When a Tribe thinks about risk management and insurance, it may first wonder whether it really needs to worry about it because of its unique defense of sovereign immunity. This defense, however, has come under much fire in recent years and is slowly being eroded. Many tribes have also become “deep pockets” that are the target of many plaintiffs’ counsel. So, even though Tribes might have sovereign immunity against many third-party claims, they are certainly not immune to loss.
More significantly, loss for any organization, including a tribal government or tribal economic development entity, can take many forms—from financial to operational to reputational. For Tribes involved in hospitality industries, reputational risk might be even more critical. While purchasing insurance…
