An excess liability policy covers large, unexpected events that can have a devastating impact on a municipality's reputation and financial stability.
The standard liability coverage limit included in the SC Municipal Insurance and Risk Financing Fund coverage contract is $1,000,000. An excess policy provides increased limits in excess of SCMIRF's standard $1,000,000 limit. These polices provide limits in excess of the underlying general liability, law enforcement liability, auto liability and public officials liability coverage limits.
While the SCMIRF excess liability policy can help protect a municipality from a broad range of situations, there are situations where losses may fall outside of the protection afforded by the SC Tort Claims Act. Even so, cities and towns can use excess liability coverage can for losses that fall outside of the areas governed by the SC Tort Claims Act, such as federal actions and out-of-state lawsuits. For example, excess liability policies include coverage for limited pollution, sexual harassment, inverse condemnation, discrimination, and civil rights violations.
This kind of coverage is available for an additional premium, with the cost determined by the amount of coverage requested. SCMIRF offers optional excess liability limits from $1 million to $4 million.
An excess liability policy can be an efficient way to reduce the risk of the damage that large legal judgments or multiple insurance claims could cause to a municipality.
For more information, contact Robert Collins, underwriting manager at 803.933.1279 or rcollins@masc.sc.