Travelers Adds Special Expense Coverage to Public Entity Policies

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Travelers has enhanced its public entity management liability (PEML) policy that provides limited special expenses coverage reimbursement related to the replacement of key employees in the event of a death or medically confirmed situation that results in their resignation or retirement.

When a key public employee is unexpectedly injured or otherwise medically incapacitated, several essential steps must occur in order to maintain an organization’s normal business operations. Frequently, it is necessary to hire a search firm to find a permanent replacement or hold a special election to replace a public official, all of which can result in financial stress for the organization.

“The cost of finding a replacement for a key public sector employee in the event of death or disability is estimated to range from $5,000 to $15,000, while holding a mid-term election can easily cost as much as $15,000 alone,” said Chuck Wright, President, Travelers Public Sector Services.

Travelers has developed limited special expenses coverage for key employees to meet the unexpected needs that would arise in such a situation.

The limited special expenses coverage for key employees is available to cover lawfully elected officials, employees at the head of police, fire and other public safety organizations, and employees at the head of legal, finance or risk management departments within a public entity. The enhancement is designed to reimburse costs (up to sublimit options of either $25,000 or $50,000) associated with the following situations:

Hiring a permanent replacement of a key employee, including hiring a search firm or outside advertisement agency;
Advertising, travel, temporary lodging, meals and car rental;
Holding a special election, including polling premises, ballot machines, temporary workers, printing of ballots, ballot counting and public communications.

Travelers has provided coverage solutions to public entities for more than 22 years and continues to refine their offerings to help public entities address new challenges. The limited special expenses coverage for key employees policy enhancement complements Travelers existing portfolio of products and services that are specialized for the public sector industry, including: