School Board Errors and Omissions Coverage
Who is Covered?
The School Board Legal Liability (SBLL) Policy extends protection to the school district, the Board of Education of the school district, and all former, present or future employees, volunteers and officials of the school district. Accordingly, the Policy does not need to be amended with each new hiring, or changes in school board membership.
Moreover, school officials, employees, etc., who leave the school district are also extended protection for suits arising out of their past activities for the school district. This is a significant feature of the SBLL Policy.
Definition of Claim
When does the School Board Legal Liability coverage begin?
Unlike coverage offered by other sources, the SBLL Policy begins to protect its members once a demand has been made upon the member for damages or services.* This means that even a threatening letter making such a demand will trigger SBLL coverage.
Many insurers offering School board legal liability protection only begin that protection upon the filing of a lawsuit or other official proceeding. By this point in time, a school district may already have incurred substantial legal expenses.
Will settlements reached without the filing of a lawsuit be covered?
By providing an expanded definition of the term "claim," even settlements reached prior to the filing of any lawsuit may fall within the SBLL Policy's definition of loss. Under coverage provided by some other sources, these claims would not be covered.
When does the SBLL Policy begin to pay defense expenses?
The SBLL Policy pays expenses incurred in the defense of a claim.* Consequently, it can start paying even when that demand is only in the form of a threatening letter. In other words, the SBLL Policy begins paying defense expenses well in advance of coverage offered by other sources.
Will the SBLL Policy pay defense expenses incurred in administrative proceedings?
Because most charges filed with administrative agencies are demands for damages or services, the SBLL Policy will provide a defense to its members in these types of proceedings.
This feature sets the SBLL Policy apart from coverage offered by other providers. Moreover, assuming the claim is not otherwise excluded from coverage, the SBLL Policy will provide defense coverage for not only administrative hearings, but many mediation and arbitration sessions as well.
Types of Claims
Are employment disputes covered?
Claims brought by employees are excluded in the SBLL Policy. However, the SBLL Program will provide defense coverage for such claims subject to an aggregate limit of $250,000.
Are sexual harassment claims covered?
Yes. The SBLL Policy, unlike coverage offered by some other providers, does not contain sexual harassment exclusion. Such claims, whether brought by employees or students, normally fall within the scope of the SBLL protection.**
Are special education proceedings covered?
The SBLL Program will provide defense coverage for up to $500,000 in the aggregate to the school district in special education proceedings. Moreover, this coverage begins as soon as a demand is made upon the school district for special education services.
* - This means that the policy will provide defense coverage for these types of claims, subject to certain terms and conditions, from the first demand for services through the administrative hearings and beyond. Coverage offered from other sources requires the filing of a lawsuit or an administrative hearing in which money damages are sought. Special education disputes can easily fall through the cracks of this type of limited coverage. The SBLL Policy does not have such restrictions.
** - Some exclusions do apply.
This product sheet contains a summary of the School Board Legal Liability Program- it should not be relied upon for a full understanding of the coverage. Please read the policy for a full description of benefits.
