How Private Insurers Regulate Public Police

Policing is on a lot of minds these days. Liability insurance is probably not. But insurance bears on policing far more than one might think. Municipalities nationwide purchase insurance to indemnify themselves against liability for the acts of their law enforcement officers. The policies are broad, often covering punitive damages and intentional acts like assault and battery and discrimination. This arrangement creates a potentially serious moral hazard problem, but it also positions insurers, in the name of “loss prevention,” to act as “private regulators” of police activity. In my latest article, “How Private Insurers Regulate Public Police,” I present original … Read more