Maryland Township Insurance Policy Information
Maryland Township Insurance. As a part of the public sector, township officials are exposed to a lot of risks and can face a lot of losses.
Managing fiscal policies and debt, protecting the physical safety of their residents, making sure public education received adequate investments, addressing crime; township officials are responsible for a lot.
Township buildings provide office and meeting facilities for township operations. They often have auditoriums designed for large public gatherings or for political assemblies. A council runs townships, either elected or appointed and may have a mayor or other chief official who acts as the leader.
A wide variety of services may be provided to residents in exchange for tax dollars. These services may include planning and zoning, licenses and permits, assessors', and surveyors' offices, courts, disease control, sanitation, road construction and maintenance, snow removal, and public protection such as police or fire departments.
Some townships contract utility services, such as gas, water, or electricity, for residents within their geographical area.
In order to protect themselves from any liability issues, these officials should invest in the right type of Maryland township insurance program.
What is MD township insurance? Why is it important? For more information about this vital insurance coverage, keep on reading.
Maryland township insurance protects your municipal operations and buildings from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Why Do Townships Need Insurance?
Also known as municipality insurance, Maryland township insurance coverage is an insurance program that combines coverage for the unique risks that officials face.
Township officials are responsible for a lot, and as such, they face numerous liability issues. Examples of the risks that public sector officials face include:
- Lawsuits related to employment practices, such as sexual harassment, discrimination, wrongful termination, and hostile work or volunteer environments.
- Legal issues related to police enforcement, such as failure to protect, civil rights violations, negligence, and false arrests.
- Data breaches that result in the compromise of the confidential data and personal information of employees or volunteers.
- Real or alleged errors and omissions and misstatements or misleading statements.
These are just a few of the risks that MD township officials face.
Should an employee, volunteer, or resident of the municipality that an official governs take legal action against the township, the insurance coverage that a township insurance policy provides would help to pay the related expenses, including legal representation fees and the damages that a court of law may find the defendant guilty of.
The costs that are associated with legal action can be astronomical, and as such, this type of insurance can prevent public officials and municipalities from serious financial losses.
What Type Of Insurance Do Townships Need?
A robust Maryland township insurance program will include coverage for the many risks that elected officials face.
Because insurance requirements may vary, it's best to speak with an agent who has experience insuring MD municipalities.
Examples of the coverage that township's should have include:
- General Liability: This form of coverage protects a township against any bodily injury or property damage claims that may be associated with any of the locations and operations that fall under the entity of the municipality. These injuries and property damages may occur as a result of poorly maintained roadways and sidewalks, natural disasters in which elected officials failed to practice due diligence, and even town construction activities.
- Errors And Omissions (E&O): E&O insurance coverage (also known as professional liability) protects public officials from actual and alleged errors, such as misstatements or misleading statements that an official may make while executing the duties of a public entities.
- Law Enforcement Liability: This coverage helps to cover the costs that are associated with defending police officers from various allegations and lawsuits that the public may make against police officers while they are conducting law enforcement operations and activities; failure to protect, violations related to civil rights, false arrests, and negligence.
- Cyber And Data Breach: If elected officials, employees, or volunteers of a township have access to confidential data in electronic or hard copy form and a data breach occurs, cyber and data security will help to cover any lawsuits that may arise.
- Employment Practices Liability: This type of coverage offers townships protection for claims that are made by employees and volunteers that are related to wrongful practices; sexual harassment, discrimination of any kind, wrongful termination, wrongful demotion, failure to promote, defamation, libel and slander, invasion of privacy, unfair discipline, and harassment of any kind. Employment practices liability will help to cover legal expenses, as well as any compensation that may need to be paid out.
The aforementioned coverages are a basic outline of what a robust Maryland township insurance program should provide. The specific coverage that this type of program should provide depends on the unique needs of each township.
Additionally, policy limits vary and depend on the unique needs of each township. The cost of township insurance coverage also depends on several factors.
MD Township's Risks & Exposures
Premises liability exposure is high due to services provided to residents and the public's access to the building. If tours are given, exposures increase significantly as guests may be led through areas generally "off limits" to more casual visitors.
