According to Chris Dolmetsch of Bloomberg, N.Y.’s Horace Mann School Sues Insurers Over Coverage

New York City prep school Horace Mann sued units of American International Group Inc. (AIG) saying they refused to defend and indemnify the school for damages stemming from sex-abuse claims by former students against teachers.

The Bronx school sued AIG’s Granite State Insurance Co., New Hampshire Insurance Co. and Chartis Claims Inc. today in New York State Supreme Court in Manhattan, seeking more than $1.05 million in compensatory damages.

This is a new twist to the case.   Horace Mann apologized for some of its teachers victimizing students, and now it claims that it is itself a victim of a negligent insurance company.