Special Events Insurance Keeping the Grinch Away! Chief Business Officials December 13, 2012

Transcription

1 Special Events Insurance Keeping the Grinch Away! Chief Business Officials December 13,

2 What is special events insurance? Why would the school district need special events insurance? When should the school district require special events insurance? What does it cost? How does the school district go about getting special events insurance? What should the school district do if they suffer a loss that is covered by special events insurance? 2C

3 School Districts have citizens, booster clubs, cities, counties, outside athletic organizations, and non-profit and private companies that want to use school facilities for various types of events. Examples include: A parent booster club holding an live auction fundraiser in your gym The PTSA holding a 5K walk A men s group using your gym for pick-up basketball An organization holding a touch football pre-season scrimmage on your football field that is open to all comers A church group that holds Sunday services in your auditorium A wealth manager that wants to present a seminar for the general public in your auditorium 3R

4 Don t Let the Grinch. Special Events Insurance is a way to protect your district from liability that arises from others using your facilities and grounds. Special Events insurance can cover several types of users: Tenant user event = companies, organizations or individuals that have been permitted to use your premises Instructor/Recreation event = Instructors are not employees of your District but may provide instructional services for a fee Nominee event = An event held by you but which may have co-sponsors Concessionaire = Person or company who is permitted to operate a small business on your premises as part of a large short term event Keep in mind. This coverage is for those interested parties that have no access to insurance. Steal Your Deductible! 4C

5 Special Events Insurance has the following advantages: Any individual or organization purchasing special events insurance through this program automatically names the District as an additional insured Can cover users who have no access to insurance but still want to use your facility This is dollar-one insurance. There is no deductible on the policy It can be written for a one day event or for a multiple day event It can cover dram shop liability (when specifically underwritten) The premium is based upon the hazard class and the number of individuals you expect to attend the event SMCSIG functions as the administrator of this special events insurance. All applications for this coverage would be processed through SMCSIG. Some events will require prior approval by the insurance underwriter 5R

6 Why would I need insurance. The School District covers everything. We are raising money for them after all. - The Grinch (Interested Party) 6C

7 Considerations: Will the money from the event be place directly into school district accounts? Will the staff supervising the event be school employees? Will they receive regular paychecks? Will they be paid on School District check stock? Can the District start and stop the event? Can it ask people to leave or determine who can attend the event? Is the special event only for school district students and parents. Or will the community at large be invited to participate? If this is an athletic event that is not part of the regular sports schedule, are participants from outside the JPA participating? Are school district policies and procedures in effect for the special event. (i.e.. if this is an athletic event, are school permission forms, regulations of play, and other normal school rules in effect? Are you willing to risk your deductible for this event? 7C

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9 Your football coach comes to you. He wants to put on a touch football exercise at the high school on June 30. He is inviting anyone from the Bay Area who is a high school player. He is charging an entry fee of $50 per person. It will go into his own checking account to cover the costs of the event and to pay him for his time. What do you tell him. YES No 9R

10 The head of your PTSA comes to you and says they want to hold a fund raising carnival for Valentines Day. It will include one those blow up fun houses. The PTSA is not part of the statewide PTSA. She assures you it will be a safe event. They have no insurance. They are just a loosely knit parent group. The money will go into the PTSA treasury for future support of the school. Yes No 10C

11 The cost depends upon the following factors: What is the type of hazard the special event presents? Hazard I Instruction (non-athletic) classes Banquets Fundraisers Reunions Lectures Community Meetings Art Shows 11R

12 Hazard II Sports competitions (spectator only. No coverage for participants) Fairs and Festivals Outside meetings Parades Food Concessions Haunted Houses Hazard III Heads of state events (Your senator comes to your school!) Night club shows Petting Zoos Union meetings 12R

13 If you have special events insurance premium runs around $300 for the average event No deductible Cost of insurance is deducted from proceeds of the event If you have no special events insurance You save the cost of the premium - $300 You will have to pay your District s deductible ($1500 to $15,000) The JPA will incur defense costs (average of $25,000) The JPA will incur the cost of the liability claim (average is $50,000) Ah, the Grinch likes this! 13C

14 Hazard I $80 - $350 Hazard II $125-$550 Hazard III $200-$900 Additional Premiums are charged for: Alcoholic beverages Covering sports participants Multiple day events Medical Expenses Higher Limits (1M/2M included) Vendors, Concessionaires, Exhibitors coverage if desired Keep in mind, there is no deductible on this policy. 14C

15 Trampolines and bounce houses Automobiles, aircraft, watercraft Property damage to your premises Property in your care, custody and control Worker s compensation Collapse of tents Fireworks Assault and battery Terrorism Punitive Damages Ah, that s no fun! 15R

16 Circus and Carnivals (Including Rides) Mechanical Amusement Devices (mechanical bulls) Motorized Sporting Events Tractor/Truck Pulls Boxing, Wrestling, Hockey, Karate (including practices) Rodeos/Roping Events Aircraft and Balloon Events Professional Sporting Events Fireworks Shows Heavy Metal/ Hip-Hop/Rap Concerts Moonbouncers/Trampolines 16R

17 Step I Identify any Special Event Programs for your School District Step II Either the District or the Interested Party must call SMCSIG. Indicate the type of event and have SMCSIG forward the Interested Party the appropriate application for the event. Step III The Interested Party completes the Application and either s it to svishwa@smcsig.org. or faxes it to SMCSIG. Make the check out to SMCSIG and send it to SMCSIG. If using a credit card, the Interested Party must also complete a Credit Card Payment Authorization and or fax it to SMCSIG as well. Step IV - SMCSIG will issue a Certificate Of Insurance to the interested party, with a copy to the school district. (The school district is automatically. named as additional insured). SMCSIG will retain a copy of the Certificate of Insurance for its records. Some events require underwriting approval. SMCSIG will work with our broker to obtain that underwriting approval for any events in this category. 17C

18 BE SURE TO ALLOW APPROPRIATE TIME BETWEEN WHEN YOU REQUEST COVERAGE AND WHEN THE EVENT OCCURS (AT LEAST 10 DAYS BEFORE THE EVENT). 18C

19 Organizers should set up a first aid station Organizers should designate appropriate First Aid Responders Organizers should arrange for immediate first aid for any injuries The School District should contact SMCSIG on the first regular business day and report any incident that results in injuries. Fill out an Incident Report as soon as possible and sent it to SMCSIG SMCSIG will work with our broker to report the incident and handle the claims process for any School District exposure 19R

20 Judge a man by his questions rather than by his answers. Voltaire At the end of the day, the questions we ask of ourselves determine the type of people that we will become. Leo Babauta Don't forget the Grinch. I know he's mean and hairy and smelly. His hands might be cold and clammy, but I think he's actually kinda... sweet. Cindy Lou Who 20C&R

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