Jail Insurance Policy Information
Jail Insurance. Jails are confinement facilities housing inmates for relatively short periods of time - they may be convicted of minor crimes and serving sentences that are generally less than a year long, or awaiting trial or sentencing.
While some jails host no more than a few hundred inmates, others are bustling facilities capable of accommodating several thousand.
Jails are contained in local law enforcement facilities. They provide temporary detainment for prisoners awaiting sentencing, those facing minor sentences, or until arrangements can be made for transportation to permanent or long-term facilities.
Prisoners generally stay in jails less than one year. After being taken into custody, a prisoner is booked, photographed, and fingerprinted. A physical and mental health evaluation is done to determine whether there are additional needs, and a security assessment is completed.
A body search is conducted to confirm that no weapons or contraband items are being taken into the jail. Depending on the facility, the prisoner may wear his or her own clothing or be issued a uniform. If the facility takes the prisoner's clothing and other personal property into custody, all items must be listed with a receipt signed.
All commercial and public organizations face hazards, but jails, perhaps more than any other organization, are virtually synonymous with "risk" - from fights among inmates that can also pose a threat to correctional officers to clandestine cooking techniques, jails are filled with hazards.
With such a high risk profile, it is especially important for the bodies that manage jails, generally departments of correction or law enforcement authorities, to carefully consider the insurance needs of these facilities. To find out what types of jail insurance a correctional facility might require, keep reading.
Jail insurance protects your correctional institution from lawsuits with rates as low as $157/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked jail insurance questions:
- How Much Does Jail Insurance Cost?
- Why Do Jails Need Insurance?
- What Type Of Insurance Do Jails Need?
How Much Does Jail Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small jails ranges from $157 to $209 per month based on location, size, revenue, claims history and more.
Why Do Jails Need Insurance?
Jails need insurance for the same reasons that lead any other commercial or public organization to invest in top-notch coverage; they can, at any time, be confronted with unforeseen circumstances associated with massive costs. Some of the risks that apply to jails are universal, while other perils are unique to correctional facilities.
Like all other buildings, jails can - for example - be exposed to an act of nature. As varied as earthquakes, hurricanes, wildfires, lightning strikes, and severe floods, these natural disasters can cause damage of such a magnitude that the facility becomes inoperable.
Theft and vandalism are universal risks, but inmate-related theft and vandalism of jail property is almost guaranteed within jails.
The many jail-specific liability risks would include the occupational injury of correctional officers, inmates being injured on the premises in circumstances for which management could ultimately be held responsible, and arson committed by inmates.
It can be challenging for correctional facilities to find an insurer who both deeply understands their needs and is able to meet them, and for this reason, partnering with an insurance company who caters specifically to jail insurance is recommended.
What Type Of Insurance Do Jails Need?
Jails need to carry several different forms of insurance. The precise coverage that will best protect the financial interests of an individual jail depends on factors that include the number of inmates it typically houses, how many correctional officers and other workers it employs, its location, and the materials from which the building was constructed.
An in-depth consultation with a skilled insurance broker who has extensive experience with this field is the most effective path towards obtaining the insurance program that shields a jail from all major perils. Having said that, some types of jail insurance that are indispensable include:
- Commercial Property - This type of insurance covers financial losses resulting from perils that strike the physical building, but also the assets therein. The types of perils that fall under property insurance typically include acts of nature (often with the exception of floods), theft, and vandalism.
- General Liability - This type of jail insurance coverage covers third party bodily injury and property damage claims. In the event that a visiting relative is injured due to poor maintenance, for instance, general liability insurance would cover the resulting legal costs.
- Workers' Compensation - Should a jail employee sustain a work-related injury, of which there is a high risk in this field, workers comp pays for the employee's medical costs, whether the injury was acute or long-term. If the employee is rendered unable to return to work due to occupational injuries, their lost income is also compensated.
- Inmate Medical Coverage - This type of coverage can also be called correctional medical insurance. It offers health and medical insurance to inmates. Correctional medical liability insurance is another related policy that jails will need to carry; in the event that an inmate suffers injuries or health conditions for which the facility could be held liable, it covers legal costs and settlement fees associated with resulting lawsuits.
Bear in mind that the insurance needs an individual jail has are unique. For this reason, a jail's managerial board should find a seasoned insurance broker who can assess their risk profile together with them, and help them source the jail insurance that will optimally protect their financial interests.
Jail's Risks & Exposures
Premises liability exposure is very high due to the number of prisoners living in the jail and any visitors. Public and life safety code compliance is very important. To prevent trips, slips, and falls, stairways, elevators, and floor coverings should be in good condition. Adequate lighting, marked exits and egresses are mandatory.
Parking lots and sidewalks need to be in good repair, with snow and ice removed, and generally level.
There must be procedures to ensure the safety of each incarcerated individual. Any potentially violent or harmful prisoner must be separated from other prisoners. Additional care is required when there is any indication that a prisoner needs either medical attention or may cause harm or injury to himself or herself.
Security concerns regarding the prisoners, employees, guards, visitors, and guests are high and need careful evaluation. Evacuation plans must be in place with regular disaster training conducted.
