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Poestenkill board: town insurance will not cover this legal matter
Summary
Board members said the town's insurance will not cover the litigation matter that prompted hiring special counsel; officials told the board the relevant policy was the same one in place last year despite other coverage increases.
During discussion of the resolution to retain outside counsel, a Committee member asked whether the town could delay hiring counsel until the August 13 meeting. The Chair said the town had been served after the prior agenda meeting and must respond before August 13, and stated plainly, "Our insurance that we carry does not cover, this." The Chair added that staff had called the insurance carrier to ask why coverage was denied.
A Committee member asked whether the town had changed carriers or policies since last year. The Chair replied the town had not changed carriers and that while some coverage amounts had increased, "this was the same policy that was in place last year." Town officials did not provide details about the carrier's rationale or any written denial in the transcript; the Chair's comments indicate staff had contacted the carrier but the transcript does not include any carrier response or documentation.
