Program Summary

What is it?

The Educators Liability Trust Fund was established July 1, 2013, to provide liability protection for employees of Alabama public school boards acting in line and scope of their job requirements. Like the State Insurance Fund, the ELTF operates much like an insurance company. However, it does not provide insurance but administers statutory fund benefits.

Definition of Covered Employee

The Act 2013-215 and the Program Guidelines define covered employees as active teachers, principals, and other education employees who are employed by a Local Education Unit and required to hold a certificate issued by the State Superintendent of Education and Student Teachers, and support personnel such as maids, custodians, adult bus drivers, lunchroom or cafeteria workers, secretaries, clerks, clerical assistants, maintenance workers and other non-certified personnel.

Reporting Educators Liability Claims

The Program Guidelines outline the Notice requirements and other areas pertinent to claims.

• Section 5 Notice of Occurrence or Accident
  

  In the event of an occurrence or accident believed to be covered by the fund, every covered employee shall be responsible for providing written notice, using a form approved by the Division of Risk Management, as soon as practicable, but not later than 30 days after an accident or occurrence, to the Superintendent of the Local Education Unit that employs the covered employee and to the Division of Risk Management, P.O. Box 303250, Montgomery, AL 36130-3250. This notice includes, but is not limited to, particulars sufficient to identify the covered employee and other information with respect to the time, place and circumstances of the occurrence or accident, the names and addresses of the persons alleged to be injured or property damaged, all available witnesses and any reports of internal investigations of the occurrence or accident.

  Note: Claim forms are available on our website at riskmgt.alabama.gov under the forms section.

• Section 6 Suits or Demands
  

  If a claim is made or suit is filed against any covered employee, the covered employee shall, upon being served, immediately forward the original suit papers or other appropriate documents to the Division of Risk Management, P.O. Box 303250, Montgomery, AL 36130-3250. Copies of the suit and other documents must be sent to the Superintendent of the local education unit that employs the covered employee. Claim forms are available on our website at www.riskmgt.alabama.gov under the forms section.

  All correspondence should be directed to:
  Department of Finance
  Division of Risk Management
  Educators Liability Trust Fund
  777 South Lawrence Street
  P.O. Box 303250
  Montgomery, Alabama 36130-3250
  Attn: EL Senior Claims Representative
  

Frequently Asked Questions and Answers About The Educators Liability Trust Fund

Should Risk Management be informed only after a lawsuit is filed?

No. Any incident which could conceivably lead to the filing of a lawsuit against a covered employee should be reported immediately. Early settlement of a serious problem could save the State great expense, and if Risk Management has knowledge of a problem we can assist in preventing future similar mishaps.

Is there an insurance policy that states all the conditions of coverage?

The Fund is not insurance, but a fringe benefit for covered employees. There is no insurance contract or policy, but there is a set of written guidelines which is similar to an insurance policy that sets out conditions of coverage. A copy can be obtained from the Division of Risk Management (under the forms section at www.riskmgt.alabama.gov).

Will the Fund cover any judgment returned?

No. The Covered Employee is responsible for any amount in excess of the limits.

What are the limits of coverage?

The limits are $1,000,000 per occurrence, regardless of the number of claimants or the number of employee/defendants. This amount also includes all defense costs paid by the Fund. In the event that a single occurrence, as determined by the Risk Manager, is later judicially determined to be more than one occurrence, the limit is $1,200,000.

After suit papers are forwarded to Risk Management, how will I be notified of coverage?

The complaint will be reviewed and it will be determined whether the employee is (1) covered, (2) not covered, or (3) will be defended with reservation of rights until coverage can be determined. A letter stating which of the above is applicable will be sent to the employee and the attorney appointed by the Fund.

What does "defend with reservation of rights" mean?

If the wording of the complaint makes it unclear whether the allegations are covered or not covered, the Fund will pay for defense costs until it can be determined whether the allegations are covered or not covered. If a claim is found to be not covered, the fund reserves its rights to withdraw defense and indemnity.

What exception of coverage should I be aware of?

Liability coverage is not extended for non-educational activities and field trips, including but not limited to cruises, theme or water parks, lake outings and other trips devoted primarily to recreational activities.