Liability coverage may be available for your local government service providers under the Liability Protection Agreement.
The MIABC recognizes that local governments often hire community groups, associations, and individuals to provide services on their behalf. These individuals and groups may provide services such as:
- Recreation instruction;
- Trail, campground, or park operation and maintenance;
- Local government event management; and
- Inspection services.
Our members can now apply for liability coverage for individuals, groups, and associations that provide services for, or on behalf of, their local governments, up to a limit of $5,000,000.
These individuals, groups and associations must be individually sponsored by a member in order to qualify for “associate member” status. Once accepted as an associate member, these parties will be entitled to coverage under the Liability Protection Agreement, but only for services provided for, or on behalf of, the sponsoring member.
In order to qualify as an associate member:
The associate member must be sponsored by an existing MIABC member.
Approval and Underwriting
The MIABC must approve and underwrite the use of the program for the proposed Associate Member.
The sponsoring member must have a written agreement for the provision of services with the associate member (the “Service Provider Agreement”).
The services provided are services to the community provided for, or on behalf of, the sponsoring member.
The Service Provider Agreement must have been approved by the sponsoring member’s council or board by resolution or bylaw.
The sponsoring member must pay an additional premium on behalf of the associate member.
It is important to understand by adding an associate member to your liability policy it means that the sponsoring member is taking on the liability for the individual, group or association when they are providing the services outlined in the Service Provider Agreement.
The sponsoring member’s deductible will apply to claims brought against the associate member and the sponsoring member will be responsible for the payment of any costs incurred below the deductible.
In addition, all claims brought against the associate member will form part of the sponsoring member’s claims history and experience rating.
If you’d like to learn more about our Associate Member Program, we would be happy to help!