Garden Grove : School District Delays Decision on Insurance

The decision on what to do about replacing the Garden Grove Unified School District’s liability insurance policy has been postponed until the April 2 meeting of the Board of Education. The current liability carrier, Twin City Fire Insurance, has notified the district that the policy will be canceled April 2 because of the increased risk in insuring school districts and municipalities.

Garden Grove officials said a trend toward higher insurance costs could have countywide implications and could approach the skyrocketing rates common to school districts in the middle 1970s. The current $20-million policy--which cost $61,200, with the district liable for the first $100,000 in damages--would have remained in effect until the end of the school year.

Insurance costs for the district rose from $174,000 in 1973 to a peak of $419,000 in 1979. Since then, premiums have declined steadily, and the district paid $140,000 this year, including the $61,200 for liability coverage.

The district is seeking quotes on a new policy. Thus far, the lowest quote has been $161,000 for a $10-million policy, spokesman Alan Trudell said.

Elmer Clute, the district’s assistant superintendent for business services, said he expects additional quotes before the April 2 cutoff date.