Grand Lodge Free & Accepted Masons of Wisconsin Property and Casualty Insurance Review Presented to: Grand Lodge Free & Accepted Masons of Wisconsin Presented by: Jesse Furrer-CIC CRM Spectrum Insurance Group (715) Ext. 5061

Elements of Coverage Within The Grand Lodge Insurance Program General Liability General Liability Automobile (Hired and Non-Owned Liability) Automobile (Hired and Non-Owned Liability) Umbrella Umbrella Crime: Employee Theft; Monies and Securities; Forgery or Alteration Crime: Employee Theft; Monies and Securities; Forgery or Alteration Property (Voluntary) Property (Voluntary) Directors and Officers Liability (Voluntary) Directors and Officers Liability (Voluntary) Workers Compensation Workers Compensation

Who Participates In The Grand Lodge Insurance Program? All constituent Blue lodges participate in the Liability portion of The Grand Lodge Program. All constituent Blue lodges participate in the Liability portion of The Grand Lodge Program. Participation in the Property and Directors and Officers Insurance portions of the program is voluntary on behalf of the constituent lodge. Participation in the Property and Directors and Officers Insurance portions of the program is voluntary on behalf of the constituent lodge.

What is the overall condition of the Commercial Insurance Marketplace? Stable but gently hardening with increased rates Stable but gently hardening with increased rates Increased medical expenses (medical inflation) Increased medical expenses (medical inflation) Hurricane Sandy (reinsurance issues) Hurricane Sandy (reinsurance issues) Economic uncertainty (can lead to increased claim activity) Economic uncertainty (can lead to increased claim activity) Insurance carriers paying the price for chasing soft market conditions over the past 10 years Insurance carriers paying the price for chasing soft market conditions over the past 10 years

How has The Grand Lodge Insurance Program Performed? Insurance Contract General Liability $2,968 1 Claim $0$20,023 2 Claims Automobile$0$0$0 Property$137, Claims $25,551 5 Claims $30,537 3 Claims Total$140,883$25,551$50,560

What Can Lodges Do To Keep The Grand Lodge Insurance Program Strong? Continue to contact Spectrum Insurance Group prior to lodge activities involving special events. Inspect lodge buildings regularly for general maintenance issues BEFORE a more costly claim occurs. Insure buildings and contents to appropriate replacement cost value as best as possible. West Bend will be conducting inspections at high-value building locations. Please facilitate these inspections. Report any potential claim activity timely to Spectrum Insurance Group.

How Do I Know If Our Lodge Should File A Claim Report? 3 Coverage Triggers For A General Liability Claim: Third Party Bodily Injury or Property Damage Negligence Property Insurance Deductible $1,000

Claim Example #1 Damage to the ceiling tiles and related water damage was covered under the property insurance contract.. Lodge noticed there was water leaking through the ceiling tiles from an above floor heating system. Repair cost: $3,613

Claim Example #2 Damage to the lodge building was covered under the property insurance contract to include water remediation expenses. A water pipe burst causing damage to the lodge walls, flooring and building contents. Repair Cost: $6,483

Claim Example #3 Damage to the building and air conditioning system was covered under the property insurance contract.. Hail damage to the roof, siding, and air conditioning systems of a lodge building. Repair cost: $36,554

Claim Example #4 Damage to the PVC and drain tile underneath the $1,000 deductible. No reimbursement made. A duplex adjacent to a lodge building caught fire. Heat caused damage to PVC pipe and drain tile on the lodge building. Repair Cost: Approx. $900

Claim Example #5 West Bend hired an independent architectural firm to examine the integrity of the structural design of the roof. The design was determined to be the cause of the roof sagging rather than exposure to weight of ice and snow. This claim was denied. Lodge building noticed its roof and beam structure was sagging. Could cause major collapse under the weight of heavy ice and snow. Repair Cost: ??

Claim Example #6 $10,000 of this claim was paid through the Medical Expense limit on the General Liability policy. A visitor at a lodge function tripped and fell down the lodge stairs. There was no apparent safety concern with steps or the railing.

Claim Example #7 This claim was paid under the Medical Expense limit on the General Liability policy. A lodge was rented to a third party for a wedding reception. Water was leaking on the lodge floor from an ice tub supplied by the third party. Several children were playing and running through the area and one slipped and cut his head, requiring stitches. Medical bill: $2,968

Claim Example #8 There was no negligence on behalf of the lodge and therefore the damage to the roof fell back to the homeowners insurance contract. Heavy winds blew a large tree limb onto the roof of a home adjacent to the lodge property. The tree was physically on the lodge property.

Grand Lodge Free & Accepted Masons of Wisconsin Property and Casualty Insurance Review Questions and Open Discussion