Fire departments operate in high-risk environments where liability exposures are constant and evolving. Whether responding to emergency calls, managing personnel, or conducting training exercises, fire departments face legal and financial risks that can lead to costly claims and lawsuits.
While primary insurance policies such as general, auto, and property liability provide critical protection, they have coverage limits. A catastrophic event — such as a fire truck crash, employment-related lawsuit, or negligence claim — can easily exceed these limits, leaving the department financially vulnerable. Excess liability insurance serves as an essential safeguard, stepping in when primary policy limits are exhausted. For insurance agents working with fire department clients, ensuring they have this additional layer of protection is crucial to their long-term financial stability.
Understanding the Gaps in Primary Insurance Coverage
Fire departments typically carry a variety of primary insurance policies to protect against common risks, including:
- Commercial general liability: Covers bodily injury, property damage, and legal defense costs
- Business auto insurance: Covers accidents involving fire trucks, ambulances, and other department vehicles
- Public officials and management liability: Covers claims related to wrongful termination, discrimination, and other employment-related disputes
- Employer liability: Covers work-related injuries not covered by workers’ compensation
While these policies provide fundamental protection, many high-cost claims can exceed their coverage limits, leaving departments responsible for the remaining costs. Such scenarios can result in budget cuts, service reductions, or even the closure of volunteer departments that cannot afford the financial burden of large settlements or legal fees.
Key Legal Risks Fire Departments Face
Fire departments are frequently named in lawsuits involving liability, negligence, and employment disputes. Some of the most common and costly risks include the following.
Fire Apparatus Crashes & Auto Liability
Fire trucks and emergency vehicles must navigate traffic at high speeds under stressful conditions. Despite training and safety protocols, accidents involving fire apparatus are common, leading to severe injuries, property damage, and even fatalities.
When a fire truck is involved in an accident, the resulting claims can be substantial — covering medical expenses, legal settlements, and pollution cleanup costs if hazardous materials are involved. While business auto insurance provides coverage, these claims can quickly exceed policy limits, requiring an additional layer of protection from excess liability insurance.
Civil Rights & Employment-Related Lawsuits
Fire departments are also at risk for lawsuits related to employment practices and civil rights violations. Departments have faced legal action for:
- Wrongful termination and discrimination claims
- Harassment and hostile workplace lawsuits
- Retaliation against whistleblowers
Public officials and management liability insurance provides protection for many of these claims, but high-profile cases can result in multimillion-dollar settlements. Without excess liability insurance, fire departments could be forced to divert funds away from essential services to cover legal costs.
Negligence & Property Damage Claims
Fire departments can also be held liable for damages related to:
- Alleged delays or failures in fire response leading to property destruction
- Water damage from firefighting efforts
- Inadequate fire inspections or training that result in preventable losses
While commercial general liability insurance provides some coverage, businesses and homeowners may sue for damages that exceed policy limits, especially in cases involving extensive financial losses. Excess liability insurance ensures departments have the necessary funds to cover large claims.
How Excess Liability Insurance Fills the Coverage Gap
Excess liability insurance extends protection beyond the limits of primary policies, providing additional financial security when large claims arise. When a fire department’s primary insurance policy reaches its limit, excess liability insurance steps in to cover the remaining costs, ensuring the department does not face financial devastation.
Excess liability insurance applies to claims exceeding the limits of:
- Commercial general liability
- Public officials and management liability
- Business auto liability
- Employers’ liability
The FirePlus excess liability policy offers key features, including:
- Duty to defend: Provides legal defense coverage beyond primary policy limits
- Defense outside the limit: Legal fees do not erode the total coverage amount
- Following form coverage: Ensures consistency with underlying policies
- $10 million capacity: Provides significant financial protection for large claims
By securing excess liability insurance, fire departments can operate with confidence, knowing they have comprehensive protection against unexpected financial losses.
Why Insurance Agents Should Recommend Excess Liability Insurance
As an insurance agent, ensuring your fire department clients are fully covered is a crucial part of risk management. Many departments assume their primary policies provide enough protection, but in reality, one high-value lawsuit or accident can easily exhaust those limits.
Recommending excess liability insurance:
- Protects fire departments from financial ruin by covering high-cost claims
- Strengthens risk-management strategies by providing additional layers of security
- Demonstrates your value as a trusted advisor who understands the unique risks fire departments face
- Differentiates your services by offering proactive solutions tailored to emergency service organizations
By taking a proactive approach, you help your clients avoid financial uncertainty and continue their mission without disruption.
Ensure Fire Departments Have the Coverage They Need
Fire departments operate in an environment where risks are unpredictable, and liability claims can be costly. While primary insurance policies provide essential protection, they often fall short when faced with catastrophic claims, legal battles, or multimillion-dollar settlements.
Excess liability insurance serves as a critical safeguard, enabling fire departments to continue their vital work without the threat of financial devastation. Recommending this coverage to your fire department clients is an essential step in helping them manage risk effectively.
To learn more about how excess liability insurance can protect fire departments from high-cost claims, contact FirePlus today at (855) 201-8880.
About Provident FirePlus
Founded in 1902, our rich history involves the creation of custom firefighter insurance benefits in 1928. Today, Provident FirePlus continues to be a pioneer in developing insurance programs for firefighters, EMS providers, municipal entities, and law enforcement. In addition, we provide Special Risks insurance for various volunteer and nonprofit groups. Give us a call today at (855) 201-8880 to speak with one of our representatives.