the municipal secretary desktop reference manual - Southwestern ...

E. PUBLIC OFFICIALS BOND
Bonds are guarantees that an official will faithfully or honestly perform duties.
1. Required for tax collectors and treasurers but are good business practice for those
handling money
2. Types of Bonds:
a. Faithful performance of duty -- covers loss from failure of official to perform duties
of office faithfully. Also, cover dishonest acts.
b. Dishonesty bond -- limits coverage to loss caused by dishonest acts of bonded person.
c. Blanket position bond -- one bond written to cover numerous officials/employees
rather than one person individually. Advantage is not having to change names when
individuals are replaced.
F. PUBLIC OFFICIALS LIABILITY (Errors and Omissions)
Covers elected/appointed officials against loss caused by decisions and judgments made in
performance of duties. This insurance is intended to protect taxpayers’ money, individual
officials and employee personal effects.
1. Occurrence form covers a claim whenever incident occurred
2. Claims made covers claim only during policy period. If policy ends, no coverage.
3. Tail coverage -- can be purchased to pick up prior year incidents when changing policies
under claims made form. This is important if you change policies and suspect a claim is
pending.
G. LAW ENFORCEMENT LIABILITY
1. Necessary because other coverage exclude law enforcement.
2. Coverages (should be at least one million dollars)
a. False arrest
b. Bodily injury
c. Wrongful entry
d. Personal injury
e. Civil rights violations (1-4-5-6-8-14 Amendments)
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