Frequently Asked Questions About Small Business Insurance
Government, Institutions And Utilities Insurance FAQ. Cooperative efforts between insurance professionals and public officials have led to the satisfactory arrangement of coverages for public properties that may include large building schedules spread over a number of locations and geographic areas.
Liability insurance protection is a matter of much greater concern. As governmental and charitable institutional immunity continues to erode, the onslaught of lawsuits makes adequate liability protection essential. Public utilities have unique insurance needs usually best handled by specialists in their field.
Because government entities are becoming more inventive in raising money, they are involved in activities that may not appear to be government-related so that they may require coverages that at first glance do not seem appropriate for them.
We wanted to provide a deeper dive into small business insurance to help our readers get a better understand of the commercial insurance policies they want and need with the Government, Institutions And Utilities Insurance FAQ.
Read the Government, Institutions And Utilities Insurance FAQ to learn what type of commercial insurance coverages are right for your operation - including liability, property, workers compensation and other specialty policies.
According to Dictionary.com - an institution is, "a society or organization founded for a religious, educational, social, or similar purpose.."
Government, Institutions And Utilities include - but are not limited to - the following types of businesses:
You can reference the Insurance Definitions, Dictionary And Glossary to better understand the commercial insurance policy terms and language used in our Small Business Insurance FAQs.
Following are some suggested commercial policies and coverages applicable for these operations:
Package policies are the most convenient and cost effective way of combining a number of coverages together in one policy but the approach may not be appropriate for many classes in this category. Many must place coverages on a monoline basis because of the complexity of insuring the liability exposures.
The property schedules are often considered attractive but the best company for the property may not have the expertise or appetite to write the liability exposures.
Often, however, some coverages can be packaged and that approach should be encouraged for simplicity and potential cost savings.
Types Of Government, Institutions And Utilities Package Policies:
The physical assets of the entities in this category are frequently insured utilizing high deductibles as a way of reducing the costs of the insurance. An output policy should be considered because they are an excellent means of insuring multiple properties and offer the advantage of flexible rating plans that reward spread of risk.
Business income coverage is not usually a major coverage consideration, because the operation must continue under any circumstances.
Extra expense coverage should be considered instead. An exposure analysis is usually necessary to determine the optional coverages that should be considered.
Types Of Property Coverages:
Entities in this category are not limited to specific locations where their activities take place. For this reason, exposures should be reviewed carefully to determine the most appropriate inland marine and property coverage forms to consider for the exposures present.
The scheduled property and commercial articles floaters may be the most appropriate coverage forms for a number of different exposures.
Types Of Inland Marine Coverages:
Crime coverage forms used for government entities exposures are similar to those used by commercial entities with some small but very important differences. Most of the operations in this category have significant assets that could be seriously compromised by employee theft so a thorough review of potential employee theft situations should be evaluated and appropriate limits of coverage purchased.
Types Of Crime Coverages:
Governmental entities may require surety bonds from time to time but they may also be required to supply bonds. The most common of these is the public officials bond. All operations in this category may need one or more of the bonds described below:
Types Of Surety Coverages:
Government and not-for-profit entities once operated under various concepts of immunity and did not need liability insurance coverages. While these doctrines still exist, they have experienced significant modification, especially when an entity provides services that can also be handled by a private commercial enterprise.
Types Of Liability Coverages:
Government entities employ many professionals and may be held legally liable and responsible for their mistakes, errors and omissions. The entity should prepare a list of professional services offered to determine the professional liability coverages needed.
Types Of Errors And Omissions (E&O) Coverages:
Government entities often self-insure their vehicle physical damage exposures and depend on sovereign immunity to protect their liability exposures. As immunity becomes less dependable, a better choice may be high deductibles or self-insured retentions in the event of a significant occurrence.
Types Of Business Auto Coverages:
By law, employers are required to provide coverage for injuries sustained by their employees while on the job through a workers compensation policy. Government entities are not exempt from these workers compensation requirements or statutes.
In some cases, a larger entity may decide to self-insure and provide the state with a self-insurance bond instead.
Types Of Workers Comp Coverages:
Higher liability limits should always be carefully considered, especially if the government entity is involved in activities classified as or that are considered outside sovereign immunity statutes.
Types Of Excess Liability Coverages:
Entities included within this category may use owned or leased aircraft to assist them in performing their functions. If so, aircraft coverages are necessary. If the entity also operates an airstrip or airfield, aviation general liability and hangar keepers liability coverages are also needed.
Types Of Aviation Coverages:
Government entities situated adjacent to navigable bodies of water could operate docks, piers and other facilities that could also include ownership and operation of a variety of boats and vessels. The operations performed and the exposures created by those operations should be listed and reviewed to determine the types of ocean marine coverage needed.
Types Of Ocean Marine Coverages:
The larger the entity, the more likely unusual exposures will exist. The services, exposures and activities provided must be evaluated to determine the additional coverages from the following list that may be needed.
Types Of Specialty Coverages:
There are many commercial insurance policies available for Government, Institutions And Utilities. To find out what types of coverage your business needs, speak to a professional insurance broker with experience in insuring these types of entities.
Learn about the coverages available for specific industires with the Insurance FAQs below: