Travelers has announced an enhancement to 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.
“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 of Travelers Public Sector Services. “Travelers understands the budgetary constraints of public entities and has developed the Limited Special Expenses Coverage for Key Employees to meet the unexpected needs that would arise in such a situation.”
According to Travelers, 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 company said that the enhancement was 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 said that the Limited Special Expenses Coverage for Key Employees policy enhancement complemented its existing portfolio of products and services for the public sector industry, including:
- PEML
- Law enforcement liability
- Public entity employment-related practices liability
- Public entity general liability
- CyberFirst liability
- Automobile
- Workers compensation
- First party
- Umbrella