Government, Institutions And Utilities Insurance FAQ

• At the minimum, government, institutions and utilities need prossional liability insurance or errors and omissions (E&O).
• Also most government, institutions and utilities need general liability insurance.
• If they have employees they will need workers compensation in most states.
• If they have vehicles registered to the business, or use vehicles for the business purposes, they will also need commercial auto.
• There are also other specialty coverages and endorsements that might be needed based on their 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:

• Commercial Package Policy (COP)

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:

• Building
• Business Personal Property
• Personal Property of Others
• Improvements and Betterments

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:

• Accounts Receivable Coverage
• Bailee Customers Coverage
• Broadcasting Tower/Equipment Coverage
• Builders Risk Coverage
• Commercial Articles Floaters
• Contractors' Equipment Coverage
• Difference in Conditions (DICE) Coverage
• Electronic Data Processing Equipment Coverage
• Fine Arts Coverage
• Installation Coverage
• Scheduled Property Coverage
• Signs Coverage
• Theatrical Property Coverage
• Transportation Coverage
• Transportation Coverage
• Valuable Papers and Records Coverage

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:

• Computer and Funds Transfer Fraud Coverage
• Employee Theft Coverage
• Forgery or Alteration Coverage
• Inside The Premises-Theft of Money and Securities Coverage
• Inside The Premises-Robbery or Safe Burglary of Other Property Coverage
• Money Orders and Counterfeit Money Coverage
• Outside The Premises Coverage

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:

• Court Bonds
• Fiduciary Bonds
• License and Permit Bonds
• Medicare and Medicaid Provider Surety Bonds
• Miscellaneous Surety Bonds
• Notary Public Bonds
• Public Officials Bonds

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:

• Commercial General Liability (CALL) Coverage
• Employee Benefits Liability Coverage
• Employment-Related Practices Coverage
• Liquor Liability Coverage
• Owners and Contractors Protective (COP) Liability Coverage
• Railroad Protective Liability Coverage
• Special Events Liability Coverage

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:

• Accountants Professional Liability Coverage
• Architects or Engineers Professional Liability Coverage
• Beauticians and Barbers Professional Liability Coverage
• Errors and Omissions - Miscellaneous Coverage
• Forensic Liability Coverage
• Funeral Directors or Morticians Professional Liability Coverage
• Funeral Directors or Morticians Professional Liability Coverage
• Insurance Agents and Brokers Errors and Omissions Coverage
• Land Surveyors Professional Liability Insurance
• Law Enforcement Liability Coverage
• Lawyers Professional Liability Coverage
• Miscellaneous Medical Professional Liability Insurance Coverage
• Physicians, Surgeons and Dentists Professional Liability Coverage
• Registered Representative Errors and Omissions Coverage
• Safety and Environmental Consultants Errors and Omissions Coverage
• Title Abstractors Professional Liability or Errors and Omissions Coverage

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:

• Auto Medical Payments
• Business Auto Coverage
• Collision Coverage
• Comprehensive Coverage
• Garage keepers Coverage
• Hired & Non-owned Auto Coverage (HONE)
• Uninsured/Underinsured Motorists Coverage

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:

• Excess Workers Compensation Self-Insurance Bonds
• Federal Coal Mine Health and Safety Act Coverage
• Federal Employers' Liability Act (FLEA)
• Longshore and Harbor Workers' Compensation Act Coverage
• Stop-Gap or Employers Liability Coverage
• Voluntary Compensation Coverage
• Workers Compensation and Employers Liability Coverage

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:

• Excess Liability Coverage
• Umbrella Coverage

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:

• American Expatriate Coverage
• Business Legal Expense Coverage
• Cable TV Liability Coverage
• Cyber Liability Coverage
• Data Security Breach Coverage
• Directors and Officers Liability Coverage
• Educators Legal Liability Coverage
• Environmental Impairment Liability Coverage
• Fiduciary Liability (Pension, Welfare and Employee Benefit Funds) Coverage
• Identity Theft Insurance Coverage
• International Insurance Coverage
• Lead Paint Contamination Coverage
• Medical Personnel Service Agency Liability Coverage
• Nuclear Energy Liability Coverage
• Nuclear Energy Property Coverage
• Recreational Trail Liability Coverage
• Risk Retention Group Liability Coverage
• Solar Energy System Coverage
• Terrorism Insurance Coverage
• Underground Storage Tank (US) Liability Coverage
• Unmanned Aerial Vehicles (OVA) (Drones)
• Weather Coverage