Camp Mystic eyes insurance in claims resolution - Business Insurance

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Camp Mystic eyes insurance in claims resolution - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Camp Mystic eyes insurance in claims resolution by Claire Wilkinson Search and rescue team members look a year ago for missing people amid debris in the Guadalupe River, near Camp Mystic, following deadly flooding./REUTERS Auto liability , Catastrophes , Claims Disputes , General liability , Marine , P/C Insurers , Property , Workers Comp Coverage AIG Jul 8, 2026 Camp Mystic expects to tap available insurance to help resolve wrongful-death and other claims arising from the July 4, 2025, flooding that killed 27 campers and counselors, according to a bankruptcy court filing last week. The camp’s contemplated restructuring would include a claims process designed to address litigation and other claims “through the marshalling of available insurance,” Karen Nicolaou, a managing director at corporate advisory firm Harney Partners and the debtors’ proposed chief restructuring officer, wrote in a July 2 declaration filed in the U.S. Bankruptcy Court for the Southern District of Texas. The filing did not disclose the amount of insurance available to satisfy claims. Camp Mystic maintains six insurance policies covering commercial general liability, commercial property, workers compensation, commercial auto, crime and fidelity, and commercial inland marine risks, according to a separate July 2 filing. AIG unit Granite State Insurance Co. provides the camp’s commercial general liability, commercial property, crime and fidelity, and commercial inland marine coverage. AIG unit New Hampshire Insurance Co. provides commercial auto coverage and Texas Mutual Insurance Co. provides workers compensation coverage, according to the policy schedule included in the filing. The policies, which incepted March 1 and have terms ranging from one to four years, were placed by Austin-based broker Hertel Insurors Group, which the filing identifies as Hertel Insurers Group. The camp paid about $156,391 in annual insurance premiums in the 12 months before filing for bankruptcy protection. The filing states that the premiums include amounts accrued under policy terms running from 2026-2027 through 2026-2030, depending on the coverage. A July 2 bankruptcy court order authorized the debtors to maintain the policies and continue paying premiums, deductibles and brokerage fees during the Chapter 11 proceedings. AIG, Texas Mutual and Hertel did not immediately respond to requests for comment. Camp Mystic and affiliated entities filed for Chapter 11 protection on June 24, citing total liabilities of $10 million to $50 million and total estimated assets of between $1 million and $10 million. The Chapter 11 filing followed the July 4, 2025, flooding that killed more than 130 people across the Texas Hill Country, including 27 campers and counselors at Camp Mystic and camp director Richard “Dick” Eastland. The flood caused catastrophic loss of life and extensive physical damage to the camp’s Guadalupe River campus and gave rise to multiple wrongful-death lawsuits, significant governmental and regulatory attention, and severe operational and liquidity pressure on the debtors, Ms. Nicolaou wrote. The debtors commenced the Chapter 11 cases to preserve the value of the business, provide a single forum in which claims arising from the flood may be addressed and protect the interests of employees, campers and their families, creditors and other stakeholders, she wrote. The debtors said they are defendants in five lawsuits arising from the flood, each pending in Travis County, Texas, and consolidated before the 459th Judicial District Court. The camp, founded in 1926 near Hunt, Texas, has not reopened for the 2026 season following the flood. After state regulators denied its initial license application, Camp Mystic announced it would not seek to reopen this season. Approximately 863 children had committed to attend camp before the 2026 season was canceled, with tuition of about $3,475 per camper per session, according to Ms. Nicolaou’s statement. In a report issued last month, Texas House and Senate investigators found Camp Mystic lacked a state-required emergency operations plan and identified failures in communications and emergency preparedness before the flood. Following the disaster, Texas lawmakers approved legislation strengthening camp safety requirements, including emergency planning, staff training, communications and evacuation procedures, which Gov. Greg Abbott signed into law in September. 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