This article explores the impact of insurance companies on risk management for smaller police services in the United States.

Clearly the prevention of law suits is an important risk management system for any modern police service. However, I believe that risk management for police services cannot be “contracted out” to insurance companies – in isolation of other quality control systems – for two important reasons. First, insurance companies only track the financial impact of law suits – mistakes which do not cost a police service money due to law suits will not be identified through this mechanism. Some kinds of mistakes which result in a loss of public confidence or diminished effectiveness – but do not result i law suits – may not be identified and addressed through this process. Second, there is a concern that insurance companies – as powerful stakeholders and interested parties – could actually end up lobbying for less accountability for police misconduct in order to improve their bottom line. This would reduce litigation expenses, but could have a negative impact on the quality of police service as a form of legal oversight could be diminished.

Tracking litigation trends – and improving the quality of police administration to prevent mistakes which cause litigation – is an important tool for any police service. However, I believe police services need other risk management systems in place as well. Risk management systems which are motivated by professionalism and civic duty and not just the bottom line.