BUTLER TWP — The Butler School Board Monday voted to switch insurance providers and authorized its attorneys to file a lawsuit, if necessary, to recover legal costs incurred fighting a lawsuit filed by its current provider.

Starting in July, the district will be insured by CM Regent Insurance, which was formerly the Pennsylvania School Board Association insurance company.

The district had been insured by the Netherlands Insurance of Boston and Peerless Insurance of Keene, N.H., both of which are subsidiaries of Liberty Mutual.

These two companies filed a lawsuit against the district earlier this year, seeking a declaration from the district that they would not have to cover legal expenses associated with defense against a lawsuit filed by the Tait family over lead exposure at Summit Township Elementary School. Judge Arthur Schwab ruled in favor of the district on June 9.

The board Monday authorized its legal representation to file a bad faith lawsuit, if deemed necessary, against the insurance companies to recover those costs.

Solicitor Tom King reported Monday that the lawyers for the insurance companies have stated in writing that they will not reimburse the district for its legal fees fighting their lawsuit.

“Their lawyers have written back saying they don't have to pay for that,” King said. “We don't agree with that and we don't think Judge Schwab will agree with it either.”

That includes about $40,000 incurred by the Burns White firm and also fees the district paid to the attorneys representing three former district employees named as defendants in the Tait lawsuit, Dr. Dale Lumley, Mary Wolf and Glenn Terwilliger.

The district will pay $198,619 next year for its liability and errors and omissions policies. A proposal from the Liberty Mutual companies would have cost the district $182,133.

Also Monday, the board voted to add $1 million worth of insurance against cyber attacks at a cost of $8,517 per year.