California schools face a new budget hit: Soaring insurance costs after sex abuse lawsuits
California schools face soaring liability costs after AB 218 eased lawsuits for abuse survivors, causing districts to cut programs and delay maintenance, with LA County settling over 6,800 claims.
- Earlier this month in Ridgecrest, Sierra Sands Unified School District showed cuts to playgrounds and deferred upgrades at Gateway Elementary School due to surging liability insurance premiums since 2019.
- AB 218, the 2019 law, reopened legal windows by allowing sexual-abuse survivors to sue within five years of remembering abuse, producing more than $3 billion in claims.
- Insurance data show sharp yearly jumps, with Los Angeles County paying $4 billion and Los Angeles Unified issuing $4000 million in bonds to settle claims, highlighting rising costs.
- School districts are cutting programs and leaving vacancies unfilled as Napa County’s premiums could reach $20 million annually, and statewide counties may need an extra $9.5 billion, forcing budget cuts.
- Lawmakers are under pressure as districts press for caps, while Sen. John Laird’s 2025 bill failed amid opposition and trial attorneys and plaintiffs' firms continue resisting limits to defend AB 218.
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California schools face a new budget hit: Soaring insurance costs after sex abuse lawsuits
Under a recent California law, more sex abuse victims are suing school districts, increasing insurance premiums for all districts.
California schools face a new budget hit: Soaring insurance costs after sex abuse lawsuits - The Voice of San Francisco
This story was originally published by CalMatters. Sign up for their newsletters. Since California made it easier for sexual abuse survivors to sue government agencies, victims have brought forth more than $3 billion in claims. But even agencies that haven’t been sued are facing financial hardship as a result of the law — through skyrocketing insurance premiums. School districts, counties and other public agencies in every corner of California h…
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