Government, Institutions And Utilities Insurance FAQ

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Get answers to small business insurance frequently questions including costs, coverages, minimum requirements, certificates & more.

Types Of Small Business Insurance

  • Includes medical payments, legal representation, and defense against libel and slander accusations.
  • Provides financial protection if an employee has a job-related accident or illness.
  • Bundles general liability insurance and commercial property into one affordable policy.
  • Pays to repair or replace your business property if it's stolen, damaged, or destroyed in a fire or natural disaster.
  • Covers mistakes or alleged mistakes on your part (errors) & failures or alleged failures to perform a service (omissions).
  • Is liability and physical damage protection for vehicles, such as cars, trucks and vans, that are used for business.
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Frequently Asked Questions About Small Business Insurance


What types of business insurance do I need?

Almost every business needs general liability and commercial property insurance at the very least. If you have any non-owner employees, you'll most likely need workers compensation insurance too as most state require it. Other types to consider are: commercial auto, professional liability, cyber liability, inland marine and others. It all depends on the risks your business faces. Read more...

How much does general liability insurance cost?

In 2019, commercial general liability costs can vary widely based on industry. Premiums are also determined by zip code and often payroll and/or gross sales. You can request a free quote to get an exact premium for your business. Read more...

How does general liability insurance work?

Having general liability is the basis of any business insurance program. If you can afford only one commercial insurance policy for your small business - then you should get a commercial general liability policy, because it offers protection against a wide range of unexpected risks, and will form the foundation of your business financial protection. Read more...

What is a Certificate of Insurance?

A Certificate of Insurance (COI) is proof of coverage. It verifies that you have insurance coverage for your small business, & contains information on types and limits of coverage, insurance company, policy number, named insured, and the effective date of the policy. Read more...
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Government, Institutions And Utilities Insurance FAQ Information

Government, Institutions And Utilities Insurance FAQ

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.

What Is An Institution?

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:

  • Auditoriums
  • Cemeteries
  • Churches and other Houses of Worship
  • City-County Buildings
  • Community Centers
  • County Administration Offices
  • Courthouses
  • Electric Utilities
  • Experimental Stations
  • Fairs
  • Fire Department Buildings
  • Government and Institutional Buildings
  • Jails
  • Law Enforcement Entities
  • Libraries
  • Municipalities
  • Museums
  • Orphanage
  • Park Buildings
  • Penal Institutions
  • Public Buildings
  • Reformatories
  • Stadiums
  • State Capitol Buildings
  • Townships

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.

Types Of Government, Institutions And Utilities Insurance Policies

Following are some suggested commercial policies and coverages applicable for these operations:

PACKAGE POLICIES

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)
PROPERTY COVERAGES

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
INLAND MARINE 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:

  • 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 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:

  • 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
SURETY 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:

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

  • 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
PROFESSIONAL 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:

  • 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
COMMERCIAL AUTO 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:

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

  • 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
EXCESS AND UMBRELLA 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:

  • Excess Liability Coverage
  • Umbrella Coverage
AVIATION 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:

  • Aircraft Liability Coverage
  • Aircraft Passenger Liability Coverage
  • Aircraft Physical Damage (Hull) Coverage
  • Aviation General Liability Coverage
  • Civil Air Patrol Coverage
  • Hangar keepers Liability Coverage
OCEAN MARINE 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:

  • Ocean Marine Hull Coverage
  • Protection and Indemnity Coverage
  • Ship Repairers Legal Liability Coverage
  • Wharfingers Liability Coverage
  • Yacht Coverage
SPECIALTY 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:

  • 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

Government, Institutions And Utilities Insurance FAQ - The Bottom Line

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.

Frequently Asked Questions By Industry

Learn about the coverages available for specific industires with the Insurance FAQs below:

Government, Institutions And Utilities Insurance FAQ
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