Schools Facing Insurance Costs as Kentucky Trust Disbands

The financially troubled Kentucky School Boards Insurance Trust will disband, forcing school districts to search for new providers of workers compensation, property and liability insurance policies.
The closure means financial consequences for all of the state�s 174 school districts, which will have to divvy up some $60 million to cover the cost of past insurance claims.
The decision was announced publicly Monday in Lexington after leaders in each school district were personally notified.
The Kentucky School Boards Association had turned the insurance program over to the Kentucky League of Cities to be administered about two years ago. KLC Executive Director Jonathan Steiner said Monday a financial review revealed the insurance program had fiscal woes that were worse than first believed, forcing the June 30 shutdown.

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