Legislation and judicial decisions have eroded governmental immunity protection in most states. Public and life safety code compliance is very important. To prevent trips, slips, and falls, all premises must be well maintained with flooring in good condition. Adequate lighting, marked exits and egresses are mandatory. Steps must have handrails, be well lit, marked, and in good repair.
An outside service contractor should inspect elevators and escalators annually. Parking lots should be free of ice and snow. Township facilities may be a target for vandals or disgruntled citizens. Security inside the facility, as well as outside areas including owned parking areas, needs to be carefully implemented and monitored.
An evacuation plan must be in place. Personal injury losses may occur due to alleged assault, discrimination, invasion of privacy, or unlawful detention. /p>
Public officials' liability exposure can be severe. Today's political climate has seen an increase in lawsuits against government authorities for failure to perform the functions of their office, failure to account for tax funds, failure to enforce regulations, failure to follow mandated procedures, such as open bidding on contracts, bad faith, and other errors or omissions. Defense costs can be prohibitively expensive.
Workers compensation exposures are varied, from office workers to janitorial staff, building or yard maintenance workers, repair personnel, and street and road crews. Workers may incur back injuries, hernias, slips, falls, strains, or sprains.
Skin and lung irritation can result from working with cleaning chemicals and paint. Office workers may develop repetitive motion injuries. Workstations should be ergonomically designed.
There may be interactions with angry constituents or protestors. Employees should be trained to deal with difficult situations.
Property exposure is generally low. Ignition sources include electrical wiring, heating, and air conditioning systems. There may be a restaurant or cafeteria on premises. Most offices and auditoriums have extensive wiring for lighting, computers, and other electronic equipment. It must be in good repair and adequate for its use.
Township buildings may have been donated and remodeled for current use. Valuation may be a concern in older buildings with unique architectural features that may be difficult to rebuild with like construction and quality after a loss. Wiring must be up to date and the building must meet codes for its current occupancy. Smoke detectors are critical for early detection of a fire. Smoking should be prohibited.
If there is a restaurant or cafeteria on premises, all cooking equipment should be properly protected. Garages for storing, fueling, and maintaining vehicles must be separated from office facilities. Township facilities may be a target for political activists or for terrorists.
Adequate security is required. There should be disaster recovery plans in place to continue operations in the event of a large loss.
Crime exposure is from public officials' dishonesty, employee dishonesty and money and securities. Background checks, including criminal history, must be completed on all employees. Receipts must be provided for all payments of taxes, fees, fines, and penalties, with daily reconciliation between receipts and money received.
Deposits should be made promptly with appropriate security provided. Money should not be left on premises overnight. There must be regular audits, preferably by an outside firm. All employees must take at least one complete week of vacation each year.
If the facilities have offices to collect fees, penalties, or obtain permits and licenses, there may be an exposure to holdup.
Inland marine exposures are from accounts receivable for billings, audio/visual equipment, computers, contractors' equipment, fine arts, and valuable papers and records. Contractors' equipment may be used off-premises to build, maintain, or service municipal streets and roads.
Fine arts such as statuary and paintings, artifacts, historical documents, rare or historical books, or manuscripts may be one-of-a-kind and irreplaceable. If insured, valuation should be done by a qualified appraiser.
Valuable papers and records are often delicate and must be protected from fire, water damage, vandalism, theft, or other losses. Duplicates of all files should be stored at an off-site facility for easy retrieval in the event of a loss.
Business auto exposure is limited generally to hired non-owned and some owned service vehicles. All drivers must have appropriate licenses and acceptable MVRs. All vehicles must be maintained on a regular basis with records kept in a central location.
Maryland Township Insurance - The Bottom Line
To learn more about Maryland township insurance programs and what type of coverage it should include to provide comprehensive protection, speak with a reputable insurance broker.
Maryland Economic Data And Business Insurance Regulations
Business owners that have their sights set on Maryland should to take a number of factors into consideration before the set up shop; namely, they need to determine if the state offers favorable for business owners in general, as well as their specific industry. After all, it doesn't matter how top-notch the products and services a business offers may be, if the location isn't favorable for the industry - and businesses, in general - the operation is going to have a hard time thriving.
