Boone County board selects USI/Liberty Mutual insurance program, approves resolution to let superintendent finalize contracts
June 12, 2026 | Boone County, School Boards, Kentucky
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The Boone County Board of Education voted to adopt the insurance program recommended by its consultant and to authorize the superintendent to execute contracts that implement the coverage.
Consultant Michael Novak summarized a competitive review of two finalists: a shared/pool approach offered through Bluegrass Risk Management (presented by Arthur J. Gallagher) and a commercial program proposed by USI with Liberty Mutual and other carriers. "We are recommending that USI and the Liberty Mutual program be accepted," Novak told the board, citing stronger dedicated limits and greater certainty in a commercial program.
Why it matters: the recommendation increases liability and property limits and adds umbrella protection designed to strengthen financial protection for catastrophic losses. Novak and staff discussed tradeoffs between a pooled/shared property program (where large, diversified shared limits are spread across many members) and a commercial program with dedicated limits to the district.
KDE deductible rule and next steps: staff noted a Kentucky Department of Education (KDE) requirement currently referenced at a $25,000 commercial deductible level, while the pooled entrance pool has been granted waivers that allow a $100,000 deductible. Novak and staff said they would work with USI and KDE to clarify deductible rules and to pursue higher internal funding of deductibles where fiscally prudent. Staff also proposed establishing a restricted district account to accumulate funds designated to meet higher deductibles on an actuarial basis; the board approved creating such a fund.
Cost and options: the board heard three options under providers; option one (the recommended USI/Liberty Mutual commercial program) was explained as fully compliant with KDE rules. The presentation said higher‑deductible options could reduce premiums materially (one example discussion compared a $250,000 deductible scenario with long‑term savings), but staff recommended beginning with option one while seeking KDE clarification so the district can later move to higher retentions if appropriate.
Board action: a motion to approve USI and the Liberty Mutual program (option one) passed by the board, and a second motion approved Resolution 2026‑02 authorizing the superintendent to execute all necessary documents to implement the program. Trustees also approved creating the restricted fund to prefund insurance deductibles. The board directed staff to continue annual reviews and to negotiate final terms with the broker and carriers.
The board will receive further updates and annual audits of the district’s insurance program as staff negotiates final terms and works with legal and KDE to clarify deductible requirements.
Consultant Michael Novak summarized a competitive review of two finalists: a shared/pool approach offered through Bluegrass Risk Management (presented by Arthur J. Gallagher) and a commercial program proposed by USI with Liberty Mutual and other carriers. "We are recommending that USI and the Liberty Mutual program be accepted," Novak told the board, citing stronger dedicated limits and greater certainty in a commercial program.
Why it matters: the recommendation increases liability and property limits and adds umbrella protection designed to strengthen financial protection for catastrophic losses. Novak and staff discussed tradeoffs between a pooled/shared property program (where large, diversified shared limits are spread across many members) and a commercial program with dedicated limits to the district.
KDE deductible rule and next steps: staff noted a Kentucky Department of Education (KDE) requirement currently referenced at a $25,000 commercial deductible level, while the pooled entrance pool has been granted waivers that allow a $100,000 deductible. Novak and staff said they would work with USI and KDE to clarify deductible rules and to pursue higher internal funding of deductibles where fiscally prudent. Staff also proposed establishing a restricted district account to accumulate funds designated to meet higher deductibles on an actuarial basis; the board approved creating such a fund.
Cost and options: the board heard three options under providers; option one (the recommended USI/Liberty Mutual commercial program) was explained as fully compliant with KDE rules. The presentation said higher‑deductible options could reduce premiums materially (one example discussion compared a $250,000 deductible scenario with long‑term savings), but staff recommended beginning with option one while seeking KDE clarification so the district can later move to higher retentions if appropriate.
Board action: a motion to approve USI and the Liberty Mutual program (option one) passed by the board, and a second motion approved Resolution 2026‑02 authorizing the superintendent to execute all necessary documents to implement the program. Trustees also approved creating the restricted fund to prefund insurance deductibles. The board directed staff to continue annual reviews and to negotiate final terms with the broker and carriers.
The board will receive further updates and annual audits of the district’s insurance program as staff negotiates final terms and works with legal and KDE to clarify deductible requirements.
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