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Public sector insurance services — Real world claim scenarios

Coverage Type Real-World Claim Scenario Public Sector Coverage Response
Public Entity General Liability Insurance A local municipality is responsible for the design, construction and maintenance of roadways. A single-car accident occurred where the driver overcorrected and flipped after hitting a five-inch drop-off in the road near the shoulder. The driver was rendered a quadriplegic. Suit is filed against the mayor, city council and the public works director for failing to adequately maintain the roadway. The Travelers policy provides coverage for the municipality for both defense and indemnification with consideration of any statutory tort caps and immunity protections that may apply. The city, its elected or appointed officials and employees will receive representation.
Public Entity General Liability Insurance (Sewer Backup) Over a period of time, tree roots had invaded a city-owned sewer line. The sewer line backed up and caused a foot of raw sewage to enter homes through the plumbing. The houses required clean-up, and the residents required evacuation until the homes were once again habitable. The plaintiffs sued the city for damages to their homes and personal property. This optional coverage is available under the Travelers general liability form. If the city is legally responsible for this loss, residents will receive compensation for their property damage and bodily injury. Damages for property damage include costs and expenses the homeowner incurs during the period of evacuation. Even if the city may be immune for sewer backup liability, we will provide coverage for defense costs in the event of a lawsuit, and these costs can be substantial.
Public Entity Management Liability Insurance A fast food restaurant sued a municipality alleging an unnecessary restriction of its hours of operation. The restaurant owner alleged a civil rights violation of due process and sought monetary damages. The Travelers public entity management liability form provides coverage for defending land usage or permit disputes that involve allegations of civil rights violations and money damages. Your defense costs are paid by Travelers in addition to the limit of coverage.
Automobile Liability Insurance A police officer noticed a white vehicle driving erratically and called into dispatch to have the license plate verified. Dispatch advised that the vehicle was stolen. The officer turned on his emergency lights and sirens. Instead of stopping, the vehicle sped off and ran through multiple red traffic signals. The suspect then drove his vehicle into the oncoming lanes of traffic striking and killing an innocent bystander. The bystander's family filed suit against both the police officer and the city for creating a dangerous situation. Our automobile liability protection provides coverage for police departments and individual officers who, using covered vehicles, are involved in police pursuits.
Law Enforcement Liability Insurance Police received a report of an individual discharging a firearm in a trailer park. Two officers responded to the call and, upon arrival, were immediately confronted by the suspect. The officers attempted to coax the suspect into dropping his weapon. He failed to heed orders and instead fired two shots, striking one of the officers. Fearing for their lives, the officers returned fire, striking and killing the suspect. Suit was later filed against the city and the individual police officers involved, alleging excessive force. The Travelers law enforcement liability protection form provides coverage for allegations of civil rights violations such as excessive force protected under any federal, state or local law. The form also considers damages to include the attorney's fees of the person or organization bringing the claim if such fees are awarded, or paid in a settlement, for covered injury or damage. Punitive damages are also covered where insurable by law.
Employment Practices Liability Insurance A municipality had seen all its female firefighters resign. Shortly after the last one left, the municipality received a lawsuit by the women alleging that the male supervisor had sexually harassed and discriminated against them. Travelers employment practices liability protection provides coverage for claims or suits alleging many types of employment discrimination, retaliation and other wrongful employment practices. Back wages, damages for emotional distress and plaintiff attorney fees caused by such practices are covered. Punitive damages are also covered where insurable by law.

For further information or to purchase Public Sector insurance products and services from Travelers, please contact an independent insurance agent or broker.

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