Cities, counties and other public entities encounter a range of risks every day, including worker injuries, infrastructure damage, vehicle accidents and legal liabilities. The impact of these exposures on workers, public safety and budgets can be significant.
Employee Risks
Liability Risks
Professional Liability Risks
Property Risks
Technology Risks
Consider focusing risk mitigation on these five key risk areas to help reduce the financial burden on your community.
The premium you pay for coverage is only one component of your cumulative risk expense. Without proper planning and management of other factors – including ongoing cyber threats, lawsuits and the use of new technologies – the cost of risk for public entities can increase significantly.
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642,800
*bls.gov
job-related injuries and illnesses were reported in state and local governments in 2021.*
642,800 job-related injuries and illnesses were reported in state and local governments in 2021.* *bls.gov
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*All data included is Travelers indemnity claim data, in 2016-2020 accident years. Zero-dollar claims excluded. Valued 12/31/2021. Losses are unlimited and undeveloped.
Training new employees on safety protocols early in their onboarding is essential. According to Travelers data, more than one-third of workplace injuries occur during an employee’s first year on the job.* To minimize injuries throughout your organization, consider taking these steps:
Provide personal protective equipment when necessary.
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Promote an ongoing culture of wellness and safety.
Effectively onboard and train employees.
Attract and hire qualified job candidates.
Explore strategies to build a culture of workplace safety.
Public employees across the organization, particularly those serving in professions like law enforcement, emergency services and social services, can experience increased levels of stress and injuries, leaving them more susceptible to mental health issues and substance abuse. These actions may help minimize the risks:
Collaborate with health providers to offer screenings and education.
Provide employee assistance programs and support work-life balance.
Establish substance use policies and conduct prevention training.
Explore ways to support employee health and well-being.
Mental Health and Substance Abuse
109
Workplace Injuries
• Provide personal protective equipment when necessary.
*2020 bts.gov
of U.S. road conditions are deemed “unacceptable” by the U.S. Department of Transportation.*
19%
19% of US roads conditions are deemed “unacceptable” by the U.S. Department of Transportation..* *bts.gov
When hiring third-party contractors or vendors, public entities can take these risk management actions to safeguard against possible financial losses and legal disputes:
Consult an attorney knowledgeable about third-party contracts.
Retain certificates of insurance and additional insured endorsements.
Ensure contracts specify deliverables and insurance requirements.
Evaluate reputation, stability and track record during due diligence.
Learn more about contractual risk transfer.
Maintaining infrastructure such as bridges, roads, water systems and power grids can be challenging. As infrastructure funding increases and investments in technologies grow, public entities can take steps to help ensure the reliability and safety of critical systems:
Train and equip staff with the skills to manage aging infrastructure.
Prioritize and budget for effective resource allocation.
Develop comprehensive maintenance and upgrade programs.
Conduct regular assessments and inspections.
Discover smart technology options that may improve local infrastructure management.
Public entities should take a proactive approach in identifying and addressing safety hazards like slips, trips and falls and unsafe conditions on roads and in public buildings, as these could lead to serious injuries and liabilities. Incorporate these risk reduction strategies:
Conduct applicable training programs for employees and contractors.
Use signage, barriers and warning systems to alert the public.
Develop a proactive maintenance program for public buildings, roads and facilities.
Explore ways to create a culture of safety.
Prioritizing driver safety and placing a strong emphasis on hiring qualified, responsible and well-trained drivers can help public entities proactively reduce risks and enhance overall safety on the roads. Auto and fleet risks may be reduced through key risk management practices:
Regularly inspect, maintain and service vehicles and fleets.
Establish driver training programs and safety protocols.
Consider installing telematics to collect, evaluate and respond to vehicle, driver and environmental data.
Uncover tips to reduce distracted driving.
Public Safety Hazards
Contractor and Vendor Risks
Consult an attorney knowledgeable in third-party contracts.
Auto/Fleet Risks
Aging Infrastructure
Social inflation and escalating jury verdicts are often driven by factors like shifting jury attitudes, media influence and a general perception that public entities have deep pockets. These preventive steps can help minimize the impacts of social inflation:
Seek legal advice and work with an insurance carrier to identify risks.
Review insurance coverage to ensure adequate protection.
Thoroughly train employees, contractors and vendors.
Identify, monitor and take actions to minimize risks.
Explore the topic of social inflation.
A fair and inclusive work environment includes staying up to date with employment laws and regulations. To help guard against risks such as discrimination, wrongful termination, harassment and wage violations, public entities can also implement employment-related risk management measures:
Create channels for reporting and addressing employee grievances.
