Forget your general fund. Here’s the public officials liability policy that actually protects your town council.
The Vote and the Lawsuit
Our town council voted against a controversial new housing development. We thought we were acting in the town’s best interest. Then, the developer sued the town and each of us council members personally. Our town’s general fund could pay to defend the municipality, but it couldn’t protect our personal assets. Suddenly, my home and savings were at risk because of a vote I cast as a volunteer. That’s when I learned what Public Officials Liability insurance is for. It doesn’t protect the town’s budget; it protects the council members themselves from the consequences of their decisions.
Stop chasing more grants. Chase a better public works fleet insurance policy instead.
The Grant and the Guardrail
As public works director, I was a hero for winning grants. We got a grant to replace a guardrail, saving the town $50,000. I was so focused on bringing money in that I approved the cheapest, most basic insurance policy for our fleet of dump trucks. A month later, one of those trucks was involved in a catastrophic accident. The liability claim against the town was in the millions. The grant money was a drop in the ocean compared to the cost of that one accident. I learned that a solid insurance policy is infinitely more important than the splashiest grant.
The hidden truth about insuring a volunteer fire department that city managers won’t admit.
More Than Hoses and Helmets
As a city manager, I publicly celebrated our volunteer fire department (VFD) for saving taxpayer money. The truth I wouldn’t admit was the scope of their risk terrified me. My biggest fear wasn’t a firefighter getting hurt in a blaze. It was one of their 30-ton engines being involved in a major traffic accident, or the VFD’s board being sued for mismanaging donation funds, or a claim of discrimination from a rejected applicant. A VFD isn’t just a firefighting unit; it’s a complex emergency services corporation with immense liabilities that have nothing to do with fires.
What nobody tells you about the liability of running a small municipal airport.
The Runway and the Ruin
Our town was so proud of our small municipal airport. It was a gateway for local businesses and hobby pilots. What nobody told us council members was that operating an airport, no matter how small, means you are in the aviation business. After a small plane crashed on approach due to what they claimed were poorly marked runway lights, we were hit with a federal lawsuit. Our standard municipal liability policy had a clear aviation exclusion. We learned that an airport isn’t just another park; it’s a specialized, high-risk operation requiring its own expensive aviation liability coverage.
I spent 10 years as a public library director. Here’s what I learned about insuring public spaces and assets.
The Book and the Breach
As a library director, I thought my main insurance risks were a slip-and-fall in the aisles or a fire destroying the books. I was wrong. My biggest risk was invisible. Our public computers were used by a patron to access another person’s private financial information, leading to a lawsuit against the library for enabling a privacy breach. I learned that a modern library isn’t just a building full of books. It’s a public data center, and we needed a specific cyber liability policy to protect us from the digital actions of our patrons.
Unpopular opinion: Your sovereign immunity is not a substitute for liability insurance.
The Immunity That Wasn’t
As a newly elected official in a small town, I heard the term “sovereign immunity” and thought it was a magic shield that protected us from lawsuits. This is a dangerous and unpopular opinion to correct. A plaintiff’s attorney proved me wrong. He found a dozen exceptions to our immunity under state law, allowing a major lawsuit against our town to proceed after an injury on a faulty swing set. I learned that sovereign immunity is not a blanket protection; it’s a legal concept full of holes. It is never a substitute for a real liability insurance policy.
90% of small-town mayors don’t understand this about insuring against wrongful termination claims.
The Firing and the Federal Lawsuit
As the mayor of a small town, I thought firing a non-performing employee was a straightforward management decision. I was wrong. After we terminated a department head, he hired a lawyer and sued the town and me personally for wrongful termination, claiming it was due to his political affiliation. I learned that our general liability policy did not cover this. We needed a specific Employment Practices Liability (EPL) policy. Most small-town mayors don’t realize that every hiring and firing decision carries the risk of a lawsuit that standard insurance doesn’t cover.
This simple change to our sidewalk inspection program transformed our liability exposure.
The Checklist That Became Our Shield
Our town was constantly getting sued for trip-and-fall incidents on our sidewalks. It felt impossible to defend against. Then we made a simple change. We implemented a formal, documented sidewalk inspection program. Our public works crew now walks every sidewalk on a set schedule, with a checklist, documenting any cracks or hazards. This program transformed our defense. In a lawsuit, our attorney can now present a clear, documented history of proactive inspections and repairs. It shows we have a professional system of care, which is our best possible shield.
You’re not struggling to get a bond issue passed because of the project. It’s because your town is perceived as a high insurance risk.
The Bond and the Balance Sheet
Our town council couldn’t understand why our bond issue for a new community center was getting such a poor rating from the bond agencies. The project was popular and well-planned. The reason was buried in our town’s financials. We had a history of large, uninsured liability claims and no formal risk management program. The bond raters saw us not as a bad investment, but as a poorly managed risk. Our high insurance risk profile made us look financially unstable, which was poisoning the well for any new borrowing.
Stop buying a standard business policy. Buy a public entity package with specific coverage for law enforcement liability.
The Arrest and the Aftermath
When our village first established its own small police force, our local agent sold us a standard commercial insurance package. It was a huge mistake. After a controversial arrest led to a lawsuit claiming excessive force and civil rights violations, our insurer informed us the policy had a clear exclusion for any acts of law enforcement. We were completely uninsured. We learned that public entities need a specialized package policy that includes law enforcement liability, a unique and volatile coverage that no standard business policy will ever touch.
The uncomfortable truth about insuring a public cemetery.
The Resting Place and the Risk
Managing our town’s public cemetery seemed like a quiet, low-risk duty. The uncomfortable truth is that it’s a minefield of unique liabilities. We were sued by a family who claimed we had buried their loved one in the wrong plot, requiring a costly and traumatic disinterment. We faced another claim when a heavy, historic headstone fell and injured a visitor. A standard municipal policy often doesn’t contemplate these specific risks. A cemetery requires coverage for errors in burials, as well as the unique property risks of its monuments.
Why everything you know about insuring your town’s Fourth of July fireworks is backwards.
The Sparkler and the Spectator
We always thought that the biggest risk for our town’s fireworks display was one of the big aerial shells malfunctioning. We focused all our safety efforts there. We were wrong. Our biggest claim came from the crowd. A spectator, leaving the event, was injured when they tripped over a discarded piece of equipment in the dark. We learned that the “spectator peril”—managing the movement, safety, and dispersal of a large crowd in a temporary, dark venue—is actually a far greater and more common liability than the fireworks themselves.
I tried to rely on our state’s risk pool for a major claim. It was a disaster.
