Public Officials and Employment Practices Liability Insurance

1. Public OfficialsandEmployment PracticesLiability Insurance Arthur J. Gallagher & Co. – Dallas and State Office of Risk Management P.O. Box 13777 300 W. 15th St, 6th Floor Austin, TX 78701 (512) 936-1573 (512) 370-9037 fax Presented By:

2. Overview • Who Needs This Coverage • The Risks • The Coverage • Why You Should Purchase This Coverage Through The State Office Of Risk Management • How To Obtain A Quote • Contact Information

3. Who Needs this Coverage • State agencies, authorities, commissions and special boards • Persons who were, are or shall be lawfully appointed or elected officials of a state agency • Members of commissions, boards or other units operating by or under the jurisdiction of a state agency • Employees of a state agency, particularly employees responsible for employment decisions

4. The Risks • Mismanagement or improper administration of funds, grants or budgets • Improper zoning approvals or denials • Denial of permits and First Amendment Constitutional claims. • Violation of employment law, discriminatory employment practices, sexual harassment, or failure to hire, promote or train employees • Professional acts of employed accountants or attorneys can be added by endorsement

5. The Coverage • Covers claims brought against the entity, its employees and volunteers for alleged or actual breach of duty, neglect, error, misstatement, omission or Employment Practices Violation • Defense costs paid in addition to the limits of liability for persons not entitled to defense from the Office of the Attorney General • Covers claims alleging errors or omissions covered by the policy even if the allegations are proven groundless • Covers insured’s board service for outside entities if acting on behalf of a state agency • Eleven defined Employment Practices Violation coverages, including retaliation • Full Prior Acts coverage is available • Covers original claims made by insureds against other insureds

6. Why Should You Purchase This Coverage Through The State Office Of Risk Management • A 10% discount is given across the board on premiums due to a group purchasing plan • Coverage is purchased through AIG with A.M. Best rating of A+XV and sound financial strength being the largest Insurance Company in the World • Risk Management Services provided by both the State Office of Risk Management and Arthur J. Gallagher & Co. • Defense is provided by the Office of the Attorney General • Renewal reminders provided by the State Office of Risk Management

7. How To Obtain A Quote • Complete the attached AIG MuniPro application. • Provide a copy of Annual Financial Report. • Provide a copy of Employee Handbook. • Provide loss information for the past 5 years. • Submit all above items to Sally Becker at the State Office of Risk Management for a quote.

8. Contact Information Sally Becker Risk Management Specialist State Office of Risk Management P.O. Box 13777 300 W. 15th St, 6th Floor Austin, TX 78701 (512) 936-1573 (512) 370-9037 fax E-mail: Sally.Becker@sorm.state.tx.us