Liability Program

Through a blend of self-insurance and reinsurance, ICRMA delivers $35M of limits per occurrence to its Liability Program members to protect them from third-party losses associated with tort liability, automobile liability, public officials’ errors and omissions, and employment practices liability. Click here to view the 2021-22 Liability Memorandum of Coverage.

Because each public agency has a unique risk appetite, members can determine how much risk they are willing to accept by selecting a self-insured retention from $250k to $8M. The chart below shows how the various layers of loss are funded from the member’s retentions up through the reinsurance that ICRMA purchases.

Liability Program Structure for 2021-22

Members have the choice of utilizing one of two third-party administrators (TPAs), Carl Warren & Company or AdminSure, to oversee day-to-day claims management. ICRMA hires a Liability Program Manager to oversee claims likely to exceed the member’s retention and to ensure members and ICRMA receive the best results possible. ICRMA utilizes a third-party vendor to perform biennial claims audits on behalf of program members to ensure TPA claims handling is meeting ICRMA’s approved standards.

Click the following for the most recent liability program actuarial study.

Special Notice on Drones

Under the MOC, coverage is provided for drones that are owned by member Cities and operated in accordance with FAA guidelines (see the FAA website for more information).

If your city acquires a drone, it must be reported, along with the basic underwriting information, in order to be eligible for coverage. Please complete this questionnaire and send a copy to the broker team: Susan Blankenburg, Gallagher.

Report a Liability Claim

ICRMA member claims should be entered in the third-party claim administrator’s system within two working days of receipt of the loss. Within 30 days of the City’s receipt of notice of a claim, the Member is required to report the claim to ICRMA in accordance with the applicable Memorandum of Coverage (MOC). Some members have contractually transferred this responsibility to their selected TPA, but this remains the Member’s responsibility per the MOC.  ICRMA’s program manager will be responsible for reporting to ICRMA’s re-insurer(s) or excess insurer(s).

View the MOC for liability claim reporting requirements.

All ICRMA reportable claims should be emailed to:

Public Crisis Event Coverage

Public Crisis Event Coverage provides payment for expenses incurred during an event that generates adverse multi-state or national news, or that has components of escalating intensity that interfere with normal operations of the City. ICRMA’s reinsurer will pay, on behalf of the Member City, reasonable and necessary expenses incurred during a crisis event. This program offers coverage from the first dollar and is not subject to a deductible or self-insured retention.

Crisis Events must be reported as soon as possible to trigger coverage. Members receive assistance from a crisis communication firm to respond to the media, and to maintain or restore public confidence in the Member agency. Please see the Crisis Response Protocol page for a complete description of the coverage, as well as reporting information.

Third Party Performance Standards

The ICRMA Governing Board adopted Performance Standards for liability TPAs to ensure appropriate claims handling. Click to download a PDF version of the Liability TPA Performance Standards.

Defense Panel

The ICRMA Governing Board adopted Litigation Management Policies and Procedures to ensure appropriate claims handling. Click to download a PDF of the LMPP effective August 12, 2021.

Should you require the use of the appendices they are listed below:

  1. Appendix B: Engagement Letter (TPA Adjusters)
  2. Appendix C: Case Analysis (Defense Panel)
  3. Appendix D: Budget (Defense Panel)

*To locate the approved defense panel listing, please login to the member only side of the website.

Adjusters Report

This report template was created to ensure adjusters provide consistent and complete updates to ICRMA.

TPA Timeline Summary

The timeline summary is meant to serve as a helpful summary. Please refer to the Performance Standards for complete details.

Timeframe Action
2 working days
  • Open claim
  • Acknowledge receipt of claim
  • Complete two-point contact
  • Set reserves
3 working days
  • Within 3 days of significant developments, adjust reserves to reflect status
15 working days
  • Complete investigation
  • Liability and damages assessment
30 days
  • Prepare captioned report
60 day intervals
  • Update action plan
  • Update diary
90 day intervals
  • Update reserves
60 days post settlement/verdict
  • Ensure all invoices have been received
  • Close claim