C O V E R A G E
We tailor our policies to meet the unique insurance needs of Utah’s public agencies. From Public Officials Errors and Omissions, to General Liability, Auto Liability, Property, and Workers’ Compensation, every effort is made to partner with and give members exceptional coverage, limits, terms, and conditions. All at the most competitive and sustainable rates.
Customized Insurance for Your Unique Needs
Comprehensive Liability Coverage
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Comprehensive general liability insurance protects organizations and individuals against various liabilities arising from third-party claims of bodily injury, property damage, and personal injury. It covers legal costs, settlements, and judgments that might arise from these claims. This type of insurance is broad in scope and protects against a range of incidents that occur in the course of operations. It typically includes coverage for:
• Bodily Injury: If someone is physically injured on your premises or as a result of your activities, this coverage can help with medical expenses, legal fees, and potential settlements.
• Property Damage: If your agency or employees causes damage to someone’s property, this coverage assists in covering the costs to repair or replace the damaged property.
• Personal Injury: This covers non-physical injuries or financial injuries to a third-party due to your negligence.
Your comprehensive liability insurance through the Trust includes coverage for general liability, auto liability, law enforcement liability, public officials’ errors & omissions, employee benefits liability and more. This provides financial protection and helps mitigate the risks associated with potential lawsuits, offering peace of mind by addressing various liabilities that might arise due to your operations. -
General liability insurance plays a vital role in protecting local governments by:
• Coverage for Bodily Injury and Property Damage: Local governments interact with the public through various services and facilities. If someone sustains an injury or their property is damaged due to the government's operations or premises, general liability insurance covers the resulting costs, including medical expenses, repairs, or legal fees.
• Protection Against Lawsuits: If a third-party files a lawsuit alleging negligence, personal injury, or property damage caused by the government's actions, the insurance covers legal defense costs, settlements, or judgments. This helps safeguard the government's financial resources and ensures the ability to handle legal challenges effectively.
• Coverage for Losses due to Services Provided: Services provided by the government, such as water, sewer, public utilities, parks & recreation programs, snow removal, street and road maintenance construction, policing, fire suppression and other services may result in damages or injuries to the public. Liability coverage serves to indemnify injured parties after a covered loss.
• Risk Management Assistance: The Trust provides a wide array of risk management services, assisting local governments in identifying potential risks, implementing safety measures, and reducing the likelihood of accidents or incidents that could lead to liability claims.
• Maintaining Public Trust: General liability insurance demonstrates the government's responsibility and preparedness to handle unforeseen incidents. It helps maintain public trust by ensuring that financial resources are available to address liabilities arising from government operations. -
The cost of comprehensive general liability coverage for a municipal organization varies based on numerous factors:
• Size of the Entity: The population served, and scale of operations, play a role in determining the insurance cost. Larger organizations with extensive operations can expect higher premiums.
• Services Offered: Local governments that provide a wide range of services, such as public safety, utilities, transportation, and recreational facilities have varying levels of risk, which impacts insurance costs.
• Claims History: Your past claims history is a significant factor. A history of frequent or severe claims may lead to higher premiums due to higher risk.
• Infrastructure and Assets: The value and condition of municipal-owned properties, including buildings, roads, parks, and equipment, impact insurance costs. Higher-valued assets might require more coverage, affecting premiums.
• Employee Count and Activities: The number of employees and their activities within the organization can influence costs. Certain roles or operations might pose higher risks, affecting insurance pricing.
• Deductibles and Coverage Limits: The coverage limits and deductibles chosen by your agency will impact the premiums. Higher coverage limits and lower deductibles generally result in higher premiums.
The Trust partners with hundreds of public agencies all across Utah, protecting the many thousands of dedicated public employees and the agencies they serve from the liability of accidents and negligence.
When unforeseen challenges arise, we stand ready to step in and protect your organization when it’s needed most.
Commercial Property Coverage
Members of the Trust participate in one of the largest property insurance placements in the world. This ensures unmatched coverage and price stability through large group purchasing power.
Our specialized approach to property insurance keeps premiums low, while providing broad coverage, replacement cost valuation, complimentary property appraisals, and coverage that is free of coinsurance clauses.
