Public Officials Liability & Employment Practices Liability

Who needs this coverage?

This protection is needed by any municipal governmental entity including, but not limited to, cities, towns, townships, boroughs, villages, authorities, special service districts and commissions. All persons who were, now are, or shall be lawfully appointed officials of the public entity, should have this coverage. Also at risk are members of commissions, boards or other units operating by and under the jurisdiction of the public entity and all employees and volunteers of such public entities.

For someone who is in the above group, what are the risks?

Suits can be brought against you for discrimination in selecting, promoting, disciplining or dismissing employees. Mismanagement of, or improper administration of, funds, grants, or budgets and improper granting or denying of franchises, permits or licenses are other targets of recent litigation. Zoning approvals or denials are also exposures. There is also an exposure to claims against failure to protect public trust, including failure to properly insure, attend meetings or to examine documents. It seems as if there’s nothing about public service that is not at risk.

A significant portion of the workforce is employed by some type of governmental entity whose purpose is to provide certain services. All decisions made by public officials, regarding business and building permits, zoning, employment practices and many seemingly unimportant everyday activities carry the potential of a devastating lawsuit. A need has arisen for a policy that covers both the liability of the public entity itself and the liability of the individuals who act on behalf of the entity. With the increasing number of suits and the large awards, you need protection from financial loss.

The leading causes for litigation today stem from employee dismissal, discrimination, land use and contract disputes. PGU will put together a Public Officials program that meets your specific requirements. PGU programs cover actions or decisions alleging financial loss or the violation of civil rights, and cover legal fees incurred in the defense of the entity or public official.


InsurerBest RatingAvailabilityEligible AccountsMin. PremiumMin. DeductibleLimitsSelected Policy Features
“A” rated (Excellent) or better
Admitted paper in AL, DE, GA, IL, KY, ME, MI, MO, NJ, NY, NC, OH, PA, TN and WI
Surplus Lines everywhere else
City, Borough, Village, Town, Township and County governments with populations less than 100,000.
Larger entities considered on a special acceptance basis.

Special service districts including but not limited to authorities/utilities such as water/sewer, housing, airport, port, transit, electric (not generating power), gas, financing, economic / redevelopment / industrial development

up to $5,000,000
Claims made coverage
Duty to Defend / Pay on Behalf
Consent to settle clause with 60% co-insurance
Third Party EPL coverage
Defense costs in addition to limits
Bi-Lateral ERP for 1, 2 and 3 years
Punitive Damages not excluded (where allowable by law)
Wrongful acts definition includes civil rights violations
Employment Practices coverage included
Separate limits for Public Officials Wrongful Acts and Employment Practices Wrongful Acts
Personal Injury coverage included
Coverage available for back pay / front pay and defense of employment practices claims seeking non-monetary relief
Non-cancelable by carrier except for non-payment of premium
True worldwide coverage