Your Entity is Part of a Risk-Sharing Pool — Here’s What That Really Means

As an elected official or local government employee, you work every day to serve your community — whether it’s keeping roads safe, responding to emergencies or managing city services. And behind the scenes, you’re supported by something a little less visible, but just as important — your membership in a public risk-sharing pool.

At Public Entity Partners, we’re proud to serve nearly 500 Tennessee cities, towns and agencies — including yours. But what exactly is a public risk-sharing pool, and how does it help you do your job more confidently?

What Is a Public Risk-Sharing Pool?

A public risk-sharing pool is a group of local government entities that come together to share the cost of risk. Instead of buying coverage from a traditional, for-profit insurance company, participating public entities contribute to a collective fund that covers losses while providing risk management services.

Public Entity Partners (PEP) is a risk management pool that offers far more than insurance. We provide a comprehensive risk management program designed to help public entities mitigate their risks.  Insurance provided by for-profit companies only focus on financial recovery, with little regard to preventing losses. The risk management program offered by PEP provides financial recovery and, more importantly, focuses on loss prevention. When a public entity prevents losses, it saves lives, reduces liability exposures, protects property, and saves the citizens and taxpayers from costly claims.

Because we’re not-for-profit, our priorities are different:

• Unlike commercial insurers, our focus is on helping you protect your people, the public and your property, rather than making a profit for shareholders.
• We reinvest in you — through training, grants, scholarships and dividends.
• We offer coverage designed specifically for the public sector — because what you do isn’t like private business.

How Our Partnership Benefits You

Being part of a pool might sound like an administrative detail, but it has a real impact on your work — and the communities you serve.

Here’s how:

• Local government insurance market.  Public risk pools were created in the 1970s and 1980s because commercial insurers abandoned the local government insurance market, and local governments had few coverage options. However, for 45 years, PEP has provided a stable local government insurance marketplace by providing insurance coverage to local governments and governmental agencies.
• Fewer surprises. As a nonprofit, we prioritize rate stability so your entities can plan and budget more effectively.
• Specialized coverage. From police liability to storm water management, we understand the unique exposures that come with public service — and we’re built to cover them.
• Resources to reduce risk. We offer training, risk assessments, scholarships and safety grants designed to help prevent claims — keeping your team safer on the job.
• Local Representation. Unlike commercial insurers, PEP’s Board of Directors is composed of pool participants who contribute their time to serve local governments across the state of Tennessee, which provides pool participants with a significant voice in pool governance. Equally important, as of 2025, PEP insureds will have the opportunity to vote to confirm board members at our Insured Organization Meeting, which takes place at our annual Risk & Insurance Symposium.
• Dividends that go back to your organization. Since 1997, we’ve returned more than $141 million to members — including your city or agency. (This figure does not include the additional $7 million we returned to members in 2020 during the COVID-19 crisis.) 

Why It Matters

You probably don’t think about insurance every day — and that’s a good thing. But knowing that you’re backed by a partner that understands local government, advocates for your interests and reinvests in your success can give you peace of mind.

At Public Entity Partners, we see ourselves as more than just an insurance provider. We’re your risk management partner and advocate, and a resource you can count on — whether you’re working behind a desk, on the road or in the field.

Thanks for the work you do. We’re proud to stand with you.