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Commercial property insurance is designed to protect organizations and their physical assets. It covers physical structures, contents, equipment, inventory, computers, furniture and more. Coverage typically insures against perils such as fire, theft, vandalism, natural disasters, and other events that could damage or destroy property. It helps organizations to recover financially by providing funds to repair or replace damaged property, facilitating the continuity of operations.
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Local governments maintain property insurance for several critical reasons:
• Protection of Public Assets: Governments own numerous properties and assets critical for public services, such as administrative buildings, courts, libraries, public parks, community spaces, and emergency facilities. Property insurance helps safeguard these assets against damage from natural disasters, accidents, vandalism, or other unforeseen events.
• Risk Management: It's essential for governments to manage risk effectively. Property insurance mitigates the financial impact of potential losses, allowing governments to recover quickly and continue providing essential services to their communities.
• Legal and Financial Obligations: Many municipalities have legal and financial responsibilities to protect public property. Insurance helps fulfill these obligations by ensuring that resources are available to repair or replace damaged or destroyed assets.
• Continuity of Services: Maintaining functional properties is crucial for the continuity of government services. Property insurance assists in restoring operations swiftly after property damage, ensuring minimal disruption to public services.
• Liability Coverage: Property insurance is often coupled with liability coverage, which provides protection to cities, counties, and districts from legal claims related to property damage or injuries that occur on government-owned premises. -
The cost of property insurance is calculated using several key factors, including:
• Property Value: The value of the property being insured directly impacts the insurance cost. Higher property values generally lead to higher insurance premiums.
• Location: The geographical location plays a significant role due to varying risks associated with different areas. For instance, properties in areas prone to natural disasters, such as flooding, might have higher premiums.
• Property Characteristics: The type of building, its age, construction materials, safety features, and any additional factors like the presence of fire suppression systems can influence the cost.
• Coverage and Deductibles: The extent of coverage and the deductibles chosen by the insured affect the premium. Comprehensive coverage with lower deductibles typically results in higher premiums.
• Risk Factors: Buildings with higher risks (e.g., hazardous materials, tenants, or fire hazards) might face increased premiums.
• Claims History: Past claims history can impact the cost of future coverage. More claims or higher-value claims can lead to increased premiums.
The best way to determine the specific cost for property insurance is to provide the key features of your properties as outlined above. We can then assess the specific risk factors and characteristics of your property to provide an accurate premium estimate. -
To ensure your assets are properly protected, the Trust has contracted with a third-party appraisal firm to provide a valuation of your buildings on a regular basis. Appraisal reports include detailed images, GPS coordinates, valuation, and other COPE (Construction, Occupancy, Protection, Exposure) data. Annual adjustments to appraised values are made to align with current market trends, accounting for fluctuations in material costs and labor expenses.
Commercial Auto Coverage
Thousands of public entity vehicles throughout Utah are protected, offering adaptable coverage options to ensure the comprehensive protection of your assets and organization.
Our unique strategy to auto physical damage coverage not only sustains affordable premiums but also extends broad coverage that is tailored for vehicles of all sizes.
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Auto physical damage insurance, often referred to as comprehensive and collision coverage, is a type of insurance that helps cover the cost of repairing or replacing your vehicle if it's damaged in an accident or due to other incidents such as theft, vandalism, fire, or natural disasters.
Collision coverage specifically pays for damages resulting from collisions with other vehicles or objects, while comprehensive coverage pays for damages from non-collision incidents. Combined, they offer protection for a wide range of scenarios, thus providing financial support to repair or replace your vehicle, up to the policy's limits, minus any deductibles. -
Auto insurance plays a crucial role in protecting local governments, such as:
• Continuity of Services: Local governments often operate fleets of vehicles for various purposes such as law enforcement, public transportation, maintenance, and more. Auto insurance covers these vehicles against accidents, theft, vandalism, or other damages, ensuring they remain operational and minimizing the chance for an interruption in public services or a financial loss to the government entity.
• Liability Protection: In case of at-fault accidents involving government vehicles, auto insurance provides liability coverage. This protects the government entity from legal and financial liabilities arising from bodily injury or property damage caused to others.
• Risk Management: Insurance for local governments often includes risk management services. This involves assessing potential risks, implementing safety measures, and providing guidance to reduce the likelihood of accidents. This proactive approach helps mitigate risks and helps to lower insurance costs in the long run.
