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N.Y.’s Horace Mann School Sues Insurers Over Coverage

New York City prep school Horace Mann sued units of American International Group Inc. 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. yesterday in New York State Supreme Court in Manhattan. The suit seeks a declaration that the insurers are responsible for all losses and damages incurred by the school as a result of settlements with two victims and more than $1.05 million in compensatory damages.