LAW ENFORCEMENT LIABILITY OVERVIEW

(July 2019)

INTRODUCTION

Law Enforcement Liability (LEL) coverage was developed to respond to losses that result from “wrongful acts” (acts, errors or omissions) of law enforcement agencies. It is an essential part of any insurance or risk management program for any law enforcement agency as protection is required for acts of political entities and their public officials, law enforcement officers, other employees, auxiliary personnel, reserves, and authorized volunteers. Private companies that offer security services, such as patrol or guard services, have similar exposures. For these agencies, protection for loss resulting from “wrongful acts” is required for acts, errors or omissions of their owners and employees.

There is no standard LEL coverage form. Each carrier develops features according to its appetite for risk and the market segment it targets. As a result, LEL coverage forms may vary significantly in their Insuring Agreements, Exclusions, Conditions, and Defense provisions.

ELIGIBILITY

Law Enforcement Liability Insurance is a specialized coverage that is offered only by a limited number of insurance companies with resources and experience in this field. Further, most carriers prefer to cater to niches within this line of coverage.

Related Article: Law Enforcement Liability Eligibility

COVERAGE

Law Enforcement Liability protects against damages from actual or alleged wrongful acts, by an insured. It can cover a variety of insureds, including political entities and their public officials, law enforcement officers, other employees, auxiliary personnel, reserves, and authorized volunteers, but only when acting within the scope of their duties. However, coverage does not apply to the named insured's general liability exposures that must be insured under commercial general liability coverage forms and policies.

Note: Law Enforcement Liability coverage is available on either an occurrence or a claims-made basis.

ENDORSEMENTS AND OPTIONAL COVERAGES

Some Law Enforcement Liability coverage forms and policies are very broad. Others are much more limited with numerous exclusions. Insurance companies usually offer a number of optional coverages, some of which buy back coverage excluded.

UNDERWRITING

The markets that provide this coverage are very specialized, actually providing niches within this niche. In order to match the right risk to the right underwriter, it is very important to discover the appetite of the particular market. Next it is important to fully evaluate the named insured’s operations and then work with both in developing an effective risk management and loss prevention program.

RATING

Since Law Enforcement Liability is not a standard coverage, each insurance company develops its own classifications, rating format, rates and rate calculations.