Insurance coverage is all about managing risk. Municipalities face many of the same risks as private citizens, such as the liability risk of dangerous conditions on the municipality’s property causing injuries or property damage to another party or the risk of theft, fire or natural disaster. 

Municipalities also face more unique risks associated with managing employees, protecting the health and welfare of citizens, civil rights violations, maintaining infrastructure and managing multiple different types of property spread out over a large geographic region. Insurance coverage protects municipalities and the citizens who fund them from potential financial disasters associated with these risks. Insurance can not address every type of risk that a community may face, but it can mitigate many of them.

General Liability

General liability coverage protects a municipality against financial losses caused by damages the municipality is legally obligated to pay. These damages commonly occur due to the negligence of the municipality or its employees in properly maintaining property owned by the municipality, including public swimming pools, parks, roads, and sidewalks. 

Crime Insurance

Municipalities face both internal and external crime threats. This coverage protects against losses caused by criminal activities, such as theft, burglary, embezzlement, unauthorized funds transfers or fraud. Officials may also opt to purchase a separate policy that protects specifically against damages caused by cybercrimes.

Employment Practices

This coverage provides financial protection for losses caused due to claims of harassment, discrimination, unfair discipline, libel, slander, wrongful termination or hiring, defamation, invasion of privacy or breach of contract. Many insurance companies offer this coverage as part of a Public Officials Liability policy. These policies provide coverage for employment practices liability and public entity management liability. 

Workers Compensation

Because municipalities are also employers, they are must provide workers’ compensation coverage for employees. This coverage pays for medical bills, lost wages, disability and other damages suffered by employees as a result of a work-related injury or illness.

Law Enforcement Liability Insurance

Law enforcement liability insurance covers personal injury, bodily injury or property damage that law enforcement causes through its wrongful actions on behalf of a public entity. It applies to law enforcement activities or operations conducted by police departments, sheriff’s agencies or other public safety organizations, except for fire departments and districts.

Automobile Insurance

Employees for public entities are responsible for operating a unique mix of vehicles, such as fire trucks, police cars, buses, ambulances and street maintenance vehicles. Public sector automobile coverage protects against damages caused by the negligent operation of these vehicles.

Municipalities are employers, property owners and public entities with a unique collection of responsibilities and liabilities that require creative insurance solutions. Insurance professionals must ensure that municipal insurance policies provide adequate coverage for all of the varying risks public entities face.

About PGUI

Professional Governmental Underwriters, LLC., is a full-service risk management company dedicated to assisting public, educational and non-profit entities in the management of their professional liability exposures including educators liability insurance. We are dedicated to providing state-of-the-art professional underwriting management and loss control advisory services on behalf of our designated carriers. For more information, call us toll-free at (800) 586-6502.

Social Title: Important Insurance Coverages All Municipalities Should Purchase

Social Description: Municipalities face a unique mix of risks that require a unique approach to risk management and mitigation, including these essential insurance coverages.