Foster a culture of diversity, equity and inclusion.
Provide robust training and development programs.
Create and communicate clear HR policies and procedures.
Explore insurance for employment-related claims.
of all reported employment liability verdicts were faced by government entities over a seven-year period.*
38%
38% of all reported employment liability verdicts were faced by government entities over a seven-year period.* *Insurance Information Institute: Thomson Reuters, Employment Practice Liability: Jury Award Trends and Statistics, 2020 edition.
Management liability risks can include decision-making errors, breaches of fiduciary duty, conflicts of interest and noncompliance with legal and regulatory requirements. To reduce these exposures, organizations can take these risk management actions:
Provide ethics, legal compliance and regulatory training.
Maintain internal controls to detect conflicts of interest.
Establish transparent and well-defined decision-making processes.
Learn more about public entity management liability insurance.
Safeguarding against law enforcement liability can be crucial for public entities to protect the community and mitigate potential legal and financial consequences. In addition to hands-on supervision and proper corrective actions, organizations can:
Perform regular audits and reviews of law enforcement practices.
Deliver comprehensive training programs, including on new laws.
Establish policies and procedures that emphasize accountability.
Learn more about law enforcement liability insurance.
*Insurance Information Institute: Thomson Reuters, Employment Practice Liability: Jury Award Trends and Statistics, 2020 edition.
Social Inflation
Public Officials Exposures
Law Enforcement Risks
Employment-Related Challenges
*NOAA National Centers for Environmental Information (NCEI) U.S. Billion-Dollar Weather and Climate Disasters (2023).
weather/climate disasters, each with losses costing over $1 billion, have occurred in U.S. states in the past five years.
The ongoing threat of weather-related events and natural disasters requires readiness. These steps can help you prepare effectively:
Train staff on emergency procedures, evacuation routes and safety.
Reinforce structures and install early warning systems.
Conduct risk assessments to identify vulnerable areas.
Regularly update emergency response plans.
Find ways to prepare for and manage severe weather situations.
Public buildings are susceptible to fires and other damage that can lead to injuries, property loss and disruption of services. In addition to regular building inspections, organizations should consider these proactive measures:
Maintain electrical, roofing and HVAC systems.
Develop and implement fire safety protocols and evacuation plans.
Install and maintain fire detection and suppression systems.
Learn more about fire detection systems.
Natural Disasters
*ncei.noaa.gov
Fire and Other Property Damage
Data security extends beyond cyber threats. Accidental data leaks can occur when employees mishandle sensitive documents or fail to follow data storage procedures. Third-party vendors with weak security practices can also introduce the risk of a data breach. To help mitigate these risks:
Regularly audit data storage facilities and vendor security measures.
Educate employees on data security and the risks of data loss.
Develop clear data management guidelines.
Uncover 9 essential components of a data security policy.
*csoonline.com
increase in cyberattacks against the government sector in the second half of 2022.*
95%
The risks of using artificial intelligence and smart technology can include potential data breaches, privacy concerns and ethical implications. To better manage these exposures:
Adopt robust data privacy, data security and monitoring measures.
Develop guidelines, policies and training programs for technology use.
Conduct due diligence when selecting AI and smart technology vendors.
Explore 5 ways smart technology enhances public safety.
The extensive information stored in public agencies can be an enticing target for cybercriminals. The use of legacy systems can also increase cyber risks. While organizations may have cyber insurance in place, data loss may also lead to public backlash and harm an organization’s reputation. Implement these measures to help reduce the risks:
Educate employees on how to identify and respond to cyber threats.
Regularly assess systems to identify vulnerabilities.
Establish cyberattack response protocols.
Use multifactor authentication (MFA) and other cybersecurity methods.
Discover ways to reduce the risks of ransomware attacks.
95% increase in cyberattacks against the government sector in the second half of 2022.* *csoonline.com
Data Security
Cyber Threats
Use Multifactor Authentication (MFA) and other cybersecurity methods.
AI and Smart Technology Usage
More Risk Insights
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Travelers’ designated Public Sector Risk Control specialists can offer public entities deep technical knowledge to assess operations and recommend appropriate controls to help improve results. And you can count on us for an efficient response when claims occur.
With risks around every corner, it can be vital for public entities to partner with an insurance carrier that offers the products, services and risk management capabilities that can help manage your cost of risk and reduce claims.
Insurance should be about more than just the premiums you pay.
Travelers designated Public Sector Risk Control specialists can offer public entities deep technical knowledge to assess operations and recommend appropriate controls to help improve results. And you can count on us for an efficient response when claims occur.
