Post by Logan on Sept 6, 2016 6:50:23 GMT -6
Montana: Insurance prices putting the squeeze on Univ. of Montana, state, budgets
A steep hike in the state's cost of insurance is putting pressure on the University of Montana's budget — pushing up tort and liability 29 percent in one year and property insurance up 28 percent, according to a UM budget document.
The university is part of the state's self-insurance program, and it's feeling the impact of a statewide increase in losses that amounts to some 300 percent over the last five years, said Mike Reid, vice president of finance for UM.
"Our rates are going up substantially as a result of payouts that are occurring through the entire state, and in order to manage a self-insured system, the premiums are going up to cover those costs," Reid said.
In the 2015 fiscal year, property insurance cost UM some $1.08 million, he said, and now, it's up to $1.47 million. All in all, UM is paying about $600,000 more per year for insurance costs.
Read more: billingsgazette.com/news/state-and-regional/montana/insurance-prices-putting-the-squeeze-on-um-state-budgets/article_7c8a1109-1eca-5405-8351-43f3cd7cea1b.html
A steep hike in the state's cost of insurance is putting pressure on the University of Montana's budget — pushing up tort and liability 29 percent in one year and property insurance up 28 percent, according to a UM budget document.
The university is part of the state's self-insurance program, and it's feeling the impact of a statewide increase in losses that amounts to some 300 percent over the last five years, said Mike Reid, vice president of finance for UM.
"Our rates are going up substantially as a result of payouts that are occurring through the entire state, and in order to manage a self-insured system, the premiums are going up to cover those costs," Reid said.
In the 2015 fiscal year, property insurance cost UM some $1.08 million, he said, and now, it's up to $1.47 million. All in all, UM is paying about $600,000 more per year for insurance costs.
Read more: billingsgazette.com/news/state-and-regional/montana/insurance-prices-putting-the-squeeze-on-um-state-budgets/article_7c8a1109-1eca-5405-8351-43f3cd7cea1b.html