County services such as planning, zoning, permit and license issuance, road maintenance, sanitation, disease control, and public protection of police and firefighters are coordinated within the municipal. For the municipalities to protect themselves from the risks, having municipal insurance is necessary. The insurance will cover the municipal operations and buildings against lawsuits.
Cost of Municipal Insurance
Standard general liability insurance for a municipal will depend on the location, its size, services offered, and history claims.
Why do Municipalities need Insurance?
Municipal officials are responsible for any damage that a decision or judgment may cause to its constituents. For example, a constituent can file a lawsuit against the municipal for misappropriation of funds. It can cause severe financial repercussions. With a municipal insurance policy, the coverage cushion the municipal against a financial crisis. The cover would pay for medical bills, damages, legal fees, etc.
Without a valid insurance policy, the municipal would have to bear all related costs.
Types of Insurance needed for Municipalities
The type of insurance required for municipality operations depends on certain factors. Some of the coverage include
The policy protects the municipality against third party bodily injuries and property damage within areas controlled by the municipality. For example, if a car was involved in an accident caused by a pothole that has been on the road for quite some time. The person may sue the municipal for poor road causing body injuries and property damage. The insurance would cover the legal expenses and court settlements.
Common injuries are caused by poorly maintained roads, sidewalks, ongoing construction activities, etc.
One of the municipal duties is to ensure the safety and security of the residents through crime prevention. If there’s a protest that leads to the looting of businesses, the owners can file a lawsuit against the county or city. The policy would pay for the associated costs.
Employment Practices Liability (EPLI)
This insurance provides the municipal with protection against employees’ claims, which involve discrimination or unfair employment practices that involve race, gender, nationality or age, wrongful termination, or unfair hiring processes.
The above policies offer basic municipal insurance coverage that is essential. To learn how much coverage your municipal requires, get a reliable insurer who understands the risks involved in your business.