By China Cassidy The Navajo County Community College Governing Board held a special board meeting last week to discuss whether to adopt a policy requesting that returning students sign a waiver of liability as part of the requirements that needs to be met to secure an interim insurance policy before the college can begin operations. According to President Mark Vest, the college was informed that the insurers that previously provided COVID-19 liability coverage will not continue to do so. Vest explained, “The college, along with 800 community college districts and most of the K-12 districts in the state who utilize the trust as our primary insurance carrier, were notified earlier this summer, about three weeks ago, that the trust had been unable to find reinsurers for its COVID liability coverage, and therefore had to drop the COVID liability coverage for all of its clients including Northland Pioneer College, retroactive to July 1. “Subsequent to that notification, the trust notified us that they had developed an alternative plan as an interim measure. The option before the board is to approve or not approve the college, the administration to join this endorsement pool.” Vest also informed the board that there is an upfront premium due to secure the interim option for coverage. “This endorsement pool would provide limited liability coverage to the college. Again, retroactive to July 1. To do so, to have this retroactive coverage, we must sign and return to the trust, the joining documents by Sept. 15.” Vest said that there is a premium due, which is based on how many students they anticipate will register, which the college estimates to be $20,000. Vest further explained, “There are individual institutional limits, there are individual claim limits and there is a shared limit for all of the community college and K-12 districts that join the pool. There is a $1 million cap for each occurrence for, essentially for each claim and this cap does include both legal defense cost and indemnity payments. “ Vest went on to explain that there is a $10,000 per claimant in indemnity coverage. There is a $2 million annual aggregate cap per district. In other words, NPC’s maximum coverage, maximum aggregated coverage under this endorsement pool would be $2 million. And the trust has a set aside cap for all districts combined of $25 million. Chairman Frank Lucero asked Vest for further clarification as to how the $25 million is dispersed between all entities within that pool, “In other words, say some other district, college district has a bunch of cases and they clean out the $25 million, it’s all gone.” Vest responded, “That is my understanding. That’s why we say this is a limited interim option it does not provide the same level of coverage that we had formerly seen provided by the trust.” Vest explained that it is the goal to get all students to sign the waiver liability form because that would decrease the colleges liability should an incident occur. If NPC joins the endorsement and there is some form of a claim against the college, there would be a zero dollar deductible per occurrence if the claim relates to a student for whom the district has a signed liability waiver release. There is a $10,000 deductible for each occurrence of claim if the college only has a signed acknowledgement of risk. A $20,000 deductible for each occurrence of claim if the college has no liability waiver release and no assumption of risk on file. “Given the difference in those deductibles, our recommendation would be to move forward as we know NAVIT (Northern Arizona Vocational Institute of Technology) and many of our local school districts are doing with a signed waiver of liability.” The president further offered, “The two primary preconditions we must meet to meet the coverage threshold are one, we must adopt and utilize either an acknowledgement of risk form related to COVID-19, one that is approved by the trust, and/or a waiver of liability, basically a release of liability related to COVID-19. We have had the college attorney review the trust provided samples acknowledgement of risk form and cover letter and a waiver of liability form and cover letter. If you take action and direct the college to join the endorsement pool which will cost us $20,000 by definition, that board direction requires us to meet the preconditions in the trust document.” Vest explained that a refusal to sign would not disqualify the college from participation in the pool. “The recommendation from the trust is that we make a good faith effort to get a liability release from all students but the trust has already told us in document that they will not invalidate our participation in this pool and will not invalidate our coverage if we have a claim that involves a student that has not signed a release.” Upon board member Alias Jouen’s request to clarify what action the college is asking the board to take, Vest answered, “If you take action and direct the college to join the endorsement pool, which will cost us $20,000 by definition that board direction requires us to meet the preconditions in the trust document.” Jouen also asked for clarification as to whether the college could afford the $20,000 premium. Vest replied, “We are utilizing Federal CARES funds to do a significant number of purchases over the summer. Both of kind of mitigating equipment like plexiglass but also sanitation and cleaning supplies and we are prepared to do that for the upcoming two semesters.” Vest also informed the board that the college has adopted a policy requiring that all students and employees wear masks. Refusal to comply will result in written consequences and can include an interim suspension. Following the discussion, the board approved the interim insurance policy as explained by Vest. The board also approved a request by the college to purchase 119 Lenovo laptops and protective sleeves from Lenovo in the amount of $61,594 for students to use while the bulk of the classes are only being offered online.
