Sex abuse lawsuits send insurance costs SKYROCKETING for 130 WA state school districts

School districts across Washington are facing steep increases in liability insurance costs as a wave of sexual abuse lawsuits continues to drive multimillion-dollar settlements.

According to The Cascadia Daily News, roughly 130 school districts participating in the Washington Schools Risk Management Pool (WSRMP) were recently notified that their rates will increase by an average of 45 percent for the coming school year, far exceeding an earlier projected increase of 18 percent.

Unlike traditional insurance, Washington's school risk pool allows districts to contribute to a shared fund that pays for legal claims and settlements. As payouts have surged, every participating district is now paying more, even those with no history of abuse claims.

WSRMP CEO Deborah Callahan told the outlet that the increase is largely tied to rising costs from sexual abuse litigation, including several high-profile settlements. Seattle Public Schools agreed to pay a former student $16 million in 2024 over abuse by a coach, while Federal Way Public Schools recently reached a $15 million settlement with two former students who alleged they were sexually assaulted by a teacher.

A 2020 Washington Supreme Court decision, W.H. v. Olympia School District, held that school districts can be held strictly liable for discriminatory acts committed by employees, including sexual abuse, even if administrators had no prior knowledge of the misconduct. In addition, changes to the state's statute of limitations now allow many survivors to pursue civil claims decades after the abuse occurred. District officials say the mounting legal costs are creating serious financial challenges for schools already struggling with budget pressures.

The Anacortes School District absorbed an unexpected $257,000 increase after the revised rates were announced, forcing administrators to eliminate some teaching positions and reassign staff despite voters approving a levy earlier this year. The Meridian School District is facing an additional $275,000 in costs, while Mount Vernon School District expects its liability expenses to rise by approximately $621,000 compared to the previous school year.

School officials and WSRMP leaders are now urging lawmakers to revisit state policy. Among the proposals under discussion are eliminating Washington's joint liability standard, which can leave a district responsible for an entire judgment despite minimal fault, and overturning the 2020 Supreme Court decision establishing strict liability.

The risk pool is also advocating for the creation of a state-managed compensation fund for historical childhood sexual abuse claims involving public schools. Under the proposal, older claims would be compensated through the state fund rather than individual lawsuits against school districts.