Categories: General Interest

Is it Time to Review your District’s Insurance Policies?

Many special districts take a “set it and forget it” approach to their insurance policies. In an environment where the legal landscape, exposure to risk and policies are changing regularly, this approach can create a great deal of exposure for special districts.

 Crime Coverage

If your district relies on consultants such as an accounting firm, your current crime coverage may not protect against embezzlement by these third parties. Your district may need to consider a Designated Agent Endorsement to ensure proper coverage for its outside consultants.

 Cyber Liability

Whether it’s Home Depot or Target, every week seems to bring another headline of a national retailer experiencing a breach of its data storage system resulting in exposure of sensitive customer information. Should your district experience a similar breach, compliance with notification and credit monitoring requirements can cost up to $250 per customer. If your district stores customer or employee data or transfers funds electronically, if may be time to review your cyber liability coverage.

 Outdoor Property

Is your district responsible for the maintenance of outdoor property such as recreation facilities, benches, light posts, back-flow preventers or landscaping features? If so, conducting an accurate inventory of such outdoor property is essential to ensuring that these items are covered by your policy.

 Non-Owned and Hired Auto Coverage

Your district may have adequate coverage for the vehicles it owns but what about when your employees use their own personal vehicles to conduct district business? Quite often districts neglect to obtain such coverage and can unknowingly expose themselves to liability.

 Workers’ Compensation

Are your directors covered as employees under your district’s workers’ compensation policy? This coverage can be obtained for a very small fee and protects against the director losing wages relating to his or her primary job if injured while conducting district business.

Our priority is ensuring that our clients are adequately protected. If you are concerned about your district’s insurance coverage, we can provide impartial guidance and help you navigate the review of your policies. Ultimately, we want make sure your district uses its resources wisely to obtain proper coverage and avoid wasting money on an unnecessary insurance policy.

Lyons Gaddis, P.C.

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