Municipal insurance protects local governments from financial losses due to property damage, liability claims, and other risks. Key coverage types include: general liability (claims from injuries or property damage), professional liability (errors and omissions by staff), property insurance (municipal buildings, equipment, vehicles), cyber liability (data breaches, ransomware), environmental liability (pollution events), and directors and officers insurance (protecting elected officials and senior staff from personal liability). Municipalities also carry workers' compensation coverage for employee injuries. Insurance costs are significant budget items, and premiums have risen substantially in recent years. Some municipalities participate in insurance pools or reciprocals that spread risk across multiple organizations. Risk management practices—safety programs, good maintenance, proper procedures—help control insurance costs. Climate change is affecting municipal insurance as extreme weather events increase property claims and some coverage becomes more expensive or unavailable.