Can insurance companies sue schools for PIP claim reimbursements?
Florida lawmakers modified the no-fault auto insurance law to cover school bus injuries under parents’ auto insurance back in 1997.
The goal of the modification was to provide a way for school kids injured in school bus accidents to have some of their medical bills covered by their parents’ auto insurance carrier.
Since then, there have been conflicting court decisions when insurance companies sue schools and districts for PIP claims reimbursement.
On July 3, 2024, the 4th District Court of Appeals ruled that school districts retain sovereign immunity from such suits, conflicting with a 2019 2nd District Court of Appeals decision.
The Florida Supreme Court will likely have to resolve this issue.
The 4th District got it right, said Robert Hauser, attorney for the Florida School Board’s Insurance Trust. Hauser argued that the law intended to shift costs from schools to insurers. The unclear language of the law creates a necessity to obtain clarification by the court or legislature.
“Everyone knows why the 1997 law was written,” he said Monday. “It was to shift costs away from schools and to insurance companies.”
“That exclusion meant that injuries sustained on a bus by a public school pupil were subject to the Florida tort system rather than the No-Fault system, which was perceived to be more quick and efficient,” and “The goal of the legislative tweak was to shift payments for most injuries on school buses away from the school district’s liability insurance under the tort system and instead to parents’ private PIP insurance,” Hauser wrote.
Fernandez Law Group’s team of Award Winning Tampa Personal Injury Lawyers work aggressively when seeking compensation for injuries and damages and have recovered millions of dollars in settlements for hundreds of clients all over Florida.
Can insurance companies sue schools?
In Florida, insurance companies sue schools. However, the context and specifics that determine whether or not they are legally able to depend on various factors. Here are some key points to consider:
- Insurance Claims: If a school has an insurance policy, the insurance company may pay for damages resulting from a lawsuit against the school (e.g., for negligence) and might seek reimbursement from the school if they believe the school is liable.
- Subrogation: Insurance companies often have the right to pursue subrogation, which means they can step into the shoes of the insured (in this case, the school) to recover costs paid for claims. This could happen if the school was negligent and the insurance company believes it should not have to cover the loss.
- Liability Claims: Schools can be held liable for certain incidents, such as injuries that occur on school property. If the school is sued and the insurance company pays the claim, they may then choose to take action against the school depending on the policy terms and circumstances.
- Sovereign Immunity: Florida has laws regarding sovereign immunity, which can limit lawsuits against public entities, including public schools. This means that claims against schools may be subject to caps on damages or may require specific procedures to pursue.
- Private Schools: Different rules may apply to private schools, as they may not enjoy the same protections as public schools.
In summary, while insurance companies sue schools in Florida, the specifics depend on the nature of the claim, the type of school (public vs. private), and the insurance policy terms.
