CESA 10 Schools Business Insurance – a Primer January 2018

Types of Coverage – What Should Your Cover Provide? Property General Liability Bodily Injury Property Damage Personal Injury Automobile Umbrella Cyber Workers Compensation November 29, 2018

What Does Property Coverage Insure? Pays for physical damage to buildings Pays for physical damage to business personal property Pays for Business interruption/Extra Expense November 29, 2018

How Should Your Property Coverage be Tailored? *Special perils” (subject to exclusions); burden of proof for exclusion is on company Deductible within your appetite (savings with $5K/$10K deductibles) Coverages to be Included: Building/ordinance/increased cost to construction Business Personal Property should include: Band Instruments, Uniforms, Cameras, Athletic equipment and “traveling” property, contractors equipment, property of others Transit of Business Personal Property Equipment Breakdown Coverage for underground fiber optics (geo-thermal) Pollution/ Flood Historical Value? Errors and Omissions (typically $100,000 limit; Kathy’s phrase “oops I forgot”) Claim Discussion/Questions November 29, 2018

Bodily Injury and Property Damage General Liability: Bodily Injury/Property Damage Personal Injury Errors and Omissions Cover Bodily Injury and Property Damage Personal Injury, including cover for discrimination, civil rights violations and employment related actions Auto Liability including UM/UIM Public Officials Errors and Omissions Prior Acts Coverage (except auto) available Comment: Personal Injury and Public Officials E and O (Educators Legal Liability) DO NOT REQUIRE A DEMAND FOR MONETARY DAMAGES. Why is this important (as to defense). November 29, 2018

What Does General Liability Cover? Pays for Bodily Injury which means sickness, disability or disease, sustained by a person during the policy period, including death resulting from any of these Claim example: Slip and fall of a parent on premises; slippery bathroom floor Pays for Physical Injury to or destruction of tangible property: Student damages property at another school Claim Discussion/Questions November 29, 2018

What Does Personal Injury Cover? Personal Injury means injury, other than bodily injury arising out of one or more of the following offenses: False arrest/detention Malicious prosecution, Wrongful entry or eviction, invasion of the right of private occupancy Libel, slander or defamation of character Sexual Harassment, including workplace harassment Assault and battery, including sexual molestation Discrimination including employment discrimination Other civil rights violations, including employment-related violations Claims Discussion/ Questions: Libel/Slander, harassment, discrimination, wrongful termination November 29, 2018

What Does Errors and Omission Coverage/Educators Legal Liability Cover? Errors and omissions means any misstatement or misleading statement or act or omission or neglect or breach of duty including malfeasance and nonfeasance by an insured in their capacity as an insured Claim Scenarios - Typical allegations found in claims include: - Failure to educate - Failure to supervise a classroom - Loss of accreditation - Employment-related lawsuits claiming sexual harassment, wrongful termination or discrimination - Misstatements, misleading statements, breaches of duty, neglect, errors or omissions made by a paid or volunteer board member who assists the school in making critical decisions about operations and economic survival - Failure to respond to or prevent bullying activities of the students November 29, 2018

What Does Cyber Cover Provide Website Publishing Liability (infringement on another website) Security Breach Liability (acquisition of “personal information”) Public Relations Expense (Crisis Management) Security Breach Expense (Crisis Management) Defense (Attorney) Restoration of Electronic Data, Computer Data Funds Transfer Fraud (3rd partying debiting a transfer account) Extortion Threat and Ransom (to perpetrate an e-commerce event) Extra Expense (during an interruption) Claims Discussion/Questions November 29, 2018

Who is an Insured (WHO IS COVERED) You, and past or present employees or elected or appointed officials, authorized volunteers while acting for you including students and all commissions, agencies, boards, districts, authorities, PTA’s PTO’s Booster Clubs or similar entitles when YOU retain the right to control the details of the works. Broad definition of insured important When in doubt of covered party’s, contact your agent November 29, 2018

What Does Umbrella Coverage Provide Recurring Aggregates on primary policies (umbrella unnecessary) Umbrella for non-recurring aggregates (other carriers) Still limited to primary underlying and total umbrella. Limits do not reinstate. EXAMPLE: $5,0000,000 aggregate limit (GL, BI/PD, Personal Injury E&O): All coverages triggered out of one occurrence apply as one claim Aggregate “resets” if used $1 Million Underlying - $4 Million Umbrella Once the $1Mil underlying and $4 Mil umbrella are used, the policy limits are depleted until renewal. November 29, 2018

Financial strength and geographic areas licensed Broadness of Coverage Choosing a Carrier Financial strength and geographic areas licensed Broadness of Coverage Structure of Coverage May be Different Lack of policy aggregate Separate policies for liability covers (with no recurring aggregate) Coverage YOU need to request MMA’s policies typically cover all items on previous slides Always read your policy for exact terms, conditions, exclusions and definitions. November 29, 2018

WRAP UP Questions? *MMA in conjunction with our partner, WERMC/Kathy Johnson are happy to review your insurance program. November 29, 2018

Legal/regional regulatory statement to be added here if required.