With the dust still settling from the most expensive political campaigns in history, many politicians are already eyeing re-election bids, while newcomers are gearing up to enter the race for the first time in the midterms or beyond.
In a landscape where presidential and congressional candidates spent nearly $14 billion during the 2020 election cycle, and projections for 2024 suggest total spending exceeded $16 billion, modern political campaigns and their operations are more complex—and risky—than ever before. From campaign staff facing the potential for bodily injury on the trail to cybercriminals targeting sensitive donor information, the range of exposures is constantly growing. It is crucial for campaigns to secure the right insurance coverage to mitigate these evolving risks.
This post explores the key types of insurance coverage political campaigns should consider, as well as strategies to ensure maximum recovery should a loss occur.
Insurance Coverage Options
- General liability (GL) insurance protects the campaign against third-party claims and lawsuits. For example, if a campaign staffer, volunteer, or attendee is injured at an event and seeks compensation for their injuries, GL insurance can help cover those costs. Additionally, some GL policies include liquor liability coverage, which protects the campaign during fundraising or other events where alcohol is served.
- Property insurance safeguards the physical assets used by a campaign, including office buildings and their contents, such as furniture. It also covers computers, technological equipment, and campaign materials like posters and signs. Additionally, property insurance protects a campaign’s financial and accounting records.
- Commercial auto insurance covers accidents involving a campaign-owned vehicle, including bodily injury and medical expenses for the driver, as well as property damage to the vehicle.
- Non-owned and hired auto insurance protects against damages to vehicles used for campaign operations but not owned by the campaign, such as rented, leased, or staff-owned vehicles.
- Crime / employee theft insurance covers losses from fraud, embezzlement, robbery, forgery, and other dishonest acts by campaign employees, including expenses associated with a data breach or computer fraud.
- Directors and officers (D&O) insurance provides financial protection for campaign directors, officers, managers, and other employees against lawsuits related to alleged mismanagement or errors in campaign operations.
- Media liability insurance protects the campaign from defamation, plagiarism, or copyright infringement claims resulting ads or public statements by campaign spokespeople.
- Cyber insurance covers costs related to cyber attacks and data breaches. This type of coverage is essential for campaigns storing sensitive donor information. Some cyber policies provide limited media liability coverage as well.
- Employment practices liability (EPL) insurance covers legal costs, settlements, and judgments for claims related to actual or alleged employee rights violations such discrimination, wrongful termination, and harassment.
- Workers’ compensation coverage is required for campaigns with paid employees, and covers claims related to workplace injuries.
- Event cancellation insurance protects against costs incurred if a campaign is canceled, postponed, or relocated for reasons beyond the campaign’s control.
- Special events insurance covers specific campaigns events like rallies and conventions.
- Bundled insurance packages combine multiple coverages to address key risks associated with modern political campaigns, streamlining protection for a variety of potential exposures.
Steps to Secure Coverage
If a loss occurs, campaign managers must be aware that they may need to file a claim to recover losses and additional costs. To secure coverage, campaigns are well-advised to:
- Review all relevant insurance policies to identify applicable coverages;
- Notify insurers of the potential insurance claim as soon as possible; and
- Maintain thorough, up-to-date records—including accounting records, contemporaneous photos, and videos—detailing damages, costs, and losses, along with any extra expenses.
Takeaways
How insurance responds to the evolving risks of modern political campaigns depends on the structure of the campaign’s insurance program and the specific terms, conditions, and exclusions in each policy. It is imperative for campaigns to carefully review all policy terms—both at the time of purchase and when filing a claim. To ensure comprehensive protection and maximize recovery potential, campaigns should consider consulting with insurance coverage counsel for expert guidance.