• Financial Safeguard: Accidents and vehicle-related incidents can incur significant costs. Auto insurance ensures that local governments have the financial support needed to repair or replace vehicles, cover medical expenses, and handle legal fees if required, minimizing the impact on their budgets.
• Compliance and Assurance: Auto insurance coverage is often a legal requirement. Ensuring that government vehicles are properly insured demonstrates compliance with regulations, giving assurance to the public and stakeholders that the government is responsible and prepared to handle unforeseen incidents involving its vehicles. -
The cost of auto coverage is determined by several factors, including:
• Type of Operations: Government entities have varying levels of risk associated with their vehicles. For instance, a large district providing public transportation services has a much greater risk than a rural county with few agency vehicles.
• Number and Types of Vehicles: The number of vehicles, their types (e.g., trucks, cars, specialized vehicles), age, and value all impact the cost. A larger fleet or specialized vehicles might incur higher premiums.
• Driving History: The driving records of employees who operate these vehicles can influence costs. A history of accidents or traffic violations among drivers might also lead to higher premiums.
• Coverage Limits and Deductibles: The extent of coverage and the deductibles chosen affect the cost. Higher coverage limits and lower deductibles typically lead to higher premiums.
• Location and Usage: The location where vehicles operate and the frequency and nature of use also play a role. Urban areas with higher traffic density might pose more risk than rural settings.
• Claims History: A organization’s claims history can impact future premiums. A history of frequent or severe claims might result in higher costs. -
Auto physical damage losses are valued differently based on the type of coverage:
• Replacement Cost: This coverage pays for the cost of replacing the damaged vehicle with a brand-new one of similar make, model, and quality without factoring in depreciation. This is coverage is reserved for newer vehicles.
• Actual Cash Value (ACV): ACV coverage reimburses the current market value of the vehicle at the time it was damaged. It considers depreciation and factors in the vehicle's age, mileage, condition, and market value. The payout might be less than what you initially paid for the vehicle due to depreciation.
• Agreed or Stated Value: This coverage involves an agreement between the insurer and the policyholder regarding the vehicle's value before any loss occurs. The agreed or stated value is predetermined and documented in the policy. If the vehicle is damaged or totaled, the insurer pays the agreed-upon amount, regardless of the vehicle's actual market value at that time.
Workers Compensation
The Utah Local Governments Trust has more than 200 years of combined workers’ compensation experience to help protect you and your employees.
Our claims solutions merge seasoned adjusters and advanced systems alongside favored provider networks, discounts on prescription drugs, evaluations of provider bills and usage, oversight of medical cases, and vocational rehabilitation services as needed. This blend provides injured workers with a robust support system for prompt healing while empowering our policyholders to manage claims expenses effectively.
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A workers’ compensation policy provides support for injured employees' medical expenses and lost wages, as well as benefits for the families of workers who pass away due to job-related incidents. It also addresses your potential responsibility for covered claims.
The coverage consists of two primary sections: workers' compensation insurance and employer's liability insurance. Workers' compensation insurance handles medical costs and compensates employees for income lost because of work-related accidents. Employer's liability insurance shields employers from legal actions initiated by injured employees due to job-related occurrences. Like any insurance, there are specific conditions and exclusions applicable to both sections. -
State law require business owners and government agencies who have employees to carry workers' compensation insurance. Sole proprietors that wish to waive their rights to workers’ compensation coverage may apply for a waiver from the Utah Labor Commission.
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The cost of workers' compensation is calculated using several key factors, such as:
• Location
• Payroll size
• Nature of the work
• History of claims
Because workers’ compensation operates under a distinct calculation method and is subject to state regulations, rates fluctuate among businesses. To obtain an accurate projection for your business, requesting a quote is the most reliable approach.
