Work Comp for Municipalities: 3 Things You Need to Know

November 9, 2022 • Alan Combs

At Missouri Employers Mutual, we have extensive experience writing and servicing municipal organizations. Municipalities are responsible for several types of public services. As a result, there are unique challenges when finding the right workers compensation policy. 

Watch below as Jennifer Loy, MEM’s Underwriting Supervisor, explains what needs to be considered when writing a municipality and what we can do to help.  


What makes municipalities different? 

Municipalities tend to have a wide variety of exposures. For example, they often employ administrative staff and civil servants, law enforcement, and Animal Control departments. Each area must be carefully reviewed to understand the associated risks. 

Why can writing a municipality be challenging? 

Municipalities have a lot to consider when looking for a work comp policy, such as a large array of class codes and unexpected health risks. Discussing these challenges upfront helps to properly insure a policyholder. 

How is the premium rate determined? 

Many municipalities work within a very tight budget. They often feel like they don’t have the funds for protective equipment and training. However, early investment in safety solutions can result in more savings later. 

To ensure the organization is doing everything it can to get the best rate, it’s important to look at: 

  • Demographics. How large is the municipality? How many people live there?  
  • Losses. Has the municipality experienced any prior losses? How have they affected the experience modification factor (e-mod)? 
  • Risk. Does the municipality operate a fleet? Do employees receive safety training? Are there any hazards specific to the job or local area?  

Proper management in each of these areas can help reduce costs. 

Partnering with MEM and Previsor

Every municipality is different. We ensure everyone is properly classified, enlisting safety professionals, underwriters, and a public entity specialist to understand the needs of various municipal departments. 

November 9, 2022
Alan Combs
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