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Risk Management




Bryan K. Heckle

Richard Bolyard
Loss Control and Claims Specialist

Services For Local Governments

Risk Management Services For Local Governments

The Department of Insurance, Risk Management Division, upon request, assists local governments with insurance programs and risk management. The Division assists local government officials with requests or questions on property and casualty insurance and property and liability exposures to loss or damage. Assistance may take the form of answering a question on a specific topic, assisting with bid specifications for marketing of an insurance program, analysis of property and casualty loss exposures, performing risk management assessments to optimize the entity’s insurance coverage, and responding to inquiries on special projects.

Guide To Insurance Coverage

This guide outlines the major insurance coverages that are desirable for treatment of property and liability loss exposures in government and institutional entities. All of these coverages may or may not be needed to treat exposures in your particular municipality but nevertheless should be addressed by your insurance agent or company. It is recognized that your insurance coverage may not be purchased in the manner suggested for one reason or another; however, this guide provides a desirable goal.

PACKAGE POLICY - This type of policy may offer the advantages of cost, broader coverage and convenience over separate monoline policies. Two or more of the following types of insurance may be included: Property, Boiler and Machinery, Inland Marine, General Liability, Crime, Automobile.

PROPERTY - "All Risk", Replacement Cost coverage written on a blanket basis on buildings and contents or personal property.

BOILER AND MACHINERY - Comprehensive coverage on such items as steam and hot water boilers and piping, air conditioning and refrigeration systems, pumps, compressors, deep well pumps, turbines, engines, wheels, gears, shaft drives, electrical distribution equipment, transformers, etc.

EQUIPMENT FLOATER"All Risk" coverage on property of a mobile or floating nature such as graders, tractors, mowers, backhoes, saws, air compressors, mobile radios, guns, firefighting clothes, breathing apparatus, ladders, etc.

ACCOUNTS RECEIVABLE AND VALUABLE PAPERS & RECORDS - "All Risk" coverage on accounts receivable and valuable papers, records and documents, unless loss control measures (e.g., duplicate records) are effective.

FINE ARTS FLOATER - "All Risk" protection for objects of art such as pictures, statuary, bronzes, antiques, rare manuscripts and books, articles of virtu, etc.

TIME ELEMENT INSURANCE - Includes policies for Business Interruption, Extra Expense, Rent or Rental Value. Business Interruption losses are not thought to be a major consideration for many governmental units, although Extra Expense and Rent and Rental Value may apply in some cases.

GENERAL LIABILITY - Comprehensive General Liability or Commercial General Liability providing coverage for premises and operations, products and completed operations and independent contractors. Add Broad Form Comprehensive General Liability endorsement if Comprehensive General Liability is used.

CRIME - Comprehensive Dishonesty, Disappearance and Destruction Policy or Blanket Crime coverage to handle exposure to loss of money and securities by employees and outsiders (burglars and robbers), loss resulting from acceptance in good faith of money orders and counterfeit paper currency and loss as a result of depositors forgery. If faithful performance coverage is required, Public Employees Blanket coverage can be used instead of a Comprehensive Crime policy. Fidelity Bonds as required by law to guarantee honesty of the principal.

AUTOMOBILE LIABILITY & PHYSICAL DAMAGE - Business Auto Policy, including Employers' Non-Ownership Liability and Hired Car coverage. Comprehensive and Collision coverage for damage to automobiles where it is not practical or desirable to retain this exposure. Medical Payments coverage for private passenger type vehicles.

Other Policies

SURETY BONDS - as required to guarantee performance of public officials or others.

WORKERS' COMPENSATION & EMPLOYERS' LIABILITY - Workers' Compensation provides benefits to employees for occupational injury, disease or death. The benefits and rules regarding payment of benefits are regulated by State law. Employers' Liability provides common law defense of the employer for employee injuries not covered by the Workers' Compensation Act.

PROFESSIONAL LIABILITY OR ERRORS AND OMISSIONS - Protection against liability for injury arising out of malpractice, error, or mistake of the insured, or a person for whose acts or omissions the insured is legally responsible. Coverage should apply to all public employees and officials, including law enforcement employees.

DATA PROCESSING EQUIPMENT POLICY - "All Risk" coverage on electronic data processing equipment and records.

UMBRELLA LIABILITY - Provides excess liability limits over any underlying liability coverage that may apply and may cover some liability exposures excluded by the underlying liability policies, subject to a deductible.

For assistance, contact:

Bryan Heckle, Risk Manager
N.C. Department of Insurance
Risk Management Division
1202 Mail Service Center
Raleigh, NC 27699-1202