The Pool That Had No Water
Our small town was part of our state’s municipal risk-sharing pool. We thought it was the same as having insurance. We paid our dues and felt protected. Then we were hit with a “nuclear verdict”—a multi-million dollar lawsuit that was far larger than anyone expected. The pool’s resources were drained by the claim, and to cover the rest, they issued a massive supplemental assessment to every member town. Relying on the pool was a disaster; it didn’t transfer our risk, it just shared the pain. A large loss for one became a huge tax increase for all.
Hot take: Your “historic” town hall is overrated if it’s an uninsurable firetrap.
The Landmark and the Liability
Our town council was so proud of our beautiful, 120-year-old historic town hall. It was the centerpiece of our community. It was also a complete firetrap with ancient wiring, no sprinkler system, and limited accessibility. Our insurance company dropped our property coverage, and we couldn’t find another carrier willing to insure it at any price. My hot take is that your beloved historic building is a massive liability. Unless you are willing to invest in modern safety upgrades, its historic charm is just an uninsurable catastrophe waiting to happen.
Most city clerks waste hours on paperwork. Spend an hour reviewing your public records liability instead.
The Redacted Record and the Repercussions
As a city clerk, my world revolved around paperwork and public records requests. I thought my only job was to provide the documents. Then we were sued. We had responded to a request, but we had improperly redacted the document, releasing private information about a citizen. This led to a lawsuit for breach of privacy. I learned that my job wasn’t just clerical; it was a risk management position. The liability for improperly handling public records—a violation of state and federal law—was a risk far greater than any pile of paperwork.
The 5-minute habit that replaced my fear of a lawsuit over a zoning decision.
The “Why” in the Minutes
As a planning board member, I used to fear being sued over every controversial zoning decision we made. Then I learned a simple 5-minute habit. After a vote, I make sure that the “why” behind our decision is clearly entered into the official minutes. We don’t just state that we denied the variance; we state that we denied it because it failed to meet three specific criteria in our town’s code. This creates a clear, rational, and legally defensible record, showing our decision wasn’t arbitrary but was based on the law.
Your town’s biggest risk isn’t a budget shortfall. It’s an uninsured class-action lawsuit.
The Sewer Line and the Lawsuit
Our town board spent months agonizing over a 2% budget shortfall. We thought that was our biggest financial risk. We were wrong. A few months later, an old sewer main collapsed, backing up sewage into an entire neighborhood of 30 homes. We were hit with a massive class-action lawsuit for property damage and diminished property values. The cost of that one event made our budget shortfall look like a rounding error. I learned that the biggest financial risks aren’t in the budget; they’re in the uninsured, catastrophic events you haven’t planned for.
If you’re a public works director, and you’re not carrying pollution liability insurance for your salt dome and fuel tanks, you’re already losing.
The Slow Leak and the Sudden Cleanup Bill
As a public works director, I thought my biggest risks were snowstorms and water main breaks. I never paid attention to the slow, steady drip of salt runoff from our town’s salt dome, or the aging underground fuel tank for our trucks. Then the state’s environmental protection agency showed up. They handed us a bill for a mandatory cleanup of contaminated soil and groundwater that ran into the hundreds of thousands. Our general liability policy had a clear pollution exclusion. I learned that for a public works department, pollution liability isn’t an option; it’s essential.
Stop glorifying the “small town” government. Start insuring it like a professional public corporation.
The Myth of Mayberry
We loved the “small town” feel of our local government. We were all neighbors, and we ran things informally. We glorified the idea of being a real-life Mayberry. That myth was shattered when we were hit with our first serious lawsuit. We quickly learned that in the eyes of the law, we weren’t a charming TV town. We were a municipal corporation with the same legal duties and liabilities as a major city. We had to stop acting like amateurs and start insuring and managing our town like the professional public entity it was.
The real cost of a “simple” pothole that nobody calculates until the multi-million dollar lawsuit arrives.
The Pothole and the Paralyzed Motorcyclist
We had a line item in our public works budget for pothole repair. We saw it as a routine maintenance cost. We never calculated the true cost of failing to fix one. A motorcyclist hit a deep, known pothole on a main road, lost control, and was left paralyzed. The subsequent lawsuit against the town was for millions of dollars, claiming we were negligent in maintaining our roads. I learned that the cost of a pothole isn’t the price of a bag of asphalt. It’s the potential for a “nuclear verdict” that can financially cripple a town for decades.
What professional city managers do with their insurance that elected officials don’t.
The Risk Manager vs. The Politician
Elected officials often see insurance as just another line item in the budget—a cost to be minimized to keep taxes low. A professional city manager sees things differently. They see insurance as a critical tool for strategic financial planning. They don’t just buy a policy; they work with a specialist broker to build a comprehensive risk management program. They analyze claims data, implement safety programs to reduce risk, and make sure their coverage is tailored to the town’s specific exposures. They manage risk; they don’t just buy a policy.
The myth of “you can’t fight city hall” is destroying your town’s budget when someone does, and wins.
The Citizen Who Fought Back
Our town council operated for years under the arrogant assumption that “you can’t fight city hall.” We thought our decisions were final and that nobody would challenge us. This belief made us careless. We cut corners on legal reviews and documentation. Then we were sued by a determined citizen over a zoning issue. They fought, and because of our sloppy work, they won. The legal fees and the judgment were a devastating blow to our budget. We learned that not only can you fight city hall, but if city hall is unprofessional, you can win.
I quit using a generalist agent and moved our town’s coverage to a public entity specialist. Our coverage improved and costs stabilized.
The Agent Who Didn’t Speak “Government”
For years, our town’s insurance was handled by a local agent who also insured half the cars and homes in town. He was a nice guy, but he didn’t understand municipal risk. He didn’t know about police liability or public officials’ errors. Our coverage was a patchwork of mismatched policies. I made the decision to fire him and hire a broker who specialized only in public entities. The difference was night and day. He understood our world, gave us better coverage, and actually helped us stabilize our costs through real risk management.
Controversial: Your charming town square and its ancient trees are your biggest liability nightmare.
The Oak Tree and the Occupant
Our town’s most beloved feature was the collection of 200-year-old oak trees in the town square. They were beautiful, historic, and the centerpiece of our identity. They were also a complete liability nightmare. During a summer storm, a massive limb broke off one of the trees and crashed onto a car, severely injuring the occupant. The lawsuit that followed claimed the town was negligent in maintaining the “hazardous” ancient trees. That charming, irreplaceable part of our town’s character became the source of our single largest liability claim ever.
95% of advice for new public officials ignores their most critical duty: risk management. Here’s why.
The Unspoken Responsibility
Guides for new public officials are filled with advice on running meetings, engaging with citizens, and understanding the budget. They almost never mention the single most critical duty of a public official: to protect the entity’s assets through risk management. Why is it ignored? Because it’s complex, it’s not glamorous, and it involves talking about negative outcomes like lawsuits and disasters. It’s easier to talk about paving roads than about insuring against a catastrophic liability claim. This omission leaves most new officials completely unprepared for one of their most important jobs.
