North Whidbey Parks finds insurer to provide coverage: lawsuits, instability make choices scarce, drive up premium costs

Published 3:22 pm Tuesday, August 18, 2015

With a few weeks left before the North Whidbey Parks and Recreation’s insurance coverage runs out, the parks board bought coverage from one of the few companies that would sell it to them.

Enduris, the district’s insurer, opted not to renew coverage this spring. Coverage ends at the end of this month.

The insurance company balked at covering the district after a series of lawsuits.

In particular, Enduris shelled out more than $7 million to five women who were sexually assaulted by a former swim coach.

Not long after that lawsuit was settled in 2013, two fired employees sued the district for wrongful termination and racial discrimination.

Those cases were settled for $20,000 each to avoid the cost of a trial.

“We work with the public and we use taxpayer dollars,” said interim Director Erika Miller. “It’s the responsible thing to make sure we have the best coverage we can get.”

She hired a broker to hunt down options.

During a special meeting Monday night, the broker, Jeff Olsen of the Leavitt Group, presented one viable option.

The offer from Cities Insurance Association of Washington will cost $64,000 annually — about $10,000 more a year in premiums than the previous plan — but will provide similar coverage and deductibles.

Half a dozen companies either wanted premiums that were too high or declined to cover the district because of lawsuits.

One company expressed concern about the turnover in leadership on the parks district board of directors.

Glatfelter Insurance Group said the district “appears to be unstable and in a state of flux,” Olsen told the board.

He also praised the interim director for making changes that ultimately convinced the company to insure the district.

Miller, a former private investigator, suggested more vigorous background checks of employees and training that addressed appropriate workplace behavior, employee rights and harassment.

Miller also tightened cash handling and deposit controls and developed procedures to improve accounting practices.

Unlike Enduris, this company “vigorously defends nuisance claims,” Olsen said.

The parks board approved the plan. Coverage is set to begin Sept. 1 and will continue through the end of 2016.