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Oklahoma Municipal Assurance Group
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Insurance Coverage

OMAG Municipal Liability Protection Plan (MLPP) - Who Is Covered?

OMAG Municipal Liability Protection Plan (MLPP) - Who Is Covered?

The responsibility to respond to our members' coverage questions and provide coverage interpretation primary falls on OMAG’s Underwriting and Member Services Departments with support provided by OMAG’s Legal and Risk Management Departments. Providing a clear and consistent response to these inquiries is always our goal.

Our members occasionally ask “Who is covered under the municipality’s general liability plan and how does this plan define an employee? 

Who is covered? Any of the following are covered while acting within the scope of their municipal duties: any member of the municipal governing body, any elected or appointed official of the municipality, any member of boards and commissions of the municipality and any employee of the municipality, as defined in the agreement. 

Definition of Employee: OMAG’s plan mirrors the terms of the Governmental Tort Claims Act in defining the term “employee.” OMAG’s plan defines employee as "any person who has been authorized to act on behalf of the plan member whether that person is acting on a permanent or temporary basis, with or without being compensated, or on a full or part time basis. It includes all elected or appointed officers, members of governing bodies, and other persons designated to act for the plan member, but the term does not mean a person or other legal entity while acting in the capacity of an independent contractor or an employee of an independent contractor." 

Example: An independent contractor would be a person or company that the municipality hires to do a specific job, such as a local contractor to do a street project or an electrical company providing installation or repair. 

NOTE: You should always require the independent contractor to supply the municipality with a certificate of insurance. 

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Liability Coverage for Police K-9s

Liability Coverage for Police K-9s

The responsibility to respond to our members' coverage questions and provide coverage interpretation primary falls on OMAG’s Underwriting and Member Services Departments with support provided by OMAG’s Legal and Risk Management Departments. Providing a clear and consistent response to these inquiries is always our goal.

Our members occasionally ask, “Does the Municipal Liability Protection Plan provide coverage for our police department K-9s? And is there coverage provided when they are off duty?

The OMAG Municipal Liability Protection Plan does provide automatic general liability coverage for your K-9s while on duty. OMAG requires the K-9 and the handler to maintain their CLEET certification. 

One example of how our coverage might work would be: Let’s say the dog is trained to be passive in his response by barking or going on point to indicate he recognizes something, and damage occurs when he jumps on a vehicle. This damage would not be expected, as the normal passive response would not lead to any damage occurring. A third party can file a claim for their damages in this instance.

In another instance, if the dog is trained to respond to drug search in an aggressive manner (by jumping up onto the vehicle to indicate something has been found) and damages the vehicle, then the OMAG policy would not provide coverage.  In this case the officer should take measures (cover paws) if he knows that the dog will respond by jumping on the vehicle. This would be damage that would be expected or intended and is excluded on the policy.

When the K-9 is off duty and being kenneled, it is important to remember that the OMAG policy would respond to a claim filed for bodily injury or property damages only if the K-9 is being kenneled on city property. If the K-9 is being kenneled at a private residence, that individual’s homeowner’s policy would respond, should bodily injury or property damage occur. 

The OMAG policy does not provide coverage for animal mortality, but we do have a market that provides for that type of policy/coverage separately if you should be interested.  

Please contact Randy Stone, Underwriting Director, at (800) 234-9461 or rstone@omag.org if you have questions about this coverage or any other questions about the policies we offer.

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Municipal Fire Department Controlled Burns

Municipal Fire Department Controlled Burns

The responsibility to respond to our members' coverage questions and provide coverage interpretation primarily falls on OMAG’s Underwriting and Member Services Departments with support provided by OMAG’s Legal and Risk Management Departments. Providing a clear and consistent response to these inquiries is always our goal.

Our members occasionally ask “Does our Municipal Liability Protection Plan (MLPP) provide coverage for any property damage or bodily injury that might occur if our fire department is executing a controlled burn?” 

If your Fire Marshall or Fire Chief has jurisdictional authority to execute these “controlled burns” your next call should be to the Oklahoma Department of Environmental Quality to notify them and get further instruction on proper handling including any permit that is required or notice to property owners.  As with any other municipal duty performed, we always have a responsibility to protect the public and follow responsible procedure.   

If the proper procedures and regulations are followed OMAG does provide coverage under the MLPP.  Please don't hesitate to contact Randy Stone, Underwriting Director, if you have further questions about this topic.  Randy can be reached at rstone@omag.org or (800) 234-9461.

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Hired & Non-Owned Auto Liability, Physical Damage and Other Auto Coverage Issues

Hired & Non-Owned Auto Liability, Physical Damage and Other Auto Coverage Issues

The responsibility to respond to our members' coverage questions and provide coverage interpretation primary falls on OMAG’s Underwriting and Member Services Departments with support provided by OMAG’s Legal and Risk Management Departments. Providing a clear and consistent response to these inquiries is always our goal.