One small endorsement for “inverse condemnation” on our policy eliminated our biggest land-use worry.
The Zoning Change and the “Taking”
Our town council down-zoned a large parcel of land, preventing a planned development. We thought it was a standard legislative action. Then the property owner sued us, not for damages, but for “inverse condemnation.” They argued that our action had effectively “taken” the economic value of their land without compensation, a violation of their constitutional rights. Our standard liability policy wouldn’t have covered it. Luckily, our broker had included a small endorsement for inverse condemnation claims, a specific and dangerous risk for any town that makes land-use decisions.
The truth about insuring against data breaches of taxpayer information that IT vendors profit from hiding.
The Vendor’s Limited Liability
Our town hired a third-party IT vendor to manage our taxpayer data systems. We assumed they were responsible for security. The truth was buried in their contract. Their liability for any data breach was capped at the total amount we had paid them in the last 12 months—a tiny fraction of the potential cost of a major breach. The vendor profits by offloading the real risk onto the town. We learned we needed our own, robust cyber liability policy, because in the event of a breach, we, the town, would be the one facing the regulatory fines and citizen lawsuits.
Stop making public policy decisions without understanding their insurance implications.
The Ordinance and the Uninsured Aftermath
Our town council, with the best of intentions, passed a new ordinance regulating local businesses. We didn’t consult our town’s insurance advisor. A group of business owners immediately sued us, claiming the ordinance was unconstitutional and caused them financial harm. When we notified our insurer, they informed us that our policy had an exclusion for claims arising from the enforcement of controversial ordinances. We had made a major policy decision without ever considering if it was insurable. The resulting legal battle was paid for directly by the taxpayers.
Replace your hope for a quiet year with a solid crisis management and communication plan. Thank me later.
The Hope That Shattered
Every year, our town leadership would just hope for a quiet year with no major incidents. We had no formal plan for what to do when a crisis hit. Our hope was shattered when a water contamination scare caused public panic. Our response was disorganized, our communication was confusing, and public trust plummeted. We learned that hope is not a plan. A solid, pre-written crisis management and communication plan is. Knowing who is in charge, what to do first, and how to communicate clearly is the only thing that will get you through a real emergency.
The public utility board secret that could save you from a catastrophic water main break claim.
The Break and the Business Interruption
A massive water main, operated by our public utility, broke and flooded the main street of our town. It not only caused huge property damage, but it also shut down a dozen businesses for a week. We were sued not just for the water damage, but for all the income those businesses lost. The secret that saved us was a little-known part of our liability policy that provided coverage for “business interruption” losses of third parties. Without it, our utility would have been on the hook for hundreds of thousands in lost profits for the affected businesses.
Why your traditional property policy fails for unique assets like bridges, dams, and water towers.
The Bridge That Wasn’t a Building
Our town had a standard commercial property insurance policy that covered our buildings. We assumed it covered everything we owned. Then, a barge strike damaged the main support of our town’s only bridge, forcing a closure and a multi-million dollar repair. Our property insurer denied the claim. The policy was designed to cover buildings, not infrastructure like bridges, dams, or water towers. We learned we needed a specialized “inland marine” or “contractor’s equipment” policy that could be tailored to cover these unique, high-value public assets.
I ignored my city attorney’s advice on employment practices liability for years. It cost our town a fortune in a discrimination suit.
The Advice I Should Have Taken
For years, our city attorney told me, the mayor, that we needed to buy a standalone Employment Practices Liability (EPL) insurance policy. I always ignored the advice. I thought it was an unnecessary expense and that we treated our employees fairly. Then, a department head was fired and filed a discrimination lawsuit against the city. The legal defense alone cost us a fortune, and the settlement was even worse. I learned that good intentions are no defense in an employment suit. That EPL policy I ignored for years would have saved our town hundreds of thousands of dollars.
Let’s be honest: Your public entity is one bad decision away from a lawsuit that will raise taxes for a decade.
The Ripple Effect of a Single Vote
Let’s be brutally honest. As a town council member, you sit at meetings and make dozens of decisions. Most are routine. But every so often, you make one that has massive consequences. One bad vote on a zoning issue, one poorly vetted hire, one failed project. That single decision can trigger a multi-million dollar lawsuit. And when that lawsuit is lost or settled, the money has to come from somewhere. It comes from the taxpayers. Your one bad decision can be the direct cause of a tax increase that will burden your neighbors for the next ten years.
87% of local parks departments get their liability for playgrounds and swimming pools wrong.
The Swing Set and the Lawsuit
Our parks department thought that because our playgrounds were compliant with safety standards from ten years ago, we were safe. We were wrong. A child was injured on a swing set, and in the lawsuit, the plaintiff’s expert argued we had failed to keep up with the current evolving standards of playground safety. We learned that compliance is not a one-time event. For high-risk assets like playgrounds and pools, you are held to the most current safety standards, and your insurance carrier will expect you to have a rigorous, documented inspection and upgrade program to match.
This weird habit of documenting every citizen complaint, no matter how small, outperforms everything in a lawsuit.
The “Crazy” Complaint That Became Exhibit A
Our town clerk had a weird habit. She logged and filed every single citizen complaint, no matter how minor or “crazy” it seemed. We used to tease her about it. Then the town was sued over a recurring sewer backup issue. The plaintiff claimed the town had ignored the problem for years. Our lawyer asked for the complaint log. The clerk’s meticulous records showed a clear history of our awareness of the problem and, crucially, our documented attempts to fix it each time. Her “crazy” habit became the single most important piece of evidence in our defense.
The real reason your town’s insurance premium is so high (hint: it’s not the claims, it’s the lack of documented policies).
The Premium for Being Unprofessional
Our town council complained every year about our high insurance premiums. We blamed it on a litigious society. The real reason was simpler: we looked like a bad risk. We had no formal fleet safety program for our trucks, our employee handbook was 20 years old, and we didn’t have a documented process for sidewalk inspections. Insurance underwriters look at this lack of professional policies and see a town that is not actively managing its own risk. Your premium isn’t high because of claims; it’s high because you haven’t given the insurer any documented reason to believe you’re a well-run organization.
Ditch your separate policies. Get a comprehensive public entity package policy instead.
The Gaps Between the Policies
Our town had a dozen different insurance policies from five different agents. We had a property policy, a separate auto policy, a liability policy, and so on. It was a mess. When we had a claim that involved both a vehicle and an action by an employee, the two different insurance companies spent months fighting over which one was responsible, leaving us in the middle. We ditched the chaos and moved to a single, comprehensive public entity package policy from one insurer. It closed the dangerous gaps and gave us one number to call when something went wrong.
Stop pretending your employees’ personal vehicles are covered when they run town errands. Get non-owned auto liability.
