November 1, 2015 Michael Labadorf, CPCU Executive Vice President 516-880-9250 [email protected].

JCamp 180 AnnualConference 2015

November 1, 2015

Michael Labadorf, CPCUExecutive Vice President

[email protected]

I. Words of Wisdom for the Camp Insurance Buyer

II. Certificates of Insurance

III. Camp Claims & Lessons Learned

Topics

Words of Wisdom for the Camp

Insurance Buyer

What does it cover? Most often includes employment practices liability (EPL).

Vast majority of nonprofit claims are EPL, not D&O Most D&O/EPL policies share one limit of liability so EPL

claims erode what’s left for the D&O’s. Options are split the limits, increase the limits, or buy separate side A D&O coverage.

D&O/EPL coverage ‘goodies’: ◦ Defense costs in addition to limits◦ No hammer clause or most favorable allocation◦ Wage & hour defense◦ Punitive damages with most favorable venue clause◦ Qui tam coverage◦ Third party EPL

Director’s & Officer’s Liability

Flood versus Water Damage. Hurricane Sandy, Massapequa, NY 8/12/14 – 13.6” of rain, October ‘15 S.C. flood disaster

Building Ordinance A, B, C Property in the open Video all major buildings (dining hall loss). Take digital

photos of all memorabilia

Property Insurance

Off premises service interruption Business Income due to food contamination &

communicable disease Property of campers & staff Be circumspect scheduling inland marine items. Many

items are automatically covered under personal property coverage. Insure to true replacement cost – boats especially

Cash – spike periods, cover cash left in camp safe, keeping records to justify loss

Property Insurance

Employee Benefit Liability and Fiduciary Liability Leased office space – mutual waiver of subrogation for

insured losses, fire damage legal liability Pollution. Don’t focus only on known fuel tanks Employment Practices Liability Cyber Liability Transmittable Pathogens Foreign liability, auto, and workers comp Suspend auto liability & collision for vehicles laid up during

the off season Have strong venue clause in camper contracts Not all sex abuse forms are equal. Beware the perpetrator

form or forms that limit coverage only while victim is abused at camp

Liability Insurance

Camper Accident Medical & Sickness Report every incident that could give rise to a claim Fidelity ‘social engineering’ coverage Workers Compensation experience modification, and split

point changes. Prior to 10/01/13, losses were capped at $5,000. Now: ◦ As of 10/1/13 - $10K of every claim goes into the formula◦ As of 10/1/14 - $13.5K of every claim goes into the

formula◦ As of 10/1/15 - $15K of every claim goes into the formulaReview unit stat cards, experience mod worksheets, and

your loss runs. Review and learn from every claim, push return to work policy

Miscellaneous Insurance Issues

Certificates of Insurance

Critical, critical, critical! Many big & nasty claims can easily be avoided or mitigated by evidence of proper insurance

When to ask for one; when to give one

Read it carefully. The devil is in the details

Certificates of Insurance

Additional insured on a primary, non contributory basis

Contractors – no injury to employee or 3rd party action over exclusion

Written contracts with strong indemnity in your favor and extensive insurance clause are a must

Certificates of Insurance

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Camp Claims & Lessons Learned

Counselors on time off injured at camp. Is it a liability or workers comp claim? Lines are blurred and laws vary by state. Where possible, keep WC and Liability with same insurer. No room for denial and much quicker, coordinated and less expensive claim.

Don’t focus solely on campers and counselors. Workers compensation claims from maintenance and year round staff are a growing, serious, and expensive problem. Nationally, workers compensation is the worst performing line of insurance. Have separate orientation for these staffers and enforce safety protocols and review every accident with the goal of non recurrence.

Camp Claims & Lessons Learned

Michael [email protected]