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By Jessica Schuler

Trust Is Earned, Not Given

In 2019, the Trust will be releasing a series of stories to remind Risk Management Summit (RMS): The Risk Management
our members of the Trust’s mission, how we help Arizona school Summit is an annual conference hosted and facilitated by
districts, and what sets us apart from typical insurers. the Trust. At this event, high-impact, school-related risk
In this first story, we talk with Joel Wirth, former CFO of management topics are addressed. The K-12 RMS is held in
Chandler Unified School District, who was a driving force February of each year and the Community College RMS is held
behind the Trust at its inception in 1986, and for many years each November.
thereafter. Trust/NAU Leadership Academy: With guidance from
The Trust was formed out of necessity when property and Arizona’s leading education attorneys, the Trust/NAU Leadership
liability rates skyrocketed for public entities. With the passage Academy encourages active participation in a group learning
of public entity pooling legislation in Arizona, the opportunity environment. Presenters walk attendees through challenging
emerged for school districts to join together to self-insure their scenarios, and help them create effective responses. The Trust/
property and liability risks. NAU Leadership Academy is held in Flagstaff in June and in
It was not all smooth sailing from the start. As Mr. Wirth Tubac in September.
recalls, the Trust began as a small pool with only a few members. Safe Schools: The Trust has partnered with Scenario
There was little cash available, and the Arizona Department of Learning, a leading developer of safety and compliance solutions
Insurance (DOI) threatened to shut down the fledgling pool. Mr. for schools and workplaces, to offer online training to Trust
Wirth and other early supporters met with DOI to talk through members. Members have complimentary access to a suite of 12
necessary steps for survival. The Trust got a reprieve when award-winning courses covering important school and campus
American Reinsurance decided to take a chance on backing safety topics.
the new pool’s risks. Mr. Wirth and other early supporters then Emergency Management Program: The Trust Emergency
began meeting with school boards across the state, encouraging Management Program assists districts with their emergency
them to join. preparedness efforts. Emergency plan review, staff training, and
The Trust has grown dramatically since those early days. tabletop exercises are some of the ways this program helps you
Today, it serves 249 districts and community colleges, making be better prepared when disaster strikes.
it one of the largest public entity pools in the United States. Mr. Premise Inspections: Every two or three years, the Trust Loss
Wirth reminisced, though, that some of the first members to join Control Department conducts thorough site inspections of each
the Trust were small districts in rural parts of the state. These school district, focusing on the identification and elimination of
districts tended to have limited funding and little or no means hazards and unsafe conditions.
to make necessary repairs and improvements. Inevitably, this Cyber Security Services: The Trust offers members cyber
meant insurance claims. The Trust was there to process and pay security services aimed at mitigating risks associated with cyber
those claims. liability events. Educational videos, cyber risk assessments,
“Some districts that would never be able to get a new roof, got a policy templates, and consultations are available to members at
new roof,” said Mr. Wirth. “Statewide, the Trust fixed everything.” no additional cost.
As the pool grew and its reach extended throughout the state, Trust Loyalty Credit: Each year, the Trust offers members
its influence increased. While some of the smaller, rural districts an opportunity to earn a portion of their previous year’s
may have seen most of the initial benefit, it wasn’t long before contribution as a credit against renewal costs by meeting certain
districts of all sizes and varieties saw the advantages of becoming performance criteria. Since its inception in the 2009/2010 year,
members. the loyalty credit has returned approximately $34.4 million to
“The Trust exists to help take care of the financial needs of members.
school districts. It looks for reasons to fix things, where traditional The Trust is proud of its history, and will continue to evolve
insurance looks for reasons not to fix things.” Mr. Wirth added. with member needs. Whatever the future brings, though,
As the Trust has grown over the past 32 years, it has also the Trust will stay true to its central purpose: keeping schools
evolved from a provider of property and liability coverages to a and students safe, reducing losses, and providing affordable
full-service risk management partner. Its coverages have grown indemnity protection for all districts, no matter their size or
over the years as member needs have evolved, and so too have location.
the programs and services it offers to districts. Some noteworthy
examples include: Jessica Schuler can be reached at: jschuler@the-trust.org

22 THE EDGE | SPRING 2019