The Trip to the Post Office That Cost a Fortune
A town hall clerk used her own personal car to run to the post office for town business. On the way, she caused a serious accident. The injured party’s lawyer sued her and the town. Her personal auto insurance was not enough to cover the massive claim, and the town’s fleet policy didn’t cover employee-owned vehicles. We learned we were completely exposed for this common activity. We immediately purchased “hired and non-owned auto liability,” a simple, inexpensive coverage that protects the town whenever an employee uses their own car for our benefit.
The 9-word phrase that changed how I think about municipal risk.
The government is responsible for everything, until it isn’t.
My town’s attorney once told me, “The government is responsible for everything, until it isn’t.” This phrase completely changed my perspective on municipal risk. It means that citizens expect us, the government, to be responsible for their safety and well-being in all aspects of public life. But, our insurance policies are filled with exclusions and definitions that mean the coverage isn’t there for many of those same risks. Our perceived responsibility is vast, but our actual coverage is narrow. My job is to try and close that dangerous gap.
What the big engineering firms don’t want you to know about their professional liability requirements for public projects.
The Fine Print in the RFP
When our town issues a Request for Proposal (RFP) for a big engineering project, we include a requirement that the winning firm must carry professional liability (E&O) insurance. What the big firms don’t want you to know is that you should also require them to name your town as an “additional insured” on that policy, and to maintain the coverage for years after the project is complete. Without this, if their design fails five years from now, their policy might have already expired, leaving the town with a faulty bridge and no one to hold accountable.
I was today years old when I learned about “failure to supply” insurance for our water utility.
The Dry Taps and the Angry Businesses
Our town’s water utility had a major equipment failure at the treatment plant, and we were unable to provide water to our commercial district for three full days. I thought our liability would be limited to refunding their water bills. I was today years old when I learned that all the restaurants, car washes, and other businesses that had to shut down could sue our utility for their lost income. A standard utility policy doesn’t cover this. You need a specific “failure to supply” liability policy to protect against this catastrophic financial risk.
Normalize making insurance and risk management a standing item on every council meeting agenda.
The Five Minutes That Saves Millions
In our town council meetings, insurance was something we only discussed once a year at budget time. It was an afterthought. We changed one simple thing: we added “Risk Management Update” as a standing, five-minute item to every single meeting’s agenda. It forced us to constantly think about safety and liability. It gave our department heads a regular forum to report on new risks or incidents. Normalizing this conversation transformed our culture from being reactive and complacent to being proactive and professional. Those five minutes are the most important part of our meeting.
Plot twist: Your biggest enemy isn’t a disgruntled taxpayer. It’s a lawsuit from a developer whose project you denied.
The Taxpayer vs. The Deep Pockets
We spent all our time worrying about lawsuits from disgruntled taxpayers over small issues. We were focused on the wrong enemy. Our town’s single biggest lawsuit came after we denied a zoning permit for a massive new commercial development. The developer, who had invested hundreds of thousands in the proposal, hit us with a multi-million dollar lawsuit claiming our process was arbitrary and deprived them of their property rights. We learned that the real financial threat isn’t the angry citizen; it’s the corporation with the deep pockets and the incentive to sue.
The policy endorsement for “sexual misconduct liability” for your public employees everyone ignores.
The Unthinkable, Uninsured Event
No town council wants to even think about the possibility of an employee being accused of sexual misconduct. Because it’s unthinkable, they often ignore the fact that it is a specific exclusion in most liability policies. After a town employee was accused of misconduct, we were horrified to learn that our standard policy would not defend the town or the employee. We needed a specific, and often expensive, “sexual misconduct liability” endorsement. It’s an uncomfortable coverage to discuss, but an absolutely essential one for any public employer.
Stop optimizing for the lowest tax rate. Optimize for a sustainable budget that includes adequate insurance reserves.
The Race to the Bottom
Our town council’s main goal every year was to have the lowest possible tax rate. We were proud of it. To achieve it, we cut what we considered “fluff,” and that always included our insurance reserves and our risk management budget. We were running on fumes. When we were hit with two major, back-to-back liability claims, we had no reserves to pay the deductibles and no funds to fix the underlying problems. We had to issue a massive emergency tax increase. Our obsession with a low tax rate had ironically led to the biggest tax hike in our town’s history.
The brutal truth about why your town’s long history means nothing in a courtroom.
The History That Wasn’t a Defense
Our town was founded in 1789. We were incredibly proud of our long history and our traditions. In a lawsuit over a discriminatory hiring practice, our lawyer tried to argue that our town had “always done it this way” as part of our historic character. The judge was not impressed. He bluntly informed us that our town’s long history of doing something the wrong way was not a valid legal defense. The brutal truth is that your town’s history and traditions are completely irrelevant when measured against modern laws and constitutional rights.
Throw away your outdated employee handbook. A new, legally-vetted one is what you need.
The Handbook That Became a Weapon
Our town’s employee handbook hadn’t been updated since the 1990s. We saw it as a low-priority item. Then an employee sued us for wrongful termination. In court, the plaintiff’s lawyer used our own outdated, non-compliant handbook as a weapon against us. He showed how our own stated policies violated state and federal employment law. Our own document became the best evidence for the other side. A new, annually-reviewed handbook, vetted by a labor attorney, isn’t just a guide for employees; it’s a critical piece of your legal defense.
The 60-second test that reveals if your public officials are protected for their actions on the zoning board.
The Zoning Question
To see if your public officials are truly protected, ask your town’s manager or broker this 60-second test question: “If our zoning board is sued by a developer for denying a permit, which specific policy, and which coverage part within that policy, defends the board members personally for that decision?” If they can’t immediately and confidently answer “Public Officials Errors & Omissions Liability,” your officials are likely not covered. A general liability policy will not protect them for their discretionary, quasi-judicial decisions.
Why everyone is wrong about how “safe” small towns are from major lawsuits.
The Big City Lawsuit in a Small Town
There’s a prevailing myth that small towns are safe, friendly places where major lawsuits don’t happen. This is dangerously wrong. The same catastrophic events that happen in big cities—major police incidents, catastrophic vehicle accidents, civil rights violations—can happen in a town of 500 people. The only difference is that a multi-million dollar verdict that a big city can absorb will bankrupt a small town. The risk of a major lawsuit is actually greater in a small town, because the financial consequences are so much more severe.
Stop asking “how much to insure our town?”. Ask “what is the self-insured retention on our law enforcement liability?” instead.
The Deductible That Can Break the Bank
Our town council used to only ask one question about our insurance: “What’s the total premium?” We were focused on the cost. We should have been asking about our risk. The most important question is one like this: “What is our self-insured retention (SIR) for a law enforcement liability claim?” The SIR is the amount the town must pay out-of-pocket before the insurance kicks in. A low premium might hide a massive, $250,000 SIR that could single-handedly wreck your annual budget. The retention is a far more important number than the premium.