OMAG provides Hired & Non-Owned Auto Liability to all Municipal Liability Protection Plan members that schedule their autos under our coverage. This coverage provides liability coverage on an excess basis for vehicles that are not owned by the city but are driven by an employee of the city in the scope of their duties on behalf of the city.  

An employee’s vehicle would fall in the category of a non-owned vehicle with the employee’s personal insurance being primary. This coverage does not include physical damage to the non-owned vehicle.

Read further for specific scenarios when coverage would and would not apply.

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Coverage For Personal Property of Others

Coverage For Personal Property of Others

The responsibility to respond to our members' coverage questions and provide coverage interpretation primary falls on OMAG’s Underwriting and Member Services Departments with support provided by OMAG’s Legal and Risk Management Departments. Providing a clear and consistent response to these inquiries is always our goal.

Our members occasionally ask: “Does the Municipal Property Protection plan provide coverage for our employees' personal property or property that the city stores belonging to someone other than the city?” 

The Municipal Property Protection plan states as follows: PROPERTY COVERAGE FORM / B. Coverage / 1. Covered Property / b. Business Personal Property located in or on the buildings at the plan member’s premises or in the open (or in a vehicle) within 1,000 ft. of the plan member’s premises, consisting of the following unless otherwise specified in the Supplemental Coverage Declarations.  (7) Personal Property of Others (including the plan member’s employees) used in the plan member’s business that is in the care, custody or control of the plan member or for which the plan member has agreed in writing to insure prior to any loss or damage. 

We would advise that unless the city has agreed in writing to cover this personal property, prior to a loss, and that personal property has been scheduled on the plan member's Municipal Property Protection Plan (and a premium has been charged) the employee should look to their own personal homeowner’s coverage. Even if the city agreed to cover this personal property it would only be covered in or on a building or in a vehicle within 1000 ft. of the premises. The deductible for business personal property would apply and as the minimum deductible of $1,000.00 would not appear to help in most cases, we would not think our members would be interested in covering property such as personal phones, personal laptops, office decorations etc. 

We would also advise that this coverage only applies when the property of others is used in the plan member’s business. Property which is in your care, custody or control which is not used in your business (e.g. a vehicle impounded by the police and stored at your facility) would not be property subject to coverage under the Property Plan. The plan member’s liability for damage to that property would fall under the tort claims act. OMAG’s Municipal Liability Protection Plan, however, excludes losses “arising out of damage to or loss of property, including money, in the care, custody or control of the plan member, or to which the plan member is for any purpose exercising physical control.” As such, there would be no coverage for a liability claim relating to personal property that was in the care, custody or control of the plan member and which was not being used in the plan member’s business.

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Understanding Your OMAG Municipal Property Protection Plan - How Are Municipal Properties Covered?

Understanding Your OMAG Municipal Property Protection Plan - How Are Municipal Properties Covered?

As personnel in municipal offices change, replacing the knowledge and experience of the person that served your municipality can be difficult.  Understanding insurance coverage when so many other things seem to demand our attention may not be a priority. Please let the following serve to provide a basic description of the coverage OMAG provides.  

Building Coverage – Insures the city’s structures such as: buildings, water storage towers and tanks, water/waste water plants (including lift stations), stationary generators, electric transformers & substations, emergency sirens, park structures (playground equipment, pavilions, fencing, lighting, skate/splash parks, concessions, score boards) etc.

Contents Coverage – Insures the city’s property inside or on those structures such as: furniture or fixtures, electronic data processing equipment (such as computers, printers, copiers, word processors, facsimile machines, multi-functional telephone equipment), machinery or equipment (such as equipment used for food preparation or storage); or other business personal property used in the city’s business. This property must be located in or on the buildings owned by the city or within 1,000 feet of the building's premises. 

Mobile or Contractors Equipment Coverage – Insures mobile machinery and equipment such as: backhoes, tractors, mowers, portable generators, etc.

Miscellaneous Equipment Coverage – Insures equipment installed in your emergency vehicles such as: sirens, light bars, radar, etc., or equipment used in the city’s business transported outside 1000 feet of a covered building's premises such as: hand-held radios, utility reading equipment, tools, laptop computers, cameras etc.  

Fine Arts Coverage – Insures property of rarity, historic value or artistic merit such as: paintings, statuary, rare books, antique furniture etc.   

To assure adequate protection in case of a loss, your property needs to be reviewed annually to insure it is listed on your schedules at replacement cost value. These schedules of your covered properties are sent to you each year when we send your Municipal Property Protection Plan renewal flash drive.   

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Understanding Your Vehicle Auto Liability and Physical Damage Coverage

Understanding Your Vehicle Auto Liability and Physical Damage Coverage

As personnel in municipal offices change, replacing the knowledge and experience of the person that served your municipality can be difficult.  Understanding insurance coverage when so many other things seem to demand our attention may not be a priority. Please let the following serve to provide a basic description of the coverage OMAG provides.   

Auto Liability provides bodily injury and/or property damage coverage to a third party for an accident caused by a municipal employee involving a municipal vehicle.

