1. Component Insurance Overview
Anne Jenemann
Component Relations Coordinator
April 2009

2. Basic Information
PMI requires all components to have and maintain liability insurance coverage (reference the Charter Agreement, section 12, found in the component’s records on the Component System)
PMI makes available general and professional liability insurance for all components for a nominal fee
PMI Component Insurance policies are separate and apart from PMI’s insurance policies

3. Basic Information continued
Coverage under these policies extends to individual components as well as board members and volunteers in their capacity as representatives of PMI Components
Policies are in effect for a 13 month year through February 2010

4. Types of Insurance
General Liability Insurance
-Ohio Casualty (North American Components)
-ACE (International Components)
Directors & Officers Insurance (D&O)
-Zurich (covers all officers)

5. What is General Liability Insurance?
Protection for the organization against risk, loss or ruin in the event of accident , death or fire Including: -Bodily Injury -Medical Expenses -Property Damage -Personal Injury
-Advertising Injury -Fire Damage Liability

6. What is Directors and Officers (D&O) Liability Insurance
Protection for component officers against risk, loss or ruin in the event of claims:
Including: -Bad Faith -Discrimination -Negligence -Personal Injury (slander, defamation) -Violation of antitrust and other government laws

7. Insurance Needs & Costs Evaluated Yearly
PMI Finance and Legal Departments examine exposure to risk yearly
PMI Insurance Broker, CLA Insurance Co., works with PMI to identify the coverage needed for PMI components
Insurance is becoming more difficult to buy, premiums are more expensive, and exclusions and restrictions more common

8. Insurance Invoicing
The cost of the insurance premiums are billed to those components with $2, (US) or more in assets (this information is taken from the annual Charter Renewal and tax returns)
Components under the $2, threshold are subsidized by PMI
Payment forms are included with the insurance package that is sent to PMI components in July
$ payment is due by 1 November
Upon request PMI can deduct the payment from the component’s dues transactions

10. Insurance Package sent electronically in July of each year Includes
Insurance Policy Summaries
Insurance Premium Payment Form
Event Insurance Application Form
Letter to Component Leaders
Insurance Frequently Asked Questions
Power Point Presentation 10

11. Insurance Policies
Policy summaries provide a snapshot
of the insurance coverage extended to the components
Complete policies are available to all
Component officers on the Component Leadership Online Community at under “Shared documents-Community Insurance” for viewing and downloading

12. Event Insurance Application
Event Insurance Questionnaire Form is requested for PMI and the insurance brokers’ internal tracking purposes
Completing this form will alert the insurance broker of the need to request additional special event coverage and will generate a “Certificate of Insurance” if the event is not covered under the GL Policy
A Certificate of Insurance is sometimes required by hotels, restaurants and other meeting facilities to document that your component does have adequate insurance coverage.

14. Event Insurance Application continued
Routine meetings at hotels, etc. are covered events and in most cases do not require additional coverage or a Certificate of Insurance
PMI strongly suggests that components complete this application and requests that a copy of the completed form be sent to PMI for the Component's records. PMI will send the form to CLA Insurance Co. to have a certificate processed if requested

15. Questions and Concerns
Specific questions and concerns should be sent to PMI for follow up with the Insurance Broker
PMI encourages all components to review the insurance policies carefully. If there are questions, seek the advice of legal counsel or insurance experts regarding specific coverage needs for the component particularly global chapters
Components are free to obtain insurance on their own at their own expense
Components that obtain their own insurance coverage must submit a copy of the policy to PMI for review and approval

16. Most Frequently Asked Questions
Use of liquor at events
There is no coverage if liquor is sold by the components as a function of their activity.  If they charge for alcoholic beverages or receive any percentage of receipts from the sale of such beverages, they must purchase Liquor Law Liability Coverage for an additional charge (the cost could run a minimum premium of $500 or $1,000). The event venue may also require that a temporary liquor license be obtained from your local jurisdiction. Any time money is collected which includes the price of alcohol, coverage is excluded.  If this circumstance occurs, additional coverage will be needed. 
It is strongly recommended they use extreme caution when including alcoholic beverages at any event.  

17. Most Frequently Asked Questions
Events that are excluded
Any Sporting Event
Athletic Contest
Exhibition
Fireworks Display
Musical Concerts
Aircraft Events (Including hot air balloon rides)
Amusement Rides
Events Including a Watercraft
Any event other than a meeting for which the public is admitted for an admission charge

18. Most Frequently Asked Questions
Bonding for officer/member dishonesty
There is no coverage for officer/member dishonesty (this coverage is typically referred to as “employee dishonesty’) for the Components. (For example: embezzlement of Component funds or other fraudulent or criminal acts committed by Component officers/members). This type of coverage is crime coverage, not general liability coverage. The coverage Components receive through PMI consists only of General Liability and Directors & Officers Liability. Components with significant assets are strongly advised to consider obtaining such coverage. PMI has inquired and is not able to obtain this type of coverage for Components as a group.  Each Component must obtain a separate policy of their own, should it decide this coverage is necessary.

19. Most Frequently Asked Questions
Driving to a Meeting
The PMI policy covers vehicles rented and driven on behalf of the Chapter.
There is no coverage applicable to members in the course of transit or for liability that may be assessed to them while driving their own automobile on Components business. A volunteer’s own auto insurance would cover them for driving to and from the meetings.

20. Closing
PMI makes available insurance coverage for all PMI Components to ensure that components and their volunteer leaders have adequate protection against potential exposure to liability. With the escalation of COI issues, insurance awareness is more important than ever. CLA Insurance Co. assists PMI with evaluating the liability needs and risks and guides PMI in finding the best insurance coverage available to protect the Institute, Leaders and Members globally

21. For additional information contact:
Anne Jenemann Component Relations Coordinator EM: Phone: 610/356/4600 Ex: 5035