§ 28973 District System Insurance

• •The district can buy insurance to protect the system or any part of it from accidents or damage.
• •This insurance helps pay for repairs or replacements if something bad happens to the system.
• •It’s like when you buy insurance for your car in case you get into a crash.

A big storm damages part of the district’s water system, breaking pipes and causing leaks.

Because the district has insurance, they can file a claim to get money to fix the broken pipes instead of paying for it all themselves.