FAQ

Since PEP began, there have been many questions regarding the operations of insurance pooling versus traditional insurance. The following are some of the questions we typically encounter:

Q. What is a pool?

A. A Pool is a cooperative arrangement with several similarities to traditional insurance. In the case of PEP, participating public entities pay a premium, receive coverage and make claims. In addition, these Members rely on the PEP Pool for assistance with overall risk management and loss control.

Q. Why did PEP begin?

A. PEP began because so many Ohio Public Entities were unhappy with their insurance programs and sought alternative methods of insuring their exposures. (Traditional insurers were single purposed and extremely inflexible.)

Q. How could PEP provide specialty coverages to Ohio Public Entities when traditional insurers would not?

A. Because of the structure of PEP, the Membership is insulated from the factors that have historically caused the extreme variances in insurance company pricing and coverage availability. PEP provides coverage for only one class or risk - Public Entities, and in one geographical area - Ohio. This translates into more predictable claims payment patterns and therefore the ability of PEP to provide stable pricing and broad coverage.

Q. What type of coverages does this pool offer?

A. PEP offers commercial general liability (including athletic participation, day-care, pre-school, sexual abuse, special events, etc.) police professional, public officials liability (errors and omissions), commercial automobile, property and inland marine.

Q. Is there a firm that independently analyzes PEP and other intergovernmental pools' financial stability?