Secure your public assets, employees, and the general public with municipality insurance
Municipality insurance, also known as municipal insurance, is a type of insurance specifically designed to protect municipal governments (such as cities, towns, or counties) and other public entities from a variety of risks and liabilities associated with their operations. This type of insurance provides comprehensive coverage to safeguard public assets, employees, and the general public.
Running a city or township has its own unique risks
Local governments don’t operate like most other businesses. There are multiple properties to consider, including administrative offices, school buildings, public works equipment depots, and more. The risks associated with each differ based on what kind of work is being done inside, who is visiting, and what types of furniture, machinery, and materials it might contain.
Important coverages for any municipality.
As another example, consider all the different people who are employees of the town or city. From clerical staff and maintenance workers to law enforcement and first responders, a public entity has many liability and workers’ compensation needs. Employment practices liability insurance (EPLI), as well as abuse and molestation policies, are also important for governmental entities. Here are some specific coverage options you might want to consider in your municipality insurance policy:
Key Coverages in Municipality Insurance
General Liability Insurance
- Bodily Injury: Liability protection covers medical expenses and legal fees if a member of the public is injured on municipal property.
- Property Damage: Pays for damages to third-party property caused by municipal operations.
- Personal and Advertising Injury: Protects against claims of libel, slander, or false advertising.
Public Officials Liability Insurance
- Wrongful Acts: Covers legal fees and damages arising from alleged wrongful acts by municipal officials, such as discrimination, wrongful termination, or violations of rights.
- Errors and Omissions: Protects against claims related to errors or omissions in the performance of official duties.
Law Enforcement Liability Insurance
- Misconduct Claims: Covers legal costs and settlements for claims of wrongful acts, including excessive force, false arrest, or civil rights violations by law enforcement officers.
- Defense Costs: Provides coverage for the legal defense of law enforcement personnel.
Property Insurance
- Buildings and Contents: Protects municipal buildings, equipment, and other assets against risks or loss caused by fire, theft, vandalism, and natural disasters.
- Infrastructure: Covers damage to infrastructure, including roads, bridges, and utilities.
Workers’ Compensation Insurance
- Employee Injuries: Covers medical expenses and lost wages for municipal employees injured or becoming ill due to their job.
- Employer Liability: Protects the municipality against lawsuits related to workplace injuries.
Automobile Insurance
- Municipal Vehicles: Covers municipal vehicles for damage and liability arising from accidents.
- Liability Coverage: Protects against legal liability if a municipal vehicle causes injury or property damage.
Cyber Liability Insurance
- Data Breach Response: Covers costs associated with responding to a data breach, including notification, credit monitoring, and public relations.
- Cyber Extortion: Covers ransom payments and related expenses in the event of a ransomware attack.
- Liability: Covers legal fees and settlements if municipal data is compromised.
Environmental Liability Insurance
- Pollution Cleanup: Covers costs associated with cleaning up pollution or environmental contamination.
- Third-Party Claims: Protects against claims from third parties for bodily injury or property damage due to pollution.
Special Event Insurance
- Event Coverage: Provides liability coverage for public events organized by the municipality, such as festivals, parades, or concerts.
Flood Insurance
- Flood Damage: Covers damages to municipal properties and infrastructure caused by flooding.
Protection for what your community relies on.
If your municipality is responsible for the utilities that residents rely on, such as sewer, water, or electricity, there is a risk of environmental hazards and contamination, failure to supply, and equipment breakdown. Coverage that takes these considerations into account is essential.
The Benefits of Municipality Insurance
- Comprehensive Protection: Offers a wide range of coverages to address the diverse risks faced by municipalities, from property damage to liability claims.
- Risk Management: Helps manage financial losses due to lawsuits, property damage, cyber-attacks, environmental incidents, and other unforeseen events.
- Regulatory Compliance: Ensures compliance with legal and regulatory requirements for insurance coverage.
