After winning the lawsuit, city lost its insurance — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

After winning the lawsuit, city lost its insurance

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The city of Fort Oglethorpe had to scramble to find insurance after the Georgia Interlocal Risk Management Agency (GIRMA) canceled its property and liability coverage due to excessive claims.

GIRMA said it had paid out 155 percent of premiums to cover the city over the past five years. Fort Oglethorpe paid $375,000 last year for property and casualty insurance, plus $166,000 for workers’ compensation claims. The city kept its workers’ comp coverage.

The bulk of the city’s expenses came from a single employment discrimination and civil rights lawsuit. The city won the case but spent about $600,000 defending it.

Interim city manager Ron Goulart said, “We won the battle but lost the war on the financial front.” 

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