The habit of regular, documented safety inspections of all public property that I wish we’d started decades ago.
The Clipboard and the Courtroom
For decades, our town only fixed things when they broke. We had no formal inspection program. After we lost a major trip-and-fall lawsuit because we couldn’t prove we had ever inspected the sidewalk in question, we started a new habit. Now, every park, building, and sidewalk is inspected on a regular, documented schedule by our staff with a clipboard and a checklist. That simple, boring habit of proactive inspection has become our single most powerful defense in any claim of negligence. I wish we had started it 30 years ago.
Here’s why generic business advice is terrible for a special taxing district.
Not Your Average Business
A special taxing district—like a fire district, a library district, or a sanitation district—is a unique form of government. Generic business advice is terrible for them. Unlike a regular business, their “revenue” is from taxes, their “board” is composed of elected officials, and they are subject to a host of public-sector laws like open meetings and public records. They need the insurance of a public entity (like public officials liability) combined with the insurance for their specific operation (like pollution liability for a sanitation district). Generic advice doesn’t begin to cover their complexity.
I’ll say what everyone’s thinking: Your town is unprepared for a major natural disaster and the claims that follow.
The Flood Before the Flood of Lawsuits
Let’s be honest. Your town has a basic emergency plan for a hurricane or a flood. But are you prepared for what comes next? The flood of lawsuits. Claims that your town’s zoning decisions made the flooding worse. Claims that your storm drains were negligently maintained. Claims that your emergency response was inadequate. A natural disaster is often followed by years of incredibly expensive litigation. Most towns have a plan for the storm, but almost none have a legal and financial plan for the tidal wave of lawsuits that will follow.
The skill of de-escalation for front-line public employees that matters more than any new ordinance.
The Calmer Clerk, The Quieter Courtroom
Our town council used to think that passing new ordinances was the best way to solve problems. We were wrong. We invested in professional de-escalation training for all our front-line employees—the clerks at the counter, the public works crew, the code enforcement officer. We taught them how to calmly handle angry or upset citizens. The result was transformative. Citizen complaints plummeted. Threats of lawsuits disappeared. We learned that the skill of turning a potential confrontation into a calm conversation was more valuable than any new rule we could ever write.
This counterintuitive action of spending more on legal review for ordinances actually fixed our high insurance costs.
The Lawyer Who Lowered Our Premium
Our town council used to try and save money by writing our own ordinances or copying them from other towns, avoiding legal fees. Our insurance premiums were sky-high because the underwriters saw our poorly written laws as a huge liability risk. We took a counterintuitive step: we started paying our town attorney to conduct a thorough legal review of every single new ordinance before we voted on it. Our ordinances became clearer and more legally sound. When our broker showed this new process to the underwriters, our premium dropped by 20%. Spending more on lawyers saved us a fortune.
Why your good intention of “saving taxpayer money” on insurance is actually the most expensive decision you can make.
The Savings That Cost a Million Dollars
As a new council member, my motto was “save the taxpayers’ money.” I voted against renewing our town’s expensive umbrella liability policy, thinking it was a luxury. It “saved” us $20,000. Six months later, a tragic accident involving a town vehicle resulted in a lawsuit that settled for $1.5 million. Our primary auto policy only covered the first $500,000. The remaining $1 million had to be paid directly from the town’s funds, forcing a massive tax increase. That good intention of “saving” $20,000 ended up costing the taxpayers a million dollars.
Quit allowing different departments to buy their own insurance. It’s not worth the gaps in coverage.
The Departmental Divide
In our town, every department—police, library, public works—was responsible for buying its own insurance. They all went to different agents and bought different policies. It seemed to give them autonomy. It was actually creating a disaster. When a police car crashed into a library bookmobile, the two different insurance companies refused to pay and just sued each other, with the town stuck in the middle. We learned that a centralized, single insurance program for the entire entity is the only way to close the dangerous gaps created by departmental silos.
The metric everyone tracks (the budget) that means absolutely nothing if one “nuclear verdict” bankrupts the town.
The Verdict vs. The Budget
Every year, our town council would spend months meticulously debating our annual budget. We would argue over line items of a few thousand dollars. We saw the budget as the ultimate measure of our town’s financial health. Then a lawsuit against our police department resulted in a “nuclear verdict”—a jury award so massive it was more than our entire annual budget combined. In that moment, I realized our carefully crafted budget was a work of fiction. The only number that mattered was the one on that verdict, and it completely broke our town.
Stop calling it “the town.” Call it “a municipal corporation with a fiduciary duty to its citizens.”
The Mindset Shift
As long as we called ourselves “the town,” we acted like a folksy, informal group. We were casual with our procedures and our decisions. Then our attorney advised us to change our language. He said, “You are not ‘the town.’ You are a municipal corporation, and you have a legal fiduciary duty to its citizens.” That change in mindset was profound. It forced us to see our roles not as casual neighbors, but as the directors of a public corporation. It professionalized our thinking and made us take our responsibilities with the seriousness the law requires.
The decision I made to join a state risk-sharing pool that everyone said was bureaucratic (but provided stability and expertise).
Strength in Numbers
As a small town, we were always at the mercy of the commercial insurance market. Our premiums would swing wildly from year to year. My fellow council members thought joining our state’s municipal risk-sharing pool would be a bureaucratic nightmare. I pushed for it, and it was the best decision we ever made. The pool gave us stable, predictable pricing. More importantly, it gave us access to a team of experts in public entity risk management who helped us improve our safety programs and reduce our claims. We traded a volatile market for stability and expertise.
What I learned from our first major data breach that changed our entire IT policy.
The Breach and the Awakening
Our town’s server was hit by ransomware, and sensitive taxpayer and employee data was compromised. We had always seen IT as just a way to make sure our computers worked. The breach was a brutal awakening. We learned that we are not just a town; we are a data company. We hold vast amounts of private, valuable information. The aftermath of the breach—the legal fees, the notification costs, the credit monitoring for citizens—forced us to completely overhaul our IT policy. We now treat cyber security as a core public safety and financial function, right alongside police and fire.
The common mistake of ignoring your mutual aid agreements’ insurance implications.
The Helping Hand and the Hidden Liability
Our fire department had a mutual aid agreement to help the neighboring town in a major fire. We saw it as just being good neighbors. We never considered the insurance implications. During a response in the next town, one of our firefighters was seriously injured. Because the injury occurred outside our jurisdiction while working for another entity, a complex and expensive legal battle erupted between our two towns’ insurance carriers over who was responsible. We learned that every mutual aid agreement must have a clear, pre-negotiated section that spells out exactly whose insurance is primary.
