New to PGIT’s coverage agreement for the 2004-2005 period is an enhancement to help you prevent a claim from happening.   PGIT 500, Public Officials Liability ad Employment Practices Liability, contains the following new clause:

Supplementary Payments

If during the Agreement Period you report a potential termination of any employee to us prior to the time the termination is made we will pay for consultation with legal counsel of our choice to provide:

A. Legal analysis concerning the appropriateness of the termination; and

B. If applicable legal assistance in handling the termination.

The most we will pay is $2,500 for each potential employee termination subject to an Agreement Period aggregate of $5,000.

Wrongful termination claims can be very costly to defend for more reasons than the need for expensive counsel.   Due to their nature, they usually involve staff as well as elected officials.   Even if untrue, the allegations can have a ripple effect both internally and externally.   PGIT advocates handling sensitive terminations carefully, and the advice of legal counsel.

PGIT has identified several attorneys with expertise in employment related matters.   To utilize this coverage, simply report as you would a normal claim.

Another new coverage this year is located in PGIT 200, General Liability, under Supplementary Payments:

(1)Up to $100,000 in aggregate for “personal injury” and related expense for any duty elected or appointed official of any board or commission or agency of yours while acting outside the course and scope of their duties as authorized by you, but only with respect to “personal injury” resulting from his/her affiliation with you.   The coverage provided to such individual is excess over any other insurance or coverage specifically insuring against “personal injury” for such individual.

The uniqueness of this coverage is that it applies outside the course and scope of duties for elected or appointed officials.   Personal injury is defined to mean:

…. Injury, other than “bodily injury,” arising out of one or more of the following offenses:

1. Malicious prosecution;
2. The wrongful termination from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies by or on behalf of its owner, landlord, or lessor;
3. Oral or written publication of material that slanders or libels a person’s or organization’s goods, products or services; or
4. Oral or written publication of material that violates a person’s right of privacy

These broadened coverages will protect you, and your elected and appointed officials.   If you have any questions, please don’t hesitate to contact your agent, or e-mail me at mscholl@publicrisk.com.
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