Managing the Growing Risks of Political Campaigns Through Strategic Insurance Coverage

Managing the Growing Risks of Political Campaigns Through Strategic Insurance Coverage

According to an article in Risk Management Magazine, campaigns have become multi-million, or even billion-dollar enterprises marked by increasing complexity and exposure to risk. Spending in the 2024 election cycle is projected to exceed $16 billion, highlighting not only the escalating scale of campaign operations but also the growing need for structured risk management. 

From physical safety and cyber threats to reputational risks and employee-related claims, campaigns now face a wide spectrum of liabilities. As a result, securing tailored insurance coverage is more critical than ever to safeguard operations and ensure a campaign can survive unforeseen disruptions.

Historical examples underscore the consequences of underestimating these risks. In Gerald McCann’s 2013 mayoral campaign, a civil rights lawsuit prompted litigation over the scope of the campaign’s insurance coverage, culminating in a court ruling that required the insurer to defend and indemnify the campaign. 

Likewise, Hillary Clinton’s 2016 campaign faced national scrutiny following a cyberattack, while Tim Hagan’s team was entangled in a trademark dispute over a parody advertisement. These cases illustrate how legal, digital, and reputational risks can quickly escalate into significant liabilities.

The article suggests that campaigns adopt a business-like approach to strategic insurance coverage to mitigate such exposures. General liability, property, auto, cyber, and media liability insurance offer protection across a broad range of scenarios. More specialized policies, including event cancellation, employment practices liability, and directors and officers (D&O) insurance, further address campaign-specific risks.

Political campaigns must be treated as complex organizations requiring robust risk transfer strategies. Thoroughly reviewing policies, maintaining detailed documentation, and engaging insurance counsel can help campaigns respond effectively to emerging threats and maximize claim recovery when losses occur.