Who is underwriting the insurance for all the Police Departments?
June 15, 2020 1:48 AM Subscribe
Who is doing the insurance underwriting for so many Police lawsuits to soon appear?
Who, or what; is doing the underwriting for so many cities; and more particularly; the Police departments that are about to be sued to oblivion?
Who, or what; is doing the underwriting for so many cities; and more particularly; the Police departments that are about to be sued to oblivion?
Many are in self-insurance pools so that larger verdicts or settlements won't bankrupt a single self-insurance fund, but then the premiums are adjusted based on claims history. Ultimately, it's the taxpayers who pay.
posted by yclipse at 4:30 AM on June 15, 2020
posted by yclipse at 4:30 AM on June 15, 2020
I have some experience with municipal insurance and want to clarify that while "self-insurance" means something particular in insurance circles - as described however briefly by yclipse - many cities use a more functional/colloquial definition of self insured where they just think they can afford whatever costs come with existing, including payouts on lawsuits. According to the most recent Comptrollers report NYC paid out almost 1Billion dollars to resolve about 14,000 lawsuits last year. Its just the cost of doing business and part of the budget.
posted by Exceptional_Hubris at 5:28 AM on June 15, 2020 [1 favorite]
posted by Exceptional_Hubris at 5:28 AM on June 15, 2020 [1 favorite]
https://comptroller.nyc.gov/reports/annual-claims-report/
Kind of fascinating to see all of the claims made against the city broken down by type, including the police.
My big takeaway is it needs to be easier to bring wrongful conviction suits against them.
posted by Exceptional_Hubris at 5:32 AM on June 15, 2020 [2 favorites]
Kind of fascinating to see all of the claims made against the city broken down by type, including the police.
My big takeaway is it needs to be easier to bring wrongful conviction suits against them.
posted by Exceptional_Hubris at 5:32 AM on June 15, 2020 [2 favorites]
You will probably be interested in this related concept Qualified Immunity
posted by bdc34 at 7:12 AM on June 15, 2020
posted by bdc34 at 7:12 AM on June 15, 2020
+1 to Exceptional_Hubris' comment - my city, like many, does not have an insurance policy at all. They simply build in funds to the city budget to cover their expected expenses for lawsuits for everything ranging from police malpractice, land use takings, traffic, ice slips and falls, dog parks, and everything under the sun that someone might sue the city for. There is no underwriter because there is no insurance company involved.
posted by epanalepsis at 7:41 AM on June 15, 2020 [2 favorites]
posted by epanalepsis at 7:41 AM on June 15, 2020 [2 favorites]
" many cities use a more functional/colloquial definition of self insured where they just think they can afford whatever costs come with existing, including payouts on lawsuits. "
And in many states, when a city department or governmental body gets hit with a big verdict, they levy a tax for that (in my state it's called the "tort fund" usually), and that tax is uncapped -- the government levies however much they need to pay for that lawsuit. So if your tiny town's two-man police department gets hit with an $8 million civil rights verdict, you and your neighbors are paying $8 million in extra taxes next year to pay for that.
(I actually think departments SHOULD be required to insure commercially, and the underwriting should be cop-by-cop. One reason bad cops can stay on the force is that there's NO FINANCIAL PENALTY for it. It never costs too much. The people the cops are abusing are the people who foot the bill for paying for the lawsuits and settlements. City governments have to deal with police unions and get pressured into not firing bad cops. But actuaries just care what it costs to insure them and it's not their problem if your cop sucks.)
posted by Eyebrows McGee at 7:51 AM on June 15, 2020 [9 favorites]
And in many states, when a city department or governmental body gets hit with a big verdict, they levy a tax for that (in my state it's called the "tort fund" usually), and that tax is uncapped -- the government levies however much they need to pay for that lawsuit. So if your tiny town's two-man police department gets hit with an $8 million civil rights verdict, you and your neighbors are paying $8 million in extra taxes next year to pay for that.
(I actually think departments SHOULD be required to insure commercially, and the underwriting should be cop-by-cop. One reason bad cops can stay on the force is that there's NO FINANCIAL PENALTY for it. It never costs too much. The people the cops are abusing are the people who foot the bill for paying for the lawsuits and settlements. City governments have to deal with police unions and get pressured into not firing bad cops. But actuaries just care what it costs to insure them and it's not their problem if your cop sucks.)
posted by Eyebrows McGee at 7:51 AM on June 15, 2020 [9 favorites]
And in many states, when a city department or governmental body gets hit with a big verdict, they levy a tax for that (in my state it's called the "tort fund" usually), and that tax is uncapped -- the government levies however much they need to pay for that lawsuit. So if your tiny town's two-man police department gets hit with an $8 million civil rights verdict, you and your neighbors are paying $8 million in extra taxes next year to pay for that.
This. this is how a $10 million dollar judgment was paid for my rural county.
posted by domino at 8:48 AM on June 15, 2020 [4 favorites]
This. this is how a $10 million dollar judgment was paid for my rural county.
posted by domino at 8:48 AM on June 15, 2020 [4 favorites]
Generally speaking, we are, as taxpayers. This is why it is baffling to me that fiscal conservatives aren't more enthusiastic about stopping police violence. The economic impact of stopping police violence cannot be overstated!
Thought leaders who are themselves capitalists have been considering this topic for quite a few years now, here's an interesting article on it: https://www.theatlantic.com/politics/archive/2017/06/insurance-companies-police/529833/
For your literal answer, I know this sounds really elementary, but google the term "police department liability insurance." Six companies list for me on the first page of results.
posted by juniperesque at 11:39 AM on June 15, 2020 [3 favorites]
Thought leaders who are themselves capitalists have been considering this topic for quite a few years now, here's an interesting article on it: https://www.theatlantic.com/politics/archive/2017/06/insurance-companies-police/529833/
For your literal answer, I know this sounds really elementary, but google the term "police department liability insurance." Six companies list for me on the first page of results.
posted by juniperesque at 11:39 AM on June 15, 2020 [3 favorites]
In Wisconsin there's some large mutual insurance pools. I represent a city with a police department and we're insured through one of these.
posted by notjustthefish at 9:24 PM on June 15, 2020
posted by notjustthefish at 9:24 PM on June 15, 2020
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posted by geoff. at 3:30 AM on June 15, 2020 [1 favorite]