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Board authorizes resolution to shop for excess‑liability coverage after AB 218 raised premiums
Summary
Officials told the board that Assembly Bill 218 has driven up liability premiums and large settlements; the board adopted a resolution to notify the Schools' Excess Liability Fund (SELF) that the district will 'shop the market' for alternative excess‑liability coverage.
District legal and business staff explained that Hermosa Beach City School District participates in the Alliance of Schools for Cooperative Insurance Programs (ASCIP) and in the Schools' Excess Liability Fund (SELF). Staff said that, since the passage of Assembly Bill 218, excess‑liability premiums and pooled settlement assessments have risen substantially, prompting staff to recommend the board adopt a resolution to provide notice to SELF that the district intends to review alternatives.
Dr. Wiles told trustees that the notice does not mean immediate withdrawal from SELF but allows the district to solicit market options. Trustees discussed the scope of the insurance market, the impact of recent multimillion‑dollar settlements and a SELF assessment the district paid the prior year. The board voted to approve the resolution authorizing staff to review alternative coverage and to give notice to SELF.
Staff will begin a market review and return with options; trustees emphasized they sought better value given the rapidly changing excess‑liability landscape.
