The structure, pace, and short-term nature of political campaigns expose these organizations to an array of unique risks. Many campaigns mistakenly operate under the assumption that they are protected by government immunity or that even if they wanted to pursue liability coverage, no carrier would be willing to provide it. Coverage is not only available, its also affordable, and here's why every political campaign should have it:
1. Certain coverages may be legally required. Workers compensation coverage is required by law in nearly every state. Paid employees, such as campaign and finance managers, require workers compensation coverage. Failure to carry coverage could result in steep penalties and fees.
2. An uninsured campaign leaves donor funds exposed to legal suits. Incidents involving property damage or bodily injury could result in substantial legal suits that drain key funds and time. General liability coverage, paired with a sound risk management program, is the best form of protection.
3. Uninsured losses and legal suits can deter donations. Potential donors often see messy legal suits as a reason not to contribute to a campaign, which can effectively derail a campaign. Having the proper insurance coverage is the best way to ensure a campaign stays on track.
4. Liability insurance is required by your landlord and special events venues. In order to rent space, whether it is for an office or a high end venue for a fundraiser, you must have general liability coverage. Campaigns often seek premises only coverage and purchase special events coverage when required, which can be tedious and costly. Fortunately, there is an option available though the political campaign insurance program for a general liability insurance that covers both offices and off premise events.
5. Campaigns are often victims of employee theft. Common acts include funds transfer fraud, forgery, computer fraud, and extortion. The theft of campaign funds can leave these organizations blindsided. Including crime coverage as part of a campaign insurance package can help campaigns recover from theft.
6. Employees using personal autos for campaign purposes can expose the organization to auto law suits. Adding the proper endorsements to general liability coverage can protect the campaign from auto accidents involving property damage and bodily injury.
If you thought insuring a political campaign was impossible or just not applicable, it may be time to reconsider.