PSA: Most “quick quotes” for public entity insurance are a scam. Here’s proof of what’s missing.
The Instant Quote and the Missing Coverages
I went to a website that promised a “quick quote” for our small village’s insurance. The price seemed great. Then I read the fine print. The quote was for a basic general liability policy that was missing all the critical coverages a public entity needs. It had no public officials liability for the council’s decisions, no police liability, no coverage for our vehicles, and a massive exclusion for any claims related to roads or sidewalks. The “quick quote” was a scam because it wasn’t for the insurance we actually needed; it was for a worthless, stripped-down policy.
The skill of public communication during a crisis that elected officials should learn but don’t.
The Silence That Spoke Volumes
A major water main break in our town led to a boil water advisory. The town council, afraid of saying the wrong thing, said nothing at all for the first 24 hours. That silence was a disaster. It was filled with rumors, panic, and anger from our citizens. We learned that in a crisis, you must communicate early, often, and honestly, even if you don’t have all the answers. The skill of clear, empathetic crisis communication is one of the most important a public official can have, yet it’s one we are rarely taught.
This 5-minute action of checking the town’s website for ADA compliance beats a lawsuit every time.
The Website and the Wheelchair
We thought of the Americans with Disabilities Act (ADA) as something that applied to our building ramps. We never thought about our town’s website. Then we received a demand letter from a disability rights group, informing us that our website was not accessible to visually impaired users with screen readers, a clear violation of the ADA. We were facing a potential federal lawsuit. Now, we do a simple, 5-minute automated ADA compliance scan of our website every month. It’s a simple action that helps us serve all our citizens and avoid an expensive and embarrassing lawsuit.
Why that big national broker is actually doing it wrong for the unique needs of a 500-person village.
The Broker for the Big City
A big, national insurance brokerage firm won our village’s account. They had a fancy office and a slick presentation. But they treated us like a small version of a big city. They gave us a boilerplate program that didn’t fit our unique risks. They didn’t understand the volunteer fire department or our part-time police force. We were just a tiny, unimportant account to them. We switched to a smaller, regional specialist who only worked with small municipalities. They understood our world, and the service and expertise were a hundred times better.
Stop waiting for a citizen to sue. Start with a comprehensive risk management audit of all town operations.
The Audit Before the Accident
For years, our town’s approach to risk was reactive. We’d wait for a lawsuit, then we’d fix the problem that caused it. This is an incredibly expensive way to operate. We finally decided to be proactive. We hired an independent risk management consultant to perform a top-to-bottom audit of every department. They identified dozens of potential risks we had never even thought of. We spent the next year fixing those issues. It was a major investment, but it’s far cheaper to find and fix your own problems than to have a plaintiff’s lawyer find them for you.
The specialist public entity broker I use that most town managers have never heard of.
The Niche and the Knowledgeable
When I became a town manager, I inherited an insurance program from a local agent who was completely out of his depth. I knew I needed a specialist. I didn’t go to a big national firm. Instead, I found a small, highly-specialized brokerage firm that only worked with public entities in my state. They weren’t famous, but they were true experts. They knew the state laws, the specific risks, and the niche insurance carriers that other brokers had never heard of. They are my secret weapon for getting the best possible coverage and advice.
Your claims problem exists because you believe in “the way we’ve always done things.”
The Seven Most Expensive Words
The seven most expensive words in government are “because we’ve always done it that way.” That phrase is the root cause of almost every major liability claim. It’s an excuse for not updating a safety policy, not inspecting a piece of equipment, and not adapting to changing laws and standards. It’s a mindset that invites negligence. Your claims problem exists not because of bad luck, but because your organization is clinging to outdated, risky procedures out of pure inertia. Acknowledging this is the first step to fixing the problem.
Delete that public-facing app with weak security. Your citizens’ data privacy will improve.
The App and the Attack
Our town launched a new mobile app to let citizens pay their water bills. It was convenient and popular. It also had very weak security. A hacker easily breached the app and stole the credit card information of hundreds of our residents. The town was now responsible for a major data breach. We learned that any digital tool that handles citizen data must be held to the highest possible security standard. We deleted the insecure app. Our citizens’ privacy is more important than the convenience of a poorly designed piece of technology.
The advice on liability limits I give that makes small-town councils uncomfortable ($10M is the new minimum).
The Number That Shocks the Council
When I advise a small town council on what their liability limits should be, I tell them that $10 million should be their absolute minimum starting point. They always look at me like I have three heads. They are used to thinking in terms of their small annual budget. But lawsuits are not scaled to the size of your town. A catastrophic police liability or public works accident claim can easily reach eight figures, regardless of your population. The number should feel uncomfortably large. It’s a sign that you are taking your risk seriously in a world of “nuclear verdicts.”
Why the common fear of a high insurance premium is irrational and the real fear of a consent decree from the DOJ is ignored.
The Premium vs. The Takeover
Town councils often live in fear of a rising insurance premium. They see it as a direct threat to their budget. This fear is irrational. The real, rational fear they should have is a lawsuit from the Department of Justice (DOJ) over a pattern of civil rights violations, often in their police department. A high premium is a manageable budget issue. A DOJ consent decree is a multi-year, multi-million dollar federal takeover of your department that will dictate your policies, procedures, and budget. Fearing the premium while ignoring the risk of a federal takeover is a catastrophic failure of priority.
I tried to use a standard commercial package for our public library so you don’t have to. Here’s what happened with the “first amendment” claims.
The Book and the Lawsuit
I ran a public library, and our local agent sold us a standard commercial insurance package. A local group demanded we remove a controversial book from our collection. We refused, citing our commitment to the First Amendment. The group sued the library board. I was stunned when our insurance company denied the claim to defend us. Our standard policy covered things like slips and falls, but it had a clear exclusion for any claims arising from violations of constitutional rights. We needed a specific public entity policy that understood and covered these unique First Amendment risks.
The question about “claims-made vs. occurrence” for public officials liability that instantly reveals if a broker knows their stuff.
The Timing of the Claim
When I interview an insurance broker for our town, I ask them this: “Is your proposed public officials liability policy a ‘claims-made’ or an ‘occurrence’ form?” A true public entity specialist knows the answer instantly and can explain the pros and cons. An amateur will be stumped. An “occurrence” policy covers an act that happens during the policy period, no matter when the claim is filed. A “claims-made” policy only covers claims filed during the policy period. This single technical question instantly reveals whether a broker understands the deep complexities of municipal insurance.
This old-school method of keeping meticulous paper records of every public works job beats every digital system in a lawsuit years later.