Although there isn't a fixed, standardized workers' compensation rate, understanding the factors impacting your premium and taking steps to potentially reduce costs is crucial in securing a more budget-friendly rate. -
Payroll Inclusions:
• Wages or salaries, and retroactive wages or salaries
• Adjustments made by the employer to raise employee wages to minimum wage in payroll. This applies to federal, state, or local minimum wage adjustments
• Extra pay for overtime work
• Total pay received by an employee for commissions and draws against commissions in payroll
• Pay for holidays, vacations, sick time
• Bonuses and stock bonus plans
• Piecework, profit sharing, or incentive plans
• Amounts paid by the employer that normally would have been withheld to meet statutory obligations for insurance or pension plans (i.e. Medicare, Federal Social Security Act)
• Rental value of apartment or house provided to employees
• Value of lodging received by an employee as part of their pay
• Allowances or substitutes for money provided to an employee
• Value of meals employees received
• Money substitutes received by employees (i.e. store gift certificates, merchandise, or credits)
• Payments for salary reductions, health savings accounts, flexible spending accounts, employee savings plans, retirement plans, or cafeteria plans from employees' gross pay
• Annuity plans
• Expense reimbursements to employees that were not a verifiable expense
• Davis-Bacon or a similar wage laws
• Payment for filming commercials
Payroll Exclusions:
• Tips or other gratuities received by employees
• Value of special rewards for individual invention or discovery
• Payroll payments for active military duty
• Meal money for late work
• Pay for vacation for operations that are assigned to code 1016
• Expense reimbursements to employees when the employer records confirm that the expense was incurred as a valid business expense
• Allowable travel expenses that are permitted by any contract with a federal, state, or local government entity such as a city, borough, or village. The allowable travel expenses must be in addition to the current wage of the employee
• Employer-provided perks such as: use of company-provided automobiles, airplane flights, incentive vacations, discounts on property or services, club memberships, entertainment event tickets, educational assistance, relocation and moving expenses
• Employee discounts on goods purchases from employer
• Work uniform allowances
• Payments by an employer to group insurance or pension plans
• Exclude from the audit reimbursement expenses and flat expense allowances paid to employees only when all of the following conditions are met:
o The expenses or allowances are incurred for the business of the employer
o The amount of each employee's expense or allowance is shown separately in the employer records
o The amount of the expense or allowance approximates the actual expense incurred by the employee in the conduct of their work
• Employer contributions to employee benefits plans (i.e. health savings accounts, flexible spending accounts, employee savings plans, retirement plans, or cafeteria plans)
Payments by an employer into third-party trusts for the Davis-Bacon Act or a similar prevailing wage law
• Sick pay paid to an employee by a third party
• Dismissal or severance payments, except for time worked or vacation accrued
• Payments made by an employer or any public governmental entity to paid furloughed employees as a result of federal, state, and/or local emergency orders, laws, or regulations issued due to the COVID- 19 (coronavirus) pandemic which impact an employer's staffing or business operations.
Overtime
Hours worked for which there is an extra amount of pay over the regular rate of pay.
Overtime pay is not calculated at time and a half for workers compensation. Instead, each overtime hour is set to the same rate as all other hours worked. This is also referred to as “straight-time pay."
Specialty Coverage
Looking for comprehensive insurance coverage and expert risk management solutions in Utah? Look no further than the Utah Local Governments Trust. As the largest and most experienced risk pool in the state, we offer unparalleled access to both our customized policy forms and the commercial insurance market for specialized risks.
Whatever unique and seemingly uninsurable assets you have stewardship over, the Trust is your one-stop shop for all your insurance needs.
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• General Liability
• Excess Liability
• Law Enforcement Liability
• Employee Benefits Liability
• Errors & Omissions
• Professional Healthcare Liability
• Workers Compensation
• Business Auto
• Property and Equipment
• Earthquake and Flood
• Power Generation
• Airport Liability
• Pollution / Environmental Liability
• Dams
• Cyber Security
• Crime
• Surety & Fidelity Bonds
• Inflatables
• Underground & Above Ground Storage Tanks
• Special Events and more…
But that's not all. Our unique setup as a medical broker allows us to navigate the health insurance landscape on your behalf. We work with all major healthcare providers to secure comprehensive employee benefits, including ancillary medical coverage such as life insurance, accidental death & dismemberment (AD&D), dental, accidental dental, long-term disability (LTD), vision, HSA, HRA, FSA, and other supplemental health insurance options.
At the Utah Local Governments Trust, we're more than just an insurance provider; we're your all-in-one solution for insurance coverage and effective risk management strategies. Trust us to safeguard your needs efficiently and comprehensively.