Natchez-Adams School District to see insurance rate surges for upcoming schoolyear

The rate increases are due to a $660,000 lawsuit that involved the forced retirement of an elementary school principal due to racial discrimination

Insurance News

By Lyle Adriano

The legal liability insurance rate and deductible for the Natchez-Adams School District is set to increase for the upcoming schoolyear, 2016-17.

On Wednesday, the district’s trustees discussed rate proposals before selecting which coverages to green light for the next year, reported Natchez Democrat.

Also set to increase next schoolyear are the district’s automotive and property liability rates. General insurance rates, however, will marginally decrease.

Overall, the school district will up its insurance expenses to $305,991 for 2016-17, from $257,999 in 2015-16. A good portion of the increase is from legal liability, bumping up to $37,000 more a year. The district’s deductible, on the other hand, increased from $25,000 last year to $100,000 in the coming year.

RSUI Group of Atlanta will remain the school district’s insurer for legal liability, and Zurich Insurance Group will insure for the rest of the coverage.

The increases are an adjustment prompted by a $660,000 lawsuit that involved the coerced retirement of former Susie B. West Elementary School principal Cindy Idom due to racial discrimination. In January, a federal civil jury ruled the district liable for creating a hostile work environment, awarding Idom roughly $668,000 in back pay, damages and legal fees.

A compromise offer of $625,000 was reached April. The district had to disburse $125,000 since a settlement was offered before the final judgement was rendered, and the district chose not to accept the initial settlement.

Natchez Democrat also reported that the board voted unanimously to add a cyber/data breach option for $15,348 to its insurance packet.

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