As the calendar year comes to a close, insurance agents working with fire departments and rescue squads have a crucial opportunity: guiding their clients through a comprehensive liability audit. While these departments focus on protecting communities, their evolving operations may leave them exposed to risks not adequately reflected in their current policies. A year-end review is a proactive way to confirm firefighters insurance remains aligned with the realities on the ground.

Fire departments experience significant changes throughout the year, from acquiring new vehicles and equipment to expanding outreach efforts. Each adjustment can create insurance blind spots. As we head into a new policy year, now is the time for agents to assess those changes and update coverage accordingly.

Why Do Fire Departments Need a Year-End Insurance Review?

Operational changes may go unreported but can shift liability exposure. Has the department added a new apparatus or expanded its call volume? Did it participate in more public events or community education programs? Even minor shifts can open the door to coverage gaps.

For example, adding a new rescue vehicle without adjusting the commercial auto schedule could leave the vehicle uninsured in a claim scenario. Similarly, an uptick in community engagement without adequate liability protection could expose the department to reputational risks or personnel issues.

Insurance agents should encourage clients to document the year’s changes, so the policies reflect the true scope of operations and risk.

What Should a Liability Audit Include?

A liability audit should serve as both a review and a checklist. Agents can use this time to walk through the following areas with their fire department clients:

• General liability coverage limits: Confirm that the limits reflect current operations, the population served, and the risk exposure.
• New vehicles and equipment: Verify recent purchases are listed and valued accurately.
• Volunteer and member rosters: Update for turnover or new roles to avoid disputes at claim time.
• Mutual aid and vendor contracts: Review any third-party agreements to identify indemnification or insurance responsibilities.
• Policy exclusions and endorsements: Volunteer departments especially should check for outdated endorsements or exclusions that no longer apply.

For colder climates, this audit should also include a review of property-related risks. Encourage clients to consider seasonal readiness by guiding them through winter risk-management solutions.

Overlooked Risk Areas That Could Lead to Claims

Beyond obvious exposures, there are liability areas often overlooked:

• Community events: Participating in parades, fundraisers, or public safety demonstrations introduces new public interaction risks.
• Online presence: Departments that are active on social media or publish training videos may need management liability or cyber coverage.
• Internal disputes: Leadership disputes, hiring decisions, or volunteer complaints could trigger claims if not covered under management liability.

Agents should evaluate whether an excess liability or management liability policy is warranted to provide broader protection. These coverages can fill the gaps when claims exceed general liability limits or when claims don’t fall neatly into traditional categories.

Protecting What Matters Most

Insurance agents play a vital role in helping fire departments stay mission-ready and financially secure. A year-end audit isn’t just a paperwork task — it’s a strategic review that supports safer operations and smoother claims outcomes.

Help your clients move into the new year with confidence. Explore how Provident’s coverage solutions help safeguard your clients year-round.

FAQ About Year-End Insurance Reviews

What insurance coverages should fire departments review at the end of the year?

They should evaluate general liability, commercial auto, property, management liability, and excess liability. Also, update any schedules for vehicles, apparatus, and volunteers.

How often should departments conduct liability audits?

Annually is ideal, preferably in Q4, before policy renewal. Significant operational changes should also trigger mid-year reviews.

Are volunteer departments at higher risk for liability gaps?

Yes. Volunteer departments often have dynamic personnel and may rely on outdated policy structures. Tailored audits can reveal critical gaps.

Should winter preparation be part of a liability review?

Absolutely. Fire departments can borrow winter safety tips used by homeowners and businesses — such as inspecting furnaces, cleaning chimneys, and testing smoke and CO alarms — to reduce winter-related property risks.

About Provident FirePlus

Founded in 1902, our rich history involves the creation of custom firefighter insurance benefits in 1928. Today, Provident FirePlus continues to be a pioneer in developing insurance programs for firefighters, EMS providers, municipal entities, and law enforcement. In addition, we provide Special Risks insurance for various volunteer and nonprofit groups. Give us a call today at (412) 963-1200 to speak with one of our representatives.