1. CESA 10 Schools Business Insurance – a Primer
January 2018

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

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

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