Liability of Municipal Councillors

Protection for elected representatives of cities and municipalities

Courage to make decisions with a clear head

The role of mayor or councilor carries immense personal responsibility. Even with the best intentions, your decisions can be challenged as disadvantageous to the municipality, whether by the opposition or oversight bodies. Representatives' liability insurance protects your private assets from ruinous claims for damages.

Risks for Mayors and Representatives

Breach of Duty in Asset Management

Accusations of disadvantageous sale or lease of municipal property, leading to compensation for damages from personal funds.

Errors in Public Procurement

Procedural errors in tender procedures, which can result in fines from the Office for the Protection of Competition (ÚOHS) and personal penalties.

Unlawful Decisions

Damages caused to third parties by issuing a decision that was subsequently annulled due to illegality.

Costs of Legal Defense

High legal expenses in criminal or civil proceedings, even if innocence is ultimately proven.

Coverage for Public Officials

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Coverage for Erroneous Decisions

The insurance covers financial damages caused to the municipality or third parties due to a breach of legal duties in the performance of public office. Typically, this includes errors in the sale or lease of municipal property, public procurement, or the handling of subsidies.

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Legal Protection and Defense

Criminal complaints against municipal officials are a common consequence of political disputes. Even if your innocence is proven, the costs of quality legal defense can run into the hundreds of thousands. Our insurance covers these costs (including the costs to clear your name) so you don't have to fund your defense from family savings.