Basic Issues In Independent School Risk Management and Insurance

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Comprehension Risk. Characteristic in what schools doUnavoidable regardless of the amount of danger administration you utilize . Comprehension Risks. AcademicsArtsAthleticsCo-curricularEthics/CharacterSafety and Security. ServicesFinancialLegalPersonnelFundraisingCommunications. Schools are Risky Businesses.

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Basic Issues In Independent School Risk Management and Insurance CAIS Trustee/Head Conference, January 26, 2008 Presented by Bolton & Company—Ron Wanglin, CIC, Chairman of the Board and Cheryl McDowell, ARM, CSRM, CISR, Vice President, Education Practice Group

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Understanding Risk Inherent in what schools do Unavoidable no make a difference how much hazard administration you utilize

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Academics Arts Athletics Co-curricular Ethics/Character Safety and Security Services Financial Legal Personnel Fundraising Communications Understanding Risks

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Transportation Foreign Travel Athletics/P.E. Swimming Equestrian Gymnastics Camps Outdoor Education Survival Programs Counseling Playgrounds Dormitories Cafeterias Science labs Arts offices Technical shops (dramatization, carpentry, and so forth.) Security Schools are Risky Businesses

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Fire Flood Earthquake Hurricane Tornado Theft Auto crashes Trips/falls Death Dismemberment Apparent Risks

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Less Obvious Risks Independent Contractors Employee utilization of school gear or offices Leased Equipment Pollution

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Risk Management Responses Avoidance Prevention Reduction Transfer Assumption

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Risk Management Methods Insurance Education Safety Procedures Supervision Elimination of dangers Proper Maintenance Proper arranging of exercises Use master guidance as required VIGILANCE

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Risk Management and Leadership Begins at the Board Level Risk Management and Leadership "It is extremely unlikely a board can set up adequate approaches and methodology keeping in mind the end goal to dispose of all hazard and coming about claims. Be that as it may, a school can oversee hazard to keep suit to a base. The board's part is to guarantee that the fitting institutional and operational approaches, for example, faculty, understudy exercises and conduct, emergency administration, and budgetary administration—are set up and that the school is taking after those strategies and the subsequent methodology consistently in a predictable, reasonable way". "… ..the best insurance against a suit is a dynamic leading group of trustees that activities its administration part with awesome care." NAIS Trustee Handbook

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Risk Management and Leadership Begins at the Board Level (Cont.) Policies & Procedures Funding for staffing, support and repairs Annual detailing prerequisite on refresh of hazard administration programs

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The Independent School Board of Trustees Whereas, The Board of Trustees reaffirms that the improvement and execution of a fiasco readiness plan and calamity recuperation plan is fundamental to making the ideal condition to shield the understudies, families, personnel, staff and guests against ailment and damage, and Whereas, The Board of Trustees perceives the need to create s sound business continuation plan to react to fiascos and other disastrous occasions to secure the money related steadiness and security of the school over the long haul, Therefore Be It Resolved, That the Board of Trustees thus guides the school authority to create and actualize the above arrangements utilizing every single sensible mean and assets, both inside and outside, by January 1, 2007, and every single such arrangement will be checked on at the very least yearly to decide their fittingness to meet the present and future needs of the school.

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Risk Management and Leadership Continues with Administration Establishes Safety/Operational Risk Management Committees Provides Guidelines Models capable conduct Promotes wellbeing

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To protect or not? Trustee obligation requires board thought What risk points of confinement to pick Purchase cataclysmic property scope, for example, Earthquake, Wind or Flood? Buy Loss of Business Income & Extra Expense scope (loss of educational cost) Use of benchmarking

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When we choose to insure What are the issues, holes and pitfalls?

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United Educators Legal Liability Includes: - Trustee Liability Employment Practices Liability Professional Liability Sometimes Employee Benefit Liability

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Philadelphia Insurance Trustee Liability (D&O) Employment Practices Liability Other inclusions: - Fiduciary Liability - Workplace Violence Internet Liability

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Some different transporters Trustee Liability (D&O ) Employment Practices Liability Educators Legal Liability (Professional Liability)

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Excess over : General Employee Benefit Workers' comp Auto Employer's Educators Legal* Trustee* Employment Practices* Umbrella/Excess

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What does this mean? Comprehend the structure of your approaches to keep away from scope crevices You can't simply search at the most reduced cost. Realize what you are purchasing and settle on and educated informed choice !

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Sexual Abuse & Molestation Be careful! Frequently sub-restricted No Umbrella scope Includes Sexual Harassment? Know your scope territory!!!!

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Coverage Territory Domestic: U.S., Canada, their regions and belonging Foreign: Worldwide, aside from U.S., Canada, their domains and belonging

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Foreign Liability Often prohibits Sexual Abuse & Molestation May avoid Sexual Harassment Usually bars harm or property harm to "members": General Liability Auto Liability

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Foreign Liability Add back scope for Sexual Abuse and Molestation? Include prohibition for claims acquired the U.S.!!!

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Issues To Address for All Liability Policies Risk Measurement Does school have an introduction, and provided that this is true, how is it overseen? "Event" or "Cases Made" Form Limits of Liability Carried Exclusions Understand exposures of barred ranges

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Common Liability Exclusions Sexual Abuse & Molestation Athletic interest White water rafting Scuba jumping Equestrian Trampoline/bouncing back gadgets Corporal discipline Contact Sports camps

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Property Insurance Pitfalls Business Income/Extra Expense Maximum down time? Hold representatives proceed with finance? What do your workforce contracts say? To what extent to recapture your understudies? Educational cost discount approach? Rental Income Co-Insurance/Agreed Value Building Ordinance (Increased Cost of Construction and Demolition) Replacement cost

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Property Insurance Pitfalls Catastrophic hazards: Earthquake Sprinkler Leakage Wind (Hurricane, Tornado, and so forth.) Flood

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Fiduciary, Employee Benefit Liability & ERISA Bonds Pension Plans Defined Contribution Plans—403(b) or 401(k) HIPAA COBRA Group Health & Welfare Plans

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Fiduciary Liability Remember-Personal resources are at hazard!

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Employee Benefit Liability Errors and Omissions Coverage for the organization of the worker benefits arranges Cobra Medical Plan qualification

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ERISA Bonds The Employee Retirement Income Securities Act (ERISA) of 1974 requires that a Fidelity Bond be set up in the measure of 10% of the arrangement resources up to a most extreme of $500,000, if there is a business commitment to the 403(b) or 401(k).

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Claims Reporting Schools are touchy to negative reputation Often look for outside guidance first Policy may require revealing of any known occurrence that may offer ascent to a case Failure to report could invalidate scope

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Legal Environment Stay educated of what is going on and archive, record, report! Business related illustrations: Retaliation claims Workers Compensation related 132a wrongful end ADA/FEHA and other comparative laws

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Insurance Broker Selection Knows industry Knows how schools work Represents assortment of high-evaluated organizations Knowledgable staff taking care of all inclusions and fills in as cases go-between One agent or a few???

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Critical Issues In Independent School Insurance Bolton & Company Cheryl McDowell, ARM, CSRM, CISR Vice President, Education Practice Group Direct: 626-535-1428 Toll free: CA 800-439-9337 Out of State 888-700-1444