Red Bank, a city with a $5.1 million annual budget, faces five lawsuits seeking a combined $16 million, but that may not be the scariest part: The city’s liability insurance won’t cover any damages levied by courts.
“We’re responsible,” Red Bank City Manager Chris Dorsey said. “But just because you have a lawsuit doesn’t mean you have all the facts of the case.”
He declined to elaborate.
Red Bank gets its insurance through the Tennessee Municipal League Risk Management Pool, which insures about 490 other municipalities, housing authorities and utility companies. Last fiscal year, Red Bank paid $44,384 in insurance payments. It budgeted $46,000 for payments in the current year.
Dawn Crawford, president of the insurance pool, said the annual premiums go toward “discovery, depositions, everything else related to defense,” but not damages.