North County
North County Transit District directors decided, with some misgivings, to drop the current insurance coverage for legal action against them after they learned that the premiums would be increased by nearly 700% and coverage would be reduced to near zero.
The policy, which formerly cost $1,768 a year for $1 million coverage, was increased to an $11,355 premium. Insurance coverage was excluded on discrimination or violation of civil rights claims, wrongful discharge claims and any claim filed after the expiration of the insurance, even if the alleged offense occurred during the covered period.
“In the opinion of the insurance broker, this policy is not much better than having no insurance,” Executive Director Richard Fifer said.
“It appears that the high premiums are a result of high awards by the court system,” Fifer said, explaining that most local governmental agencies face the same spiraling costs.
The board instructed Fifer to seek other insurance bids, to explore the possibility of self-insurance by NCTD or in conjunction with other local agencies.
Until then, they decided, the board would “go bare,” without liability insurance.
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