Township clarifies insurance status after $1.75 million settlement; township liable for $275,000

Lehigh Township officials addressed circulating claims that the township was "uninsurable," saying the township remains insured despite a prior lawsuit that yielded a $1.75 million settlement.

Manager Alice Rehrig told the board that the carrier negotiated a settlement to avoid costly litigation; under the agreement the township’s direct responsibility was $275,000 and the settlement included nondisclosure, nondisparagement and non‑admission terms. Rehrig and other officials said the township’s premiums did not increase as a direct result of that settlement, although some insurance carriers subsequently declined to submit competing bids because of the loss history.

Board response and context: Supervisor Cindy Miller said rumors that the township is uninsurable are false and defended the township’s insurer. Monica Brown, who said she has experience in municipal insurance, corroborated that specialty municipal markets can decline to quote after large losses but that coverage can and does continue with other carriers.

Why it matters: Insurance market perceptions affect the township’s ability to find competitive coverage and may influence future procurements and budgeting for risk. Officials said they sought to protect taxpayers by accepting the settlement the carrier recommended to limit higher litigation risk.

What’s next: No additional action was taken at the meeting; board members said they will continue to seek competitive quotes as markets allow and will provide accurate information to residents about coverage status.