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Uncertain Future for Local Government Property Insurance Fund Update

Thursday, February 5, 2015
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These recent developments can significantly impact public entities. Therefore, we strongly recommend you discuss this with an insurance professional immediately.

This week Governor Walker introduced his 2015-17 biennial state budget plan to the Legislature that includes some significant changes for public entities. Most notably, Walker has recommended closing the Local Government Property Insurance Fund to new policies and to non-renew existing policies.

Background

Created in 1903 by the Wisconsin State Legislature, the Local Government Property Insurance fund was established to provide affordable property insurance for all state properties. Over the next several years the authority of the Fund was extended counties, properties of cities, towns, villages, school districts and library boards.

In 2015, Governor Walker has announced that affordable property insurance products are available in the insurance market today and that there is no longer a need for this state fund. The agency will continue to operate the fund until all existing policyholders have terminated coverage.

Practical Impact on Wisconsin Municipalities.

In a practical sense, this change will significantly impact municipalities, school districts and library boards dependent on the state fund and especially those that have not implemented mitigation techniques to prevent claims such as Safety & Loss control programs.

Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.

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