Catastrophic Liability Insurance Program

Public Entity > Programs > Catastrophic Liability Insurance Program (CLIP)

Catastrophic Liability Insurance Program (CLIP)

To protect public entities against potentially crippling litigation losses, Alliant Insurance Services created the Catastrophic Liability Insurance Program (CLIP), a group purchase excess liability program.

Recent large litigation losses by public entities confirm evidence that jury verdicts are on the rise, and public entities have joined large corporations in the realm of catastrophic verdicts. Some examples of large litigation losses by public entities include:

$49 million settlement in streets and roads litigation
$39 million verdict in a land-use lawsuit
$26 million award in a swimming pool lawsuit
$19 million award to a single plaintiff in an employment practices lawsuit
$23 million settlement in litigation involving a car accident at a street closure event

CLIP is available nationwide to individual public agencies, risk-sharing public entity pools, and individual members of pools that seek more coverage than provided under their pool programs.

CLIP Features

Group-purchased excess liability coverage attaches excess of the member’s current program
Program provides excess general, auto, professional, and public officials liability
Members are individually rated but benefit from pricing discounts and rate stability offered by a group purchase program
Members avoid the minimum premiums that are typically required for entities purchasing excess layers on a standalone basis
Separate limits per loss event—no pooling or risk sharing
Limits up to $75 million are available and can be tailored to fit the individual needs of the member
The typical attachment point is $25 million, but the program has the flexibility to attach above or below $25 million if needed
The program is open to all types of public agencies, including, but not limited to, schools, universities, transit districts, special districts, cities, counties, and utilities

For more information, contact:

Daniel Howell

(415) 403-1426

Gordon DesCombes

(949) 660-8115

Tom E. Corbett

(949) 660-8132

The Specialty Leader Since 1925

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