YOU ASK:

What is the definition of Municipal Liability Insurance?

WE ANSWER:

Municipal Liability Insurance covers liabilities that a municipality or city may incur. Up to certain limits, the insurance company will be the one to shoulder the liability payments.

There are times when a citizen brings a lawsuit against a government agency, and when the government agency loses the case, the damages it may have to pay may reach the millions. These lawsuits are mostly for wrongful acts that result to bodily injury or property damage. In a society that has become more litigious, government entities are becoming a target since it is perceived that they have "deep pockets" to pay for large damages.

Municipals and villages should look into their municipal liability insurance coverage to check the liability limits, as well as what activities may result into claims or lawsuits against them.

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