Newsletter Issue 2

Public Official Liability on the Rise

Recent studies prove that losses resulting from public official liability (POL) claims continue to rise.

According to Midwest Public Risk, analysis of POL claims from July 2005 through June 2008 reveals that the average Public Official claim is $32,588, while the average for all Liability claims is only $7,379. Another unfavorable reflection is that POL claims account for 3% of all claims filed, but are responsible for 14% of all Liability losses.

Activity in 2009 seems to be following suit, as several major losses have already been created by claims against elected officials. Ironically, all of these losses could have been easily prevented with proper risk management and education. Public (elected) Officials claims most often involve land use, civil rights, and employment practices issues.

The MPR Board of Directors authorized measures to help their membership focus on this concern. In a program that began this past July (2009), all members with Public Official Liability coverage encountered a $50,000 deductible per claim – until their elected officials undertake a formal training program that identifies how to reduce these losses.

According to MPR, this training requirement can be met in one of three ways:

1. Have the elected board undertake the training provided by a designated MPR attorney
2. Attend one of the regional training seminars hosted by MPR
3. Have the in-house attorney deliver the same material with a MPR-approved lesson plan

If you would like more information about mitigating the risks and exposures associated with Public Official Liability, contact your representative at Connell Insurance.

* * * *

Sign up for our Email Newsletter

• Apartments &
  Condos
• Automotive
• Banking
• Cobra
• Contractors
• Entertainment
• Group Benefits
• Hospitality
• Human Resources
• Manufacture/Wholesale
• Marine
• Municipal
• Not-For-Profit
• Restaurant
• Retail & Office Buildings
• Worker's Comp
• Work Comp - High Risk