“One-stop shopping”, “plug-and-play”, “everything’s included”, and “one size fits all” are the kinds of buzzwords we may find appealing for the convenience they imply. These features are touted for many products, including insurance, employee benefits and risk management programs. But such features don’t translate into valuable benefits for you when the “package deal” doesn’t fit, you’re left with gaps, and pay for features you don’t need.
Charter schools have often participated in pooled purchasing programs because they offer savings and a comprehensive set of services for benefits and property & casualty programs. There are only a few options to pick, so evaluating the choices is quick and simple. However, your charter school may discover your coverage leaves something uncovered, retentions that could severely impact your budget if you have a claim, and are left with extra pieces in the box you’ll never use. If so, customization may be a better solution to find the value you need.
Pooled programs gain most of their savings by spreading risk among all the participating organizations. Depending on your demographics and utilization, you may the one subsidizing costs for others. If your population has more favorable characteristics, your organization fosters a strong “safety/wellness culture”, or your facilities and activities differ from others, you may see lower premiums in a customized insurance plan.
"Customization may be a better solution to find the value you need."
Pooled employee benefit programs might include health plans that don’t provide ideal provider networks for your community, or don’t offer employee wellness that address the type of cost drivers impacting your utilization. Shopping for plans that keep your employees and their families healthier makes more sense in the long run.
Property and liability coverage in pools also save money by providing “excess” coverage that kicks in after you fulfill a “self-insured retention” or SIR. If the amount of your SIR – should you incur a large claim – keeps you awake at night, a customized plan could help you budget this deductible amount better.
If exploring a customized insurance program sounds like a lot of time, energy and resources you don’t have, a broker/consultant can take a great deal of the burden off your shoulders, help identify the best options and values for you, and even help you with pool withdrawal requirements. Keenan experts are available to assist in evaluating your situation.