Physical Damage Coverage is for damage to the municipality’s vehicles. There are three types of vehicle physical damage coverage available through OMAG: Collision, Comprehensive and Specified Perils.

Collision Coverage provides coverage for your vehicle if it collides or crashes into another vehicle or stationary object, such as a pole or fence.

Comprehensive Coverage and Specified Perils Coverage provide coverage for your vehicle for a “loss from any cause except collision,” but Comprehensive is a broader coverage than Specified Perils. OMAG suggests that you consider either Comprehensive Coverage or Specified Perils Coverage on each of your vehicles; you do not need both.

Comprehensive Coverage provides coverage for your vehicle for all risks covered by Specified Perils as well as glass breakage, damage done by an animal, and loss resulting from rain, snow, or sleet (whether or not wind driven), which Specified Perils does not cover.

Specified Perils Coverage provides coverage only for light and heavy trucks, ambulances, vans and SUV’s and is not available for private passenger vehicles, such as police units or private automobiles used by municipal officials. OMAG’s Specified Perils Coverage has no deductible: however, it only covers the following specific risks that may cause damage to your vehicles:  Fire or explosion, theft, windstorm, hail, earthquake, flood, mischief or vandalism, and the sinking, burning, collision or derailment of any conveyance transporting the covered vehicle.

To assure adequate protection in case of a loss, your autos need to be reviewed annually to insure they are listed on your schedules. These auto schedules are sent to you each year when we send your Municipal Liability Protection renewal flash drive.  

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Municipal EMT or First Responders

Municipal EMT or First Responders

The responsibility to respond to our members’ coverage questions and provide coverage interpretation primary falls on OMAG’s Underwriting and Member Services Departments with support provided by OMAG’s Legal and Risk Management Departments. Providing a clear and consistent response to these inquiries is always our goal. 

Our Municipal Liability Protection Plan under GENERAL PROVISIONS / Part VI EXCLUSIONS provides: “we have no obligation to pay nor do we have any obligation to defend any claim against a plan member on account of: 

5. Loss arising out of: 
     a. the rendering of or failure to render medical, surgical, dental, x-ray or other treatment;                any service or treatment conducive to health; or any cosmetic or tonsorial service or                  treatment” 

HOWEVER, this exclusion does not apply to certified First Responders or licensed Emergency Medical Technician (EMT) services of or provided by a plan member. This exclusion does not apply to a plan member while the plan member is engaged as a student training to secure certification as a First Responder or an EMT license. The plan member who is engaged in such training must be under the direct supervision of others licensed or certified to undertake such activities in order to be covered under this agreement. Services of a certified First Responder or licensed EMT include the transportation and immediate medical care provided to the emergency patients prior to their arrival at a medical facility, as those terms are defined by 63 Oklahoma Statute $ 1-2503, as amended.  

If your Fire Department personnel meet these criteria there would be coverage provided as long as they are performing these duties within city limits. Outside of city limits Oklahoma Statute Title 11 / Chapter 1 / Article XXIX – Fire Departments / Section 29-108 Addresses Fire Department Answering Calls Outside Corporate Limits Considered Agent of State – Liability for Damages “A municipal Fire Department answering any fire alarms or performing fire prevention services or rescue, resuscitation, first aid, inspection or any other official work outside the corporate limits of its municipality shall be considered an agent of the State of Oklahoma, and acting solely and alone in a governmental capacity. Said municipality shall not be liable in damages for any act of commission, omission, or negligence while answering or returning from any fire or reported fire or doing or performing any fire prevention work or rescue, resuscitation, first aid, inspection or any other official work”. As such, there is no liability for the City or Town to be covered when performing these duties outside the city limits. 

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Risks Associated With Municipally Operated Ambulance Services

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Risks Associated With Municipally Operated Ambulance Services

Oklahoma law authorizes municipalities to either contract out ambulance services or to regulate and control ambulance services pursuant to a duly enacted ordinance or regulation.[i] There are risks associated with operating an ambulance service.  Because of those risks, liability and workers compensation insurance is required by law.  The Oklahoma Governmental Tort Claims Act[ii]  and the Oklahoma Administrative Workers Compensation Act provides certain levels of coverage. If the municipality chooses to contract out the services, then the contractor is required to provide the liability coverage in a sum of not less than the Oklahoma Governmental Tort Claims limits and workers compensation insurance. 

There are many liability issues when assessing the risks associated with a municipality operating an ambulance service.  Municipalities running an Emergency Management Service (EMS), such as an ambulance service, have a responsibility, or duty, to serve their communities in a timely and competent manner.  This responsibility begins when a call for assistance comes into the dispatch center and generally ends with transfer of care to the receiving facility. The citizens who call EMS for assistance expect that each step in the process will be handled quickly, safely and appropriately.  When calls for assistance are not handled properly, it can lead to liability.  The areas of liability fall into three general categories:  general liability stemming from injuries that occur as a result of the negligence by an EMS employee, automobile accidents, including property damage and bodily injury, and workers compensation for the employees.

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