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MUNICIPAL INSURANCE - Pennsylvania Municipalities
Although not required to be bid, it is a good idea to periodically request proposals for municipal
insurances. What follows is a brief review of the most typical of municipal insurance policies:
A. AUTOMOBILE POLICY
1. Individual or schedule policy -- insured must notify insurers if addition or deletion
occurs.
2. Fleet or comprehensive policy -- usually five or more vehicles as a minimum; this type of
policy can qualify for a discount, insurers usually audit at year end to pick up changes.
3. Usual limit -- $500,000 liability (due to tort claim law).
4. Usual deduction -- $1,000.
5. Uninsured/underinsured -- $35,000 (minimum allowable in PA).
6. Comprehensive -- pays if car is stolen or damaged by fire, flood, vandalism, etc.
7. Collision -- pays for damage to your car by collision with another vehicle.
8. Underinsured/uninsured -- coverage for injury caused by an uninsured/underinsured
motorist or a hit/run or from a person you sue but he can't pay. In PA this automatically
equals the liability limit, but it is optional to lower the amount; minimum is $35,000.
9. Optional coverage:
a. Emergency equipment endorsement (important for fire apparatus)
b. Radio, light, siren bar, CB for police cars
c. Hired, non-owned coverage. Important if officials/employees use their own vehicles
for official business. Personal auto policy pays first; this endorsement allows the
municipality policy to pay secondary. Otherwise, total liability rests with the vehicle
owner alone.
B. GENERAL LIABILITY
1. Liability from any source except law enforcement
2. Minimum limit is $500,000 but $1 million is not unusual
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