The File Folder and the Flood
Our public works department installed a new sewer line. The foreman, an old-school guy, kept a detailed daily log in a physical notebook and a file folder with all the original paperwork. Ten years later, the line failed and flooded a neighborhood. In the lawsuit, the digital records were corrupted and incomplete. But our lawyer was ableto produce the foreman’s meticulous, contemporaneous paper records from a decade earlier. The clarity and authenticity of that old-school file folder became the centerpiece of our legal defense, and it saved us.
Stop romanticizing the “small town charm.” It comes with big-city legal responsibilities.
The Charm That Isn’t a Defense
We loved to market our town based on its “small town charm.” We thought that was our identity. But that charm is not a legal defense. When we were sued for failing to comply with a complex piece of federal environmental law, we couldn’t just tell the judge that “we’re a charming small town, we didn’t know.” The law holds a town of 500 people to the exact same standards as a city of 5 million. Stop romanticizing your charm and start professionalizing your operations to meet the serious, big-city legal responsibilities you actually have.
The principle of “fiduciary duty” that guides every vote I take as a council member.
The Taxpayer’s Trust
When I was elected to the town council, a veteran member told me my only job was to honor my “fiduciary duty.” I learned this means every decision I make must be for the primary benefit of the entity and its owners—the taxpayers. It means I have a duty of care (to be informed), a duty of loyalty (to put the town first), and a duty of obedience (to follow the law). Now, before every single vote, I ask myself if it meets those three duties. It’s the principle that guides me to act as a responsible steward of the public’s trust.
Why your town’s population is vanity and your law enforcement liability limit is sanity.
The Population vs. The Police Lawsuit
As mayor, I used to proudly state our town’s growing population. It was a vanity metric; a sign of our success. The number that truly represents sanity, the one that keeps me up at night, is the liability limit on our law enforcement insurance policy. A town’s population has absolutely no bearing on the potential size of a police liability lawsuit. A catastrophic, multi-million dollar claim can happen in a town of 500 just as easily as in a city of 5 million. The size of your police liability limit is a far more important measure of your town’s health than its population.
Forget being the most charming town. Aim to be the most responsible and best-run town.
Charm vs. Competence
Our town spent a fortune on branding consultants to make us the “most charming” town in the state. We had flower baskets and quaint signs. But our infrastructure was crumbling and our insurance was a mess. A nearby town was less charming, but they were incredibly well-run. They had a fully-funded pension system and a sophisticated risk management program. When a major recession hit, our charming town was on the brink of bankruptcy. The well-run town barely noticed. I learned that competence is far more valuable to citizens than charm.
The realization that made me fire our town’s “brother-in-law” agent and issue a professional RFP for a broker.
The Agent Who Was Out of His League
For 30 years, our town’s insurance was handled by the brother-in-law of a former mayor. He was a nice guy, but he was a small, main street agent who was completely out of his league. He didn’t understand our complex risks. After a series of badly handled claims, I realized this arrangement was a massive liability. I convinced the council to fire him and issue a formal, professional Request for Proposals (RFP) for a qualified public entity broker. The response we got from true specialists was eye-opening and transformed our entire risk management program.
What amateur public officials do with public comments that professional managers never do.
The Comment and the Commitment
During a public meeting, an angry citizen might demand that the town “do something” about a problem. An amateur elected official might respond emotionally, saying “You’re right, we’ll fix that right away!” A professional town manager would never do this. They would listen politely and say, “Thank you for bringing this to our attention. We will take it under advisement and review the matter.” They know that making a promise in a public meeting can create a verbal contract or a legal duty that the town may not be able to fulfill.
The investment in an independent risk management consultant that every town avoids that has the highest ROI.
The Consultant Who Paid for Himself
Our town council was terrified of the cost of hiring an independent risk management consultant. It seemed like a luxury we couldn’t afford. We finally did it, and it was the best investment we ever made. The consultant identified dozens of risks we never knew we had. Based on his recommendations, we implemented new safety programs that led to a dramatic drop in our claims. This, in turn, led to a huge reduction in our insurance premiums. The consultant’s fee was paid for in the first year of insurance savings alone.
Stop saying “our employees.” Say “the public servants for whose actions this town is legally responsible.”
The Language of Liability
As mayor, I used to casually talk about “our employees.” It was a friendly, familial term. Our city attorney suggested I change my language. He said, “Stop saying ‘our employees.’ Start saying ‘the public servants for whose actions this town is legally responsible.'” This small but powerful shift in language was a constant reminder of the legal principle of vicarious liability. It reinforced the fact that the town, and the taxpayers, are ultimately on the hook for every single action, good or bad, taken by an employee in the course of their duties.
The truth about public entity underwriting I couldn’t say as a standard lines underwriter.
Why We Don’t Want to Insure Your Town
I used to be an underwriter for a big commercial insurance company. When we’d get a submission from a small town, we almost always declined it. The truth is, standard insurers are not equipped to handle public entity risk. The potential for civil rights claims, police liability, and political volatility is completely alien to them. Their models are built for businesses, not governments. We didn’t decline you because you were a bad risk; we declined you because you were a risk we didn’t understand. Public entities need specialty insurers who only work with governments.
This tiny detail in the “insured vs. insured” exclusion can prevent the town from covering an official in an internal dispute.
When the Town Sues the Mayor
Our Public Officials Liability policy had a standard “insured vs. insured” exclusion. We didn’t think much of it. Then our town council had a bitter internal dispute and voted to sue the mayor for an action he took without their consent. Because the Town Council (an “insured”) was suing the Mayor (another “insured”), the insurance company invoked the exclusion and refused to pay for either side’s legal defense. This tiny detail can be catastrophic in an internal political battle, leaving everyone to pay for their own lawyers.
Why a low premium is a trap for any public entity, period.
The Cheapest Policy, The Costliest Mistake
Our town was thrilled when we found an insurance policy with a premium that was 30% lower than any other quote. We thought we were fiscal geniuses. We were fools. The low premium was a trap. The policy was from a low-rated insurer and was filled with massive deductibles and dangerous exclusions. When we had our first major claim, the insurer fought us every step of the way. We learned that for a public entity, a quality, stable insurance partner is far more important than a cheap price. A low premium is often a sign of a weak policy.
Replace your complicated ordinances with simple, clear, and legally-enforceable ones. You’re welcome.
The Ordinance Nobody Understood
Our town’s zoning code was a hundred pages of dense, contradictory, and confusing language written over 50 years. Nobody, not even our attorney, fully understood it. This made it nearly impossible to enforce consistently and opened us up to lawsuits claiming our decisions were arbitrary. We spent a year and a significant amount of money to completely rewrite and simplify our code. It was a painful process, but it resulted in a set of clear, simple, and legally-enforceable ordinances that reduced lawsuits and made life easier for everyone.
The skill of running a transparent, open meeting that’s 10x more valuable than a new downtown revitalization project.
