As part of ProgramBusiness.com’s ongoing “Top Trending Insurance Markets” series, this month’s spotlight turns to one of the most consistently searched and competitively placed segments on the platform: public entity insurance markets. With search data showing steady traffic for programs covering municipalities, school districts, and special service districts, brokers are clearly seeking tailored public entity insurance solutions for their clients. The continued surge in public-sector exposures, combined with increased infrastructure funding and litigation risks, has made this a market in constant evolution — and one worth watching closely.
Related article: Top 5 Trending Insurance Markets of October 2025, Part 5: Product Recall Insurance
What Is Public Entity Insurance? An Overview
Public entity insurance provides specialized coverage for government and quasi-government organizations — from cities, towns, and school districts to utilities, law enforcement agencies, and transit systems. These entities operate under high public scrutiny, often managing large-scale risks that private businesses rarely encounter.
Because no two public entities are alike, these policies are designed to address a complex range of exposures, including:
- Liability: General, public officials, and employment practices liabilities for actions taken by employees and leadership
- Property: Coverage for public buildings, schools, or utilities exposed to natural disasters and vandalism
- Automobile: Fleet coverage for police, public works, and transportation departments
- Cyber and data breaches: Protection against the growing threat of ransomware and data theft targeting municipalities
Each program integrates risk control, claims management, and coverage extensions to reflect the heightened accountability and budgetary constraints that public entities face.
Market Trends Driving Demand for Public Entity Insurance in 2025
Several factors are shaping public entity insurance markets in 2025, prompting agents and managing general agents (MGAs) to reevaluate their coverage options and partnerships. Together, these forces underscore why public entity programs remain highly active and frequently searched on ProgramBusiness.com.
Infrastructure Investment and Expansion
The continued rollout of infrastructure funding at the federal, state, and local levels has led to increased project activity across municipalities. With new construction, equipment purchases, and public-private partnerships, insurance needs are expanding accordingly.
Rising Claim Severity and Litigation Pressure
Carriers are adjusting pricing and reinsurance strategies to manage the volatility of nuclear verdicts (jury awards over $10 million) and “mega” nuclear verdicts (those over $100 million).
Such cases have become more common across both public and private sectors. In one case, a jury awarded $17.4 million to a City of Los Angeles wastewater collection supervisor. In another, Jane Doe v. County of Los Angeles, a jury issued a $61 million wrongful death verdict, with $59.7 million attributed to non-economic damages.
Cyber Risk Escalation
Local governments remain a top target for cyberattacks, with ransomware incidents disrupting essential services. Many programs now include cyber liability or incident response resources as standard elements of coverage.
Climate and Environmental Exposures
Severe storms, flooding, and wildfires are testing the resilience of municipal property portfolios. According to a recent Carnegie Endowment analysis, the burden of responding to climate-related disasters increasingly falls on local governments. These entities already shoulder the majority of the nation’s infrastructure spending and essential public services — from waste management and policing to education and emergency response.
As extreme weather events grow in frequency and cost, local governments face rising financial exposure — not only from physical damage but also from prolonged service disruptions and liability claims tied to public safety or environmental contamination. This mounting pressure is pushing municipalities to seek comprehensive insurance programs that integrate catastrophe, pollution, and business interruption coverage within broader public entity risk strategies.
Evolving Risk-Pooling Models
Some municipalities continue to use shared risk pools or captives. Others seek standalone coverage with specialized MGAs for greater flexibility and service responsiveness.