If the jail furnishes inmates for roadwork, there must be adequate protection for the inmates while in transit and off premises. If inmates are allowed off premises, as in work release programs, there must be adequate supervision to protect public safety.
Professional liability exposure comes from the exercising of police powers, the potential for allegations of personal injury, and from medical care for the prisoners. Allegations regarding discrimination, false arrest, invasion of privacy, negligent hiring and supervision, sexual abuse or harassment, unlawful detention, and use of excessive force are common.
All individuals who work with the prisoners are subject to thorough background checks, including criminal history. Hiring, training, supervision and policy procedures are all important parts of promoting professional attitudes towards inmates.
Workers compensation exposure is very high to employees, guards, drivers, and officers from an injury inflicted by prisoners, who may be violent or mentally ill. Vehicle accidents, assaults, slips, falls, cuts and bruises, back and knee injuries are common.
There may be exposure to caustic chemicals, bloodborne pathogens, or infectious diseases. Activists, victims, family, friends, or relatives of victims and other injured parties may also act out against jail employees.
The training of the jailers, guards, and employees in the handling of emergencies is a critical item to evaluate. Physical exams and psychiatric evaluations should be conducted at least annually.
Property exposure is very high. Ignition sources include electrical wiring, heating and air conditioning systems, and cooking equipment. Any storage of firearms or ammunition on premises increases the potential for damage from fire and can be a target for theft. Electrical circuitry must be up to code and evaluated regularly.
All jails must serve food to inmates. The cooking facilities must be well maintained and cooking done under a hood or in the oven. If grease-laden vapors are produced, a fire protection device should be in place. Filters should be cleaned regularly.
Any laundry facilities, vocational training, or services should be evaluated for any additional fire hazards. Arson is a concern as some inmates may start fires for revenge or to gain attention. Smoke detectors are critical for early detection of a fire. Smoking should be prohibited.
Because some prisoners are violent, the cells and areas where they might be must be resistant to their damage. Wiring and security features must be inaccessible to inmates. Since law enforcement agencies must operate 24 hours a day, seven days a week, there must be advance disaster planning in place.
Crime exposure is due to employee dishonesty and money and securities. All employees must undergo criminal background checks. All ordering, billing, and disbursements must be kept separate. Money collected from such places as the jail store or vending machines must be counted by two individuals and should be deposited on a regular basis.
Inmates' property retained by the facility must be inventoried and a signed receipt maintained on file.
Inland marine exposure is due to bailees customers, computers and valuable papers and records. If the jail is private and bills the state or municipality for services, accounts receivable coverage may be needed. Jails have a bailees exposure as they retain the personal property of prisoners.
Receipts should be provided for any item taken into custody. Computers control many aspects of the jail including clerical functions and security, such as opening and closing doors and other shutdown procedures. There should be adequate backup and duplicates made of all programs.
Valuable papers and records include all information about the prisoners incarcerated in the jail. These should be duplicated with a copy kept at an off-site location.
Commercial auto exposure can be very high as vehicles may be used for the transport of prisoners or inmates, public officials, employees, and guests. Employees can be on the road 24 hours a day, seven days a week, often with traffic congestion, poor road conditions, or inclement weather.
Defensive driving training is necessary. Drivers must be trained to verify that intersections are clear before going through red lights. MVRs must be checked regularly. Vehicles must be maintained on a regular basis with records kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 9223 Correctional Institutions
- NAICS CODE: 922140 Correctional Institutions, 561210 Facilities Support Services, 922150 Parole Officers and Probation Offices
- Suggested ISO General Liability Code(s): 46700
- Suggested Workers Compensation Code(s): 7720
Description for 9223: Correctional Institutions
Division J: Public Administration | Major Group 92: Justice, Public Order, And Safety | Industry Group 922: Public Order And Safety
9223 Correctional Institutions: Government establishments primarily engaged in the confinement and correction of offenders sentenced by a court. Private establishments primarily engaged in the confinement and correction of offenders sentenced by a court are classified in Services, Industry 8744. Half-way houses for ex-convicts and homes for delinquents are classified in Services, Industry 8361.
- Correctional institutions-government
- Detention centers-government
- Honor camps-government
- Houses of correction-government
- Prison farms-government
Jail Insurance - The Bottom Line
To learn more about the specific types of jail insurance policies typically needed, and what limits to consider, speak with a business insurance broker that is experienced in commercial insurance.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Local, State And Federal Government Insurance
Learn about commercial insurance for local, state and federal government agencies, services, operations and buildings.
- County Administration Offices
- Fire Departments
- Government Buildings
- Law Enforcement Entities
- Public Buildings
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.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Employee Dishonesty, Money and Securities, Accounts Receivable, Audio/Visual Equipment, Computers, Contractors' Equipment, Fine Arts, Valuable Papers and Records, General Liability, Cyberliability, Employee Benefits, Public Officials' Liability, Umbrella, Hired and Non-Oowned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Extra Expense, Flood, Computer Fraud, Forgery, Employment-related Practices, Business Auto Liability and Physical Damage and; Stop Gap Liability.