The Trust That Transparency Builds
Our town council was always chasing a big, splashy downtown revitalization project. We thought it was the key to our success. But our meetings were chaotic and our decisions seemed to be made in secret. Citizens didn’t trust us. A neighboring town had a less exciting downtown, but their council meetings were models of transparency and open communication. Their citizens trusted them implicitly. I learned that a multi-million dollar project is worthless if nobody trusts the government behind it. The skill of building public trust is far more valuable than any brick-and-mortar project.
Stop treating your town’s insurance like a necessary evil. Treat it as a core function of responsible governance.
The Budget Item That Protects the Budget
Many of my fellow council members saw our insurance premium as a “necessary evil”—a painful expense that took money away from services. This is backwards. Insurance is not an evil; it is a core function of responsible governance. It is the tool that protects the entire budget from being wiped out by a single catastrophic event. It ensures that we will be able to provide services next year. It’s not an expense to be minimized; it’s an asset to be managed, the same way we manage our roads and our water system.
The experiment I ran of creating a citizen safety committee that proved community involvement could lower risks.
The Eyes and Ears of the Community
I was looking for a way to reduce our town’s liability claims. I decided to run an experiment. I created a volunteer “Citizen Safety Committee.” We empowered a small group of dedicated residents to be our eyes and ears, proactively identifying potential hazards in our parks and on our sidewalks. The results were incredible. They reported issues faster than our own staff could find them. Our slip-and-fall claims dropped by half. The experiment proved that engaging the community in risk management is a powerful and effective way to create a safer town.
Why your old insurance program worked before but doesn’t cover modern risks like cyber liability and drones.
The Policy from a Different Era
For 20 years, our town had the same basic insurance program. It covered us for car crashes and slips and falls. It worked fine for the risks of the 1990s. It is dangerously inadequate for the risks of today. Our old policy has no coverage for our biggest modern exposures: a massive data breach of citizen information, a liability lawsuit from our police department’s use of drones, or a claim of online harassment on the town’s Facebook page. Your risks have evolved, and your insurance program must evolve with them.
The choice to fully fund your insurance reserve that everyone judges that actually makes financial sense and lowers long-term costs.
The Fund That Fights for You
My town council was criticized by some taxpayers for our choice to maintain a fully-funded insurance reserve fund. They saw it as money that was “just sitting there.” They were wrong. Having that healthy reserve fund allowed us to confidently take on a higher self-insured retention (deductible) on our insurance policies. This dramatically lowered our annual premium. The reserve fund also gives us the ability to quickly settle small, nuisance claims without even involving our insurer. It’s a choice that saves the taxpayers money in the long run.
I stopped allowing verbal approvals for anything and our documentation and defensibility soared.
The “OK” That Wasn’t
As a department head, I used to get quick verbal approvals from the mayor for small purchases or decisions. It was fast and easy. It was also a liability nightmare. When a decision was questioned later, it was my word against his, with no paper trail. I made a new rule for myself: I will not proceed on anything without a written approval, even if it’s just a simple “OK” in an email. This habit created a clear, documented record of every decision. It slowed things down slightly, but it made my department’s actions completely defensible.
The concept of “inverse condemnation” that nobody on a planning board understands but changes everything.
The Taking Without Touching
Our planning board denied a permit for a new business, and we thought that was the end of it. Then the property owner sued us for “inverse condemnation.” We had never heard of it. Their lawyer argued that even though we hadn’t physically taken their land, our regulatory action—denying the permit—had destroyed all of its economic value, which was a form of “taking” that required compensation. I learned that a planning board’s decision can have consequences far beyond a simple yes or no vote. It can trigger complex constitutional claims that every member needs to understand.
This unpopular opinion on holiday decorations will trigger town councils but it’s true from a liability perspective.
The Lights and the Lawsuit
Every year, our town council loves approving elaborate holiday decoration displays on public property. It’s popular with citizens. Here’s the unpopular opinion: from a liability perspective, it’s a nightmare. The lights and wires create trip hazards. The displays can obstruct views at intersections. If the decorations include a nativity scene, it can trigger a lawsuit over separation of church and state. And if a volunteer is injured while putting up the display, the town can be held responsible. That charming holiday display is one of the riskiest things a town does all year.
Stop copying the ordinances from the next town over. Your town’s risks are unique.
The Borrowed Law and the Bad Fit
Whenever our town needed a new ordinance, our first step was to call the next town over and ask for a copy of theirs. It seemed like an easy shortcut. It was a terrible practice. Their town had different zoning, different demographics, and different legal precedents. Their “borrowed” ordinance was often a poor fit for our unique community and our specific risks. We learned that every ordinance needs to be drafted or reviewed by your own attorney to ensure it is tailored to your town’s specific needs and can withstand a legal challenge.
The mistake of ignoring your fleet safety program I see everywhere in public works departments.
The Truck and the Training Gap
Our public works department had a fleet of heavy trucks, but we had no formal fleet safety program. We just assumed our drivers, who all had the right licenses, knew what they were doing. That assumption was shattered after a preventable accident was caused by one of our drivers texting. The subsequent lawsuit focused on our lack of training and policies. We learned that just hiring licensed drivers is not enough. A documented program of regular safety training, vehicle inspections, and clear rules is essential for protecting the public and the town’s budget.
Why this new “gov-tech” isn’t innovative. It’s just a new way to create uninsured cyber risks.
The App and the Unseen Liability
A slick “gov-tech” startup sold our town a new app for citizen engagement. It was innovative and user-friendly. It was also an uninsured cyber liability nightmare. The app collected citizen data and stored it on the startup’s own cloud servers, with a terms of service that put all the liability for a data breach on the town. The “innovation” was just a new and efficient way for a private company to offload its risk onto the taxpayers. We realized we needed our own cyber policy to cover the risks created by the technology we were buying.
The rule I break consistently (I ask our attorney to review everything before we vote) and why you should too.
The Legal Check Before the Vote
My fellow council members sometimes get annoyed with me. I have one rule that I consistently break from the “go-along-to-get-along” norm: I insist that our town attorney conduct a brief legal review of almost every significant resolution or ordinance before we vote on it. They see it as slowing things down. I see it as preventing lawsuits. That five minutes of a lawyer’s time, confirming that what we are about to do is legally sound, is the single most effective risk management tool we have at our disposal.
Stop believing your town’s good reputation will protect it. Believe in a comprehensive public entity insurance program instead.
The Reputation and the Reality
Our town had a wonderful reputation. We were known as a well-run, friendly, and safe community. We thought this reputation was our shield. Then we were hit with a major lawsuit. In the courtroom, our good reputation was irrelevant. The only things that mattered were the facts of the case and the law. Our reputation couldn’t pay the legal bills or the settlement. We learned that a good reputation is something to be proud of, but a comprehensive insurance program is what you must believe in to protect it.