BY: KRISTEN DRAKE
In recent months, two California municipalities, Santa Monica and Los Angeles County, have faced staggering financial liabilities stemming from decades-old abuse claims. According to the LA Times, Santa Monica has already paid out over $229 million in settlements, with more than 180 claims still pending. Meanwhile, LA County is grappling with a historic $4 billion settlement tied to over 6,800 childhood sexual abuse claims dating back to 1959. These figures are not just eye-popping, they’re budget-breaking.
But what if the past could help pay for the present? That’s where insurance archaeology comes in.
What Is Insurance Archaeology?
Insurance archaeology is the practice of locating and reconstructing historical insurance policies, often decades-old, that may respond to current liabilities. These policies, especially occurrence-based general liability or excess liability coverage, can still provide financial relief for claims arising from events long past. The challenge? These policies are often lost, buried in archives, or tied to entities that no longer exist.
PolicyFind specializes in uncovering these hidden assets and works closely with its municipal clients to recover millions in coverage that would otherwise go untapped.
How Historical Coverage Could Ease Today’s Burden
In response to the fiscal emergency looming over Santa Monica, Kristen Drake, President of PolicyFind, reached out to city officials with a compelling proposition: leverage historical insurance coverage to support survivors and stabilize the city’s finances. Many of the claims stem from alleged acts in the 1980s, a period when the city likely held occurrence-based liability policies. If located, these policies could provide coverage for both legal defense and settlement costs.
While it’s unclear whether Santa Monica has previously pursued insurance archaeology, the approach has proven effective elsewhere. PolicyFind has helped other municipalities recover millions through historical insurance research, including recent work with several cities, towns, and counties in New Jersey and New York.
LA County’s $4B Settlement: A Wake-Up Call
The scale of LA County’s settlement is unprecedented. Officials anticipate paying hundreds of millions annually through 2030, and millions more through 2050. With property tax revenues slowing and wildfire recovery costs mounting, the county faces a long-term budget crisis.
Insurance archaeology offers a path forward. By reconstructing historical coverage and placing carriers on notice, counties can potentially offset these costs, without cutting essential services or raising taxes.
Why Insurance Archaeology Matters Now More Than Ever
Legacy claims are flooding in. Budgets are buckling. But historical insurance coverage can still pay out—if you know where to look.
- Legacy Claims Are Surging: Laws like AB 218 in California and SB 477 in New Jersey have opened the door for claims dating back decades.
- Budgets Are Stretched Thin: Post-pandemic recovery, inflation, and climate-related disasters have left cities financially vulnerable.
- Historical Coverage Still Counts: Occurrence-based policies don’t expire with time. If the incident occurred during the policy period, coverage may still apply.
PolicyFind: A Proven Partner
With a specimen policy library, corporate history research capabilities, and a track record of success, PolicyFind is uniquely positioned to help cities like Santa Monica and LA County navigate these challenges. Their work isn’t just about finding old paperwork; it’s about reconstructing the past to protect the future.
Final Thought
As municipalities across the country face mounting liabilities from legacy claims, insurance archaeology is no longer a niche service; it’s a fiscal necessity. The past may be painful, but with the right tools, it can also be part of the solution.
Municipalities like Santa Monica and LA County don’t have to shoulder these costs alone. If your municipality is facing legacy claims, don’t leave historical coverage unexplored. Contact PolicyFind today to uncover hidden insurance assets and secure the financial support you need to protect your future.