Below, we examine key factors that indicate whether or not Maryland is favorable for business owners. We also look at some of the must-have types of commercial insurance coverage that are required in the state.
Economic Trends For Maryland Business Owners
A state's unemployment rate is key indicator of whether or not the climate is favorable for business operations. As of May, 2019, the unemployment rate in the Old Line State was 3.8 percent; 0.2 percent higher than the national average. In October of 2020, the rate hit a record low of 3.7 percent, so in less than a year, the unemployment rate has increased by .01 percent; a marginal increase. However, there have been gains in recent years; in 2010, the rate was 7.8 percent; that's a 4.0 percent increase in less than a decade.
The best place to start a business in Maryland is in Baltimore, the state's largest city. Suburbs of the city also offer promising conditions for business owners, such as Ellicott City, Columbia, Fulton, Lutherville, and Elkridge.
The state of Maryland offers a friendly culture for business of all shapes and sizes; but, the industries that are see the most success in the Old Line State include:
- BioHealth and Life Sciences
- Advanced manufacturing
- Information technology
- Aerospace and defense
- Financial services
- Energy (specifically green energy)
- Hospitality and tourism
Commercial Insurance Regulations In MD
The Maryland Insurance Administration regulates insurance in Maryland. Commercial insurance is designed to protect business owners from potential perils; it also protects anyone that interacts with a business, including consumers, vendors, and employees. Having the right type of coverage is not only crucial to avoid serious financial devastation in the even that a catastrophe does occur, but certain types of insurance are mandated, meaning business owners must carry specific forms of coverage.
In the state of Maryland, business owners are required to carry workers' compensation insurance, which offers coverage for on-the-job accidents and illnesses that employees sustain, is also required. Other forms of insurance coverage that business owners may need to invest in depend on the specific industry; for example, companies that distribute or sell alcohol will need liquor liability insurance, and businesses that utilize vehicles for business-related operations should carry commercial auto insurance to protect their drivers and other motorists on the road.
Additional Resources For Miscellaneous Insurance
Find informative articles on miscellaneous businesses including the types of commercial insurance they need, costs and other considerations.
- Adult Daycare Insurance
- Agriculture, Forestry, Fishing & Hunting
- Bail Agent
- Control of Well
- Employment / Staffing Agency
- Engraving Business
- Facility Support Services
- Mail Order
- Oil And Gas Lease
- Personal Concierge
- Photofinishing Lab
- Portable Sanitation
- Printers & Publishers
- Private Water Districts
- Process Server
- RV Parks & Campgrounds
- Security Guard
- Surety Bonds
- Unmanned Aerial Vehicles (UAV) Drone
- Waste Disposal Landfill
- Wedding Planner
An insurance contract is an agreement where one party obligates itself to make good the financial loss or damage sustained by a second party when a designated event occurs. The event must be fortuitous and happen by accident. The named insured must have insurable interest at the time of loss. One final point is that in order for any contract to be considered insurance, there must be a risk of loss.
Fortuitous Event - An occurrence largely beyond the control of any involved party; happening by chance; accidental; for example: fire, lightning, windstorm, explosion or flood.
Insurable Interest - In order to recover from a loss to property, the holder must have an insurable interest in the property at the time of the event or occurrence. An insurable interest is any right, title or interest in property where the holder of that right, title or interest sustains financial loss if the property is damaged or destroyed. Any lawful and substantial economic interest in the safety or preservation of the property from loss, destruction or damage also constitutes an insurable interest.
An entity does not have to be the property owner to have an insurable interest in it. Examples include, but are not limited to, mortgagees, trustees, vendors, lessees and bailees. Insurable interest for any entity must exist at the time the loss occurs.
Risk Of Loss - If property could never be destroyed, there is no risk of loss. If property must necessarily disintegrate or be destroyed, there is no risk of loss. Between these two extremes is the exposure of risk that can be insured.
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Also find Maryland insurance agents & brokers and learn about Maryland small business insurance requirements for general liability, business property, commercial auto & workers compensation including MD business insurance costs. Call us (443) 407-0500.