- Public Trust: Demonstrates a commitment to the safety and well-being of the community, enhancing public trust and confidence in municipal operations.
- Financial Stability: Protects the financial health of the municipality, allowing it to continue providing essential services even after adverse events.
Coverage options are narrowed down for your municipality
Even though there are obvious coverage needs that go beyond a typical business, there are certain risk exposures that require general business insurance coverage. Municipalities need to consider a variety of other coverage options just like any other business including cyber liability, general liability, employee dishonesty, and fleet insurance. Every municipality is different, and your municipality needs insurance solutions that are unique to your community.
Want to learn how municipality insurance may help protect your community? Contact us to discuss your risks and insurance needs, and to go over your coverage options.
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Property Insurance
Risk Factor
Your township building is susceptible to many perils throughout the year such as wind, rain, collapse, fire, and smoke. When significant damages to the building occur, how will you replace the building and its contents to continue servicing the township?
Solution
Property insurance can help protect the property your township owns or leases, including things like equipment, supplies, furniture, and fixtures. Whether you own your building or lease your workspace, property insurance can be purchased separately or can be combined with other necessary coverage to protect your business’ physical assets.
Abuse and Molestation
Risk Factor
There are hundreds of reports each year of children being sexually abused by adults. This exposure is excluded from the standard general liability policy form.
Solution
Obtain the proper abuse and molestation coverage to protect the municipality from the possibility of significant financial loss in the event of an allegation. In addition, have written documentation within the municipality to address how to prevent sexual abuse from happening, how to report it to authorities, and what to do in an event of an allegation.
Sewer Authority
Risk Factor
If a municipality runs the community sewer and wastewater plant, it can be exposed to many risks such as failure to supply, water contamination, notification expenses, and others.
Solution
A sewer authority coverage liability form can cover the professional activities that go along with managing a wastewater treatment facility. Some forms include errors and omissions, failure to supply utilities, and other necessary coverages such as equipment breakdown for the facility.
Public Officials Liability
Risk Factor
Any municipality that has elected public officials or governing boards (park boards, historic boards, etc.) has exposure for the financial and other decisions the boards make, which affect the entire population of that municipality.
Solution
A municipality can be held liable for wrongful acts and decisions made by elected public officials and governing boards and will need to defend against such allegations. Having a liability policy that can protect against these risks is essential. This can also include employment practices liability as well.
Law Enforcement Liability
Risk Factor
Having a municipal police force has many areas of liability, especially in today’s legal environment. Police can be held liable or sued for wrongful detention, police brutality, and other accusations. Unfortunately, these claims normally carry a high dollar value.
Solution
Law enforcement liability provides coverage for the municipality and its police officers for allegations that may arise from an officer’s actions. This coverage can also include a line of duty accidental death coverage and a moonlighting endorsement.
Flood and Earthquake Coverage
Risk Factor
Depending on your location and surroundings, your borough could be in an earthquake and flood-prone area. The common property policy excludes coverage for these types of claims, leaving a municipality with significant structural or water damage and no coverage.
Solution
Adding earthquake and/or flood policies can cover property claims when those disasters occur. Depending on the zone you occupy, limits can go up to $10M and will include a deductible per occurrence.
Workers’ Compensation
Risk Factor
If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place.
Solution
Workers' compensation and employers liability insurance protect your employees should a job-related injury or sickness occur during the course of employment. Since benefits vary by state law, make sure your insurance agent is aware of all physical locations your business operates in, as well as all physical locations where you hire your employees.
General Liability Insurance
Risk Factor
Water on the floor, slippery entry in the winter, broken glass/hazardous debris, etc. These can all be accidents waiting to happen on municipal property. Claims may arise due to bodily injury, property damage, personal injury, and more.
Solution
General liability insurance is an absolute necessity. It provides broad coverage when the municipality is deemed responsible and liable, and will also pay to defend any covered lawsuit or action regardless of its merit.
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