Tax Interruption

Overview of the Program from AI Risk:

AI Risk offers a specialized Tax Interruption insurance program designed specifically for small municipalities. This program provides essential protection against the loss of tax revenue—whether from sales or property taxes—following direct physical damage to scheduled premises. Tailored for public sector entities, it helps ensure financial stability in the aftermath of disasters or unexpected property losses that impact tax generation.

Ideal Accounts and Appetite:

This program is a strong fit for municipalities with populations of 50,000 or less. If you work with small cities, towns, or local government entities that rely heavily on tax revenue from specific physical locations (such as business districts or shopping centers), this program can help protect their financial continuity. Common examples include:

A rural town that depends on property taxes from a commercial corridor damaged by a natural disaster
A small city with a central retail zone that generates a significant portion of its sales tax revenue

Coverage Highlights and Advantages:

The Tax Interruption program provides coverage for lost tax revenue (sales and/or property) due to direct physical loss or damage to scheduled premises. This type of interruption can significantly impact municipal budgets and services. By offering this coverage, you can help your public sector clients bridge the financial gap while recovery and rebuilding take place.

Key coverage features include:

Protection for lost tax income resulting from covered physical damage
Applicable to both sales and property tax revenue streams
Backed by AIG, a leading global carrier

Underwriting Notes and Minimum Premiums:

The minimum premium for the Tax Interruption policy is $5,000. As a Managing General Agency (MGA) and Carrier, AI Risk offers underwriting expertise for niche public sector exposures. Accounts should include clearly scheduled premises and documented tax revenue dependencies.

Territories and Availability:

This program is available on an admitted basis in all 50 states and Washington, D.C. Whether your clients are in the Southeast, Midwest, or West Coast, you can access this coverage for qualifying municipal accounts.

Why Work With AI Risk:

AI Risk combines the underwriting capabilities of a Managing General Agency with direct carrier access through AIG. Their focused expertise in public sector risk makes them a reliable partner for agents and brokers placing municipal accounts. From responsive underwriting to tailored solutions, AI Risk is positioned to help you serve your public entity clients with confidence.

To learn more about AI Risk and their other specialized offerings, visit their company profile on CompleteMarkets.

Frequently Asked Questions

What types of accounts are a good fit for this program?

This program is ideal for municipalities with populations of 50,000 or fewer that rely on property or sales tax revenue from specific physical locations.

What does the Tax Interruption policy cover?

The policy covers loss of tax revenue (sales and/or property) resulting from direct physical loss or damage to scheduled premises.

Is this program available in all states?

Yes, the Tax Interruption program is available on an admitted basis in all 50 states and Washington, D.C.

What is the minimum premium for this coverage?

The minimum premium for this program is $5,000.

Who underwrites this program?

This program is underwritten by AI Risk in partnership with AIG.

Need help placing an account? Connect with a market specialist.

U.S. States Available

U.S. States Available:

Provider Type:

Managing General Agency and Carrier

Admitted:

All Available States

Carriers:

Carrier Ratings:

A.M. Best A XI rated

Commission:

Varies

Min Premium:

-

Coverages:

Tax Interruption Insurance

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