Presentation on theme: "DISASTER PLANNING AND INSURANCE DISCUSSION April 18, 2012 Presenter: Michael J. Brooks Executive Vice President Austin & Co., Inc. Host: Leonard Silverman."— Presentation transcript:
DISASTER PLANNING AND INSURANCE DISCUSSION April 18, 2012 Presenter: Michael J. Brooks Executive Vice President Austin & Co., Inc. Host: Leonard Silverman Executive Director Congregation Kehilath Jeshurun In Coordination with Yehuda Friedman Associate Director Department of Community Engagement, Orthodox Union
Top 2% of insurance firms nationwide, in terms of volume Niche focus- 250+ not for profit customers, often anchored by school’s 100+ Insurance carrier relationships Servicing customers from Montreal to Long Island to Buffalo since 1853 Employee owned, boutique firm
Risk to owned assets from property damage (Fire, Theft, etc.) Risk from liability-Being held legally liable for: ─Damaging the property of others ─Bodily injury to others ─Personal injury to others Keep in mind- PERSONAL liability potential for congregation members, volunteers, trustees, and employees RISK, AS WE DEFINE IT
Our Discussion- Ways to address Risk RISK TRANSFER (INSURANCE, CONTRACTUAL) PREPARE, REACT, RESPOND
House of Worship Risk Considerations: Why insurance underwriters “lose faith” Property Risks Building Age Antiquated Fire Protection Fine Arts Specialized Valuations Deferred Maintenance Unoccupied Bldgs. Cooking/ Social Events Historic Buildings Business Income Replacement Bldgs. Liability Risks Programming for Seniors and Community Slip/Fall Counseling Risks Schools Sexual Misconduct Transportation and Travel Athletics/Teams
Solid balance of insurance coverages, reaction agility, and recovery strategies Minimized pain (financial and otherwise) compared to similar size tragedies Congregation Kehilath Jeshurun- A tragedy done right?
Intensive, ongoing review of insurance program Board involvement, multi-departmental representation Solid administration of insurance documentation, appraisals, etc. Sound emergency response planning Informed, deliberate decision making about risk vs. cost of insurance Vendor relationships Congregation Kehilath Jeshurun- A tragedy well handled?
DISASTER PLANNING- NOT WHAT YOU THINK Comprehensive, all encompassing plan= 100’s of pages, $10’s of thousands in cost Requires a consultant Few outside of Fortune 500 have one Fog of War example Too many variables for detailed, granular plan More realistic- a RESPONSE plan (24, 48 hours), and a general road map after that
DISASTER PLANNING- WHAT I WOULD BE DOING- QUICK HITS! Big impact- Modest investment in time/admin Focus on what you can control, not the variables beyond your sphere of influence Adaptability/Agility One page of notes, a few hours of prep time =‘s MAJOR improvement in response
DISASTER PLANNING- WHAT I WOULD BE DOING- QUICK HITS! 1)Insurance- See separate discussion 2)Pre-Arrange/Pre-Screen Vendors: GC, Cleanup/Resto Company, Real Estate, Transportation, PR Firm, Architect, and…Public Adjuster 3)Building/Re-Building/Moving- Ask your board to consider now- what can they imagine doing? 4)Partners/Rivals/Other HOW’s- Handshake or more formal agreements for space. Long term and emergency.
DISASTER PLANNING- WHAT I WOULD BE DOING- QUICK HITS! (CONT.) 5)Communication- Social Media, a Youtube script and video, email contact of congregation and stakeholders, phone strategy, ops center, meeting space 6)Tech- Off Site Redundancy. Not just data back up, but can you operate while your building is burning? Need a vendor to assist? 7)Local 1 st Responders- Coffee is priceless
INSURANCE CHECKLIST- DOESN’T EVERYONE ENJOY THIS STUFF? SPECIALIZATION- Vendor selection is critical- Generalist? Commercial? CARRIER CHOICES- Litmus test- “A” or higher, NYS Insurance Dept “Admitted”, Lender requirements VALUATION- Appraisals- (RC vs FRC vs ACV), Historical/Landmarked FINE ARTS- Torah’s? Art work? Stained Glass, etc ORDINANCE AND LAW COVERAGE- New code compliance, consultant opinion? DEDUCTIBLE CHOICES- Annual discussion- Risk Tolerance? Buy Back Period? LIABILITY INSURANCE- Other variables, separate discussion
BUSINESS INTERRUPTION INSURANCE: OUR INDUSTRY AT ITS WORST… What is it?- Extra Expense, Loss of Operating/Net Profit How Can I Collect?- Must be triggered by a property claim first. How Much Should I Buy- Hardest insurance decision to make, bar none. Anchored by an educated guess, and endless variables Format?- A maze of “Actual Loss Sustained”, “Coinsurnace” 1/6 Monthly, Contingent, Dependent, etc Payroll Plan- Do you really intend to keep your Employees on the payroll while you rebuild? Can you replace them if you don’t? Different answer for different divisions- ie, schools.
PARTING SHOTS… Your agent/advisor choice is the most important choice that you make There is a limit to how much you can plan for specifically, but it is worth the energy to prepare generally Enterprise wide involvement spreads the decision/responsibility/resources/blame/credits Almost every one of you will deal with a truly major physical plant issue at some point in your career Monday morning QB’s are never wrong