

Finally, I can report from traveling throughout my own school district that the spirits in the buildings seem to be up, and the lack of mitigation strategies seems to be having a very positive effect on staff and students alike. Hopefully, this terrible time of the past two years is behind us, and we can go forward with the business of educating children at our schools and community colleges. The next meeting of the MUSIC Board is scheduled for October 6. I wish you the very best for the start of the 2022-2023 school year.

 

Mr. Ron Orr Photo

 

 

Mr. Ron Orr

MUSIC’s Executive Director

 

 

I hope you had a wonderful start to the 2022-23 school year. It’s always an exciting time when school resumes, and thank you for continuing to lead and serve our school communities.

As Dr. DuBray mentioned in his message, the MUSIC Board held its 3rd Quarter meeting on September 8th. This was also my first meeting as Executive Director, and I’m incredibly grateful for the opportunity the Board has given me to serve MUSIC and each of our members. During that meeting, the MUSIC staff informed the Board that overall claims continue trending well below original projections. Despite the recent flooding in the St. Louis region, losses are down across several lines of coverage. We’re having a very good claims year and are cautiously optimistic that 2022 will be a great financial year for the program.

We recently began preparing for the 2023 renewals of our various reinsurance policies. Current insurance markets have become very difficult, and many organizations are seeing significant rate increases from their carriers. However, MUSIC has avoided some of those challenges so far, and the program’s finances remain a real strength. In June, the MUSIC board approved a surplus allocation credit which will provide an additional 2.4% or $2.5 million overall reduction to upcoming assessments this fall. This will be in addition to any membership credit provided to all members. Being able to share surpluses back with members has always been a strength of the program and a clear distinction between MUSIC and for-profit insurance companies.

As many of you know, cyber terrorism and claims have become a serious concern. MUSIC began providing cyber coverage to all members in 2019, and our reinsurance premiums have grown by 160% since then. In addition, the coverage being provided by those carriers has been cut in half. As we plan for the future, requirements are being placed on us by the insurance market, which will require all members to implement specific controls to combat cyber terrorism. These required controls are currently being reviewed and will be released shortly. In addition, as Dr. Dubray mentioned, each member will be required to certify by Dec. 31, 2022, that they are aware of the MUSIC cyber controls recommended and that the controls must be in place by July 1, 2023Meeting both of these requirements will allow the member to maintain the existing deductible of $10,000. Failure to meet these requirements will increase the deductible to $50,000.

The Board of Directors will set the 2022 assessment rates at the 4th quarter meeting scheduled for October 6, 2022. They are also expected to approve a membership credit in the 8% – 10% range.

The 2022 renewal questionnaires (RQs) are due next Friday, September 23rd. As you work on them, please review the Statement of Values listed on the RQ to ensure they reflect current building use and replacement cost. Please also note that we do not mail out invoices. Instead, we will send out an Eblast when the invoices are posted to the document libraries in early November.

Please know that you can always call me or any of the MUSIC staff whenever you have a question or need assistance. We’ll make every effort to be helpful.

 

Cybersecurity Risk Management

Social Engineering Coverage Reminder (Please Read)

See Yourself in Cyber 

 

Loss Control

5 Minute Safety Talk – Safety Tips for the Fall Season

Ladder Safety Is NO Accident

 

News Articles

Educators Are the Difference Makers in Preventing Sexual Abuse

Legislative Changes in Student Transportation