What To Look For in Public Entity Insurance Programs
For brokers and agents, selecting the right public entity program requires balancing comprehensive protection with expert underwriting and claims support. Leading programs tend to share the following characteristics:
- Specialized underwriting expertise: A dedicated public risk team familiar with municipal exposures, including law enforcement and employment practices
- Flexible deductibles and limits: Scalable options that accommodate varying population sizes and budgets
- Expanded liability coverage: Extensions for law enforcement, emergency dispatchers, and public officials’ liability
- Risk-management support: Ongoing education, safety resources, and incident-prevention guidance
- Responsive claims service: Fast, knowledgeable claims handling for politically sensitive or high-profile losses
Top Public Entity Insurance Programs To Consider
For program managers and MGAs specializing in municipal or governmental risks, now is a prime time to gain visibility on ProgramBusiness before the market becomes more saturated. Below are two standout public entity insurance programs currently featured on the platform. Each offers specialized coverage and underwriting expertise designed to meet the complex needs of local governments and public organizations.
RPS Signature Programs: Large Public Entity (Above 75,000 Population)
With more than 40 years of experience, RPS Signature Programs has developed exclusive facilities with A-rated carriers to serve municipalities, schools, and state entities. Their Large Public Entity program addresses a wide range of exposures, including civil rights claims, police misconduct, employment practices, terrorism, and cyber threats.
The program offers:
- Property, general liability, auto liability, physical damage, and public officials liability
- Primary and excess liability up to $10 million in total limits
- Fast in-house underwriting turnaround to support new business and renewals
RPS’s team emphasizes customized risk-management resources, providing clients with education on emerging threats such as ransomware, workplace violence, and environmental hazards. Their long-standing relationships with top carriers help maintain competitive pricing for large municipalities with populations over 75,000.
Program listing: RPS Signature Programs: Large Public Entity (Above 75,000 Population)
Wright Specialty Insurance: Municipalities Insurance Program
Wright Specialty Insurance provides nationwide property and casualty packages tailored for city and county governments, emergency response services, police departments, and a range of public service districts.
Available coverages include:
- Property, inland marine, general liability, crime, auto, and umbrella
- Professional liability options, such as law enforcement, employment practices, and emergency dispatchers liability
- Support for a wide range of entities, from fire protection districts to park boards and utility services
With underwriting flexibility and national availability (excluding Alaska, Hawaii, New York, and Oregon), Wright Specialty’s Municipalities Program delivers broad coverage options suited to both large and mid-sized jurisdictions.
Program listing: Wright Specialty Insurance: Municipalities Insurance Program
Searching for Public Entity Insurance Solutions?
As municipal exposures grow more complex, brokers are turning to marketplaces that make it easier to connect with trusted program partners. Public entity programs on ProgramBusiness.com offer access to experienced MGAs and carriers that understand the intricacies of public risk — from managing law enforcement claims to addressing cyber resilience and environmental compliance.
Agents can explore current public entity insurance solutions, while program managers can create a storefront to increase program visibility on the platform. Contact ProgramBusiness today to learn how you can expand your market distribution and tap into our network of over 80,000 agents looking for new business.
FAQ About Public Entity Risk Insurance Programs
What is covered under public entity insurance?
Coverage may include property, general liability, auto liability, law enforcement, public officials, employment practices, and cyber risk, depending on the entity’s operations.
Who needs public entity insurance?
Cities, towns, school districts, utilities, and other public service entities need coverage to manage risk from lawsuits, property damage, and operational disruptions.
What are examples of public entities?
Examples include county governments, fire and police departments, water and sewer districts, and community development boards.
How do public entities manage risk?
Most rely on specialized insurance programs or risk pools that provide both coverage and loss-control support, helping reduce claims through training and proactive prevention.
What are the challenges in insuring public entities?
Challenges include managing high-severity claims, political and reputational risks, limited budgets, and increasing exposure to cyber and environmental threats.
About Program Business
ProgramBusiness is a leading insuretech marketplace connecting agents, brokers, MGAs, and carriers. We enable insurance professionals to list their programs, receive verified feedback from users, and be discovered by buyers across the industry.
Jeff Neilson
Co-founder of Neilson Marketing Services and ProgramBusiness.com, Jeff has 30 years of experience in the insurance industry putting his expertise to work for P/C agencies, MGAs/MGUs, wholesalers, E&S brokers, and program administrators nationwide.