Public Sector

We help public entities address complex risks, stay on budget, and lower total cost of risk though comprehensive risk transfer and management solutions.

For public entities, including those in the municipal, education, healthcare, and non-profit industries, risk management is a key element of governance.

However, in the face of ongoing budgetary restraints, public organisations often need innovative strategies that can help lower the total cost of risk while still supporting frontline service improvements. As the pandemic recovery continues, many local governments are experiencing budget shortfalls due to dwindling tax revenue, record unemployment, and rising healthcare costs. The need to manage risks – while keeping down costs – has never been more critical.

With more than four decades of public sector experience, Marsh can help you assess your public sector’s current risk financing strategy and generate new savings through data-driven decisions. Using our expertise and industry-leading analytics platform, we’ll work with you to build your organisation’s unique profile and determine an approach that drives value and mitigates risk.

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Top three risks for public services

The 2023 Global Risks Report explores critical short-term dangers and escalating risks over the next decade. Read our top three risks for public services.

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Reframing insurance risk

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Designing insurance risk frameworks

An organisation is only as strong as the defences it builds. We look at the five key elements when designing a robust insurance risk framework to aid resilience.

FAQs

From cities and states to utilities and transit organisations, public entities are exposed to many types of risks, including:

Cyberattacks: Ransomware attacks against public systems have become increasingly common in recent years. These incidents not only have the potential to shut down administrative functions, but can also leave residents without access to vital public services. Public entities should prioritise efforts to protect their digital assets and the private information of citizens.
Reputation management: How governments respond to and communicate with constituents on a day-to-day basis and in crisis situations is critical. Heightened visibility across all digital channels requires stringent public relations policies and proactive planning in the event of an incident.
Fleet management: Distracted and impaired driving, as well as a shortage of experienced drivers, are just some of the factors increasing the risk of accidents, claims, and related costs. Public entities should establish and maintain fleet management strategies that promote safety, minimise exposures, and reduce costs.

Public entities should consider all areas of risk to plan for and minimise the impact of existing and emerging vulnerabilities. A comprehensive approach to these threats helps you not only manage cost, but also enhances the safety of staff and the public.

As a result of increased litigation, aging infrastructure, and elevated public scrutiny, public entities require a unique approach to insurance to protect their people and property, which covers:

Management and professional liability: These policies protect public entities and staff against circumstances not covered under a traditional commercial policy. This can include losses caused by a wrongful act resulting in a loss while conducting duties by or on behalf of the group.
Auto liability: Fire trucks, ambulances, police cars, buses, road and street maintenance vehicles, and other emergency vehicles all require coverage in the event of bodily injury or property damage.
Cyber risk: The resulting fallout of a cyberattack can include severe consequences for a public entity, such as data leaks, extortion, and fraud. This form of coverage typically includes expenses related to these consequences, as well as those stemming from related network or information security failures.

For public entities, developing a comprehensive approach to risk management means addressing each of these vulnerabilities and any related to their unique constituents or the day-to-day function of their work.

At Marsh, our analytics, risk management, and local teams can help you develop fit-for-purpose risk financing and management strategies to continue to support the public while mitigating risk.

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Public Sector

For public entities, including those in the municipal, education, healthcare, and non-profit industries, risk management is a key element of governance.

The Global Risks Report

Featured insights

Top three risks for public services

Reframing insurance risk

Designing insurance risk frameworks

FAQs

What risk factors do public entities typically face?

What is public entity insurance and what does it cover?

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