Transcript KIWANIS INTERNATIONAL

KIWANIS INTERNATIONAL
COMMERCIAL
GENERAL LIABILITY
INSURANCE
NAMED INSUREDS
Kiwanis International and its owned, controlled, subsidiary
or affiliated organizations now or hereafter constituted
including;
Kiwanis Clubs
Kiwanis Districts
Kiwanis Divisions
Kiwanis Club Foundations
Kiwanis District Foundations
Kiwanis International Foundation
Kiwanis Societies (Canada)
Key Clubs
Circle K Clubs
Builders Clubs
AKtion Clubs
K Kids
Additional Insureds:
Club Members
Volunteers
THE PROGRAM
COMMERCIAL GENERAL LIABILITY - (Bodily Injury, Personal
Injury & Advertising Injury, and Property Damage):
Each Occurrence Limit
General Aggregate
Products/Completed Operations
Personal/Advertising Injury
Non-Owned & Hired Auto Liability
subject to Policy Aggregate
Fire Damage (Any One Fire)
Medical Payments: 3rd Party
Members/Vols.
INCLUDES:
$1,000,000
$2,000,000**
$2,000,000
$1,000,000
$1,000,000
$3,000,000
$ 50,000
$
5,000
$
5,000
Premises/Operations
Products/Completed Operations
Independent Contractors Liability
**NOTE: General Aggregate applies per District !
THE PROGRAM - Contd.
COMMERCIAL UMBRELLA LIABILITY - Excess of
Underlying/Primary Insurance:
Each Occurrence Limit
$35,000,000
Policy Aggregate Limit
$35,000,000**
Self-Insured Retention
$
Includes:
10,000
Premises/Operations
Products/Completed Operations
Independent Contractors Liability
Non-Owned & Hired Auto Liability
**NOTE: Limit applies per District !
KIWANIS Policy Exclusions
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Aircraft/Balloons/Parachutes/Ultra Lights
Sale of Liquor
Motorized Racing/Stunting Events
Bungee & Velcro Jumping
Law Enforcement Activities
Watercraft: Owned, Non-Owned OVER 50’
Asbestos & Lead Related Liability
Med. Payments for Athletic Participants
Care, Custody & Control - Property
Pollution Liability
Firearms Limitation – Live Hunting Exclusion
Employment Practices Liability
Current Market Climate
Ten years of indiscriminate rate cutting
 Investment Income no longer offsets
Underwriting Losses!
 Profit becomes the main objective
 Fewer carriers willing to quote
 Catastrophe Losses – Flood, Fire or Quake
 Reinsurance Market Losses
 Need to increase reserves on old claims
 Restrictions on some classes of business
 Reduced Capacity/Limits available
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Cost Components of Kiwanis
Insurance Program
 Insurance
Premiums
 Claims within the Self-Insured
Retention
 Self Insured Retention for Sexual
Misconduct $250,000!
 Insurance charge per Kiwanian
must fund both!
KIWANIS
INTERNATIONAL
LIABILITY LOSSES - FREQUENCY
11/88 TO 5/03
90
86
80
70
70
60
78
77
56
60
58
70
58
55
55
50
40
30
41
38
31
20
10
4
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
KIWANIS INTERNATIONAL
FREQUENCY BY TYPE 11/88-5/03
Sex Abuse
13
Camps
4
Xmas Trees
1
Haunted House
7
Defame/EPL
10
Automobile
65
Miscellaneous
245
Specl.Events
20
Prop. Damage
104
Slips/Falls
362
Burns
6
0
50
100
150
200
250
300
350
400
KIWANIS INTERNATIONAL
COST BY TYPE 11/88 TO 5/03
Sex Abuse
Camps
10,027.123
53,319
Xmas Trees 7,400
Haunted House
61,520
Defame/EPL
435,373
Automobile
8,073,058
Miscellaneous
833,892
Specl.Events
571,304
Prop. Damage
81,990
Slips/Falls
2,075,540
Burns
462,328
$0
$2,500,000
$5,000,000
$7,500,000
$10,000,000
KIWANIS INTERNATIONAL
LIABILITY LOSSES - COST INCURRED
11/88 TO 5/03
2
2,815
02
20
20
01
57,76
3
271,0
8
00
20
19
99
200,2
98
84
153,6
19
98
157,5
14
05
97
19
96
272,3
24
19
19
95
277,2
7
268,5
2
94
93
19
19
72
443,1
92
19
91
19
718,3
96
246
2,899
,
19
90
1,439
,194
89
19
19
88
4,114
,076
10,99
4,164
12,000,000
11,000,000
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
KIWANIS INTERNATIONAL
Loss Development As Of 5/03
Policy
Year
Valued
May-97
Valued
May-98
Valued
May-99
Valued
May-00
1988-89
3,776,448
3,883,729
3,953,704
1989-90
1,299,794
1,299,794
1990-91
2,278,794
2,255,447
1991-92
Valued
May-01
Valued
May-02
Valued
May-03
3,939,913 4,490,527
4,516,106
4,114,076
1,307,333
1,304,833 1,437,326
1,438,794
1,439,194
2,255,447
3,499,675 2,897,586
2,794,808
2,899,246
10,992,044 11,048,661 11,055,460 11,088,369 10,994,164 10,994,164 10,994,164
1992-93
430,691
442,554
442,918
443,172
443,172
443,172
443,172
1993-94
269,131
236,055
190,556
204,992
693,711
703,149
718,396
1994-95
171,186
317983
286754
272187
268527
268527
268527
KIWANIS INTERNATIONAL
Loss Development As Of 5/03
Policy
Year
Valued
May-97
Valued
May-98
Valued
May-99
Valued
May-00
Valued
May-01
Valued
May-02
Valued
May-03
1995-96
262,580
305,787
287,547
303,547
318,547
267,423
277,224
1996-97
44,444
84,272
234,626
255,353
238,742
248,411
272,305
9,070
48,420
115,065
88,924
142,431
157,514
64,650
91,863
273,662
153,684
98,486
252,522
200,298
161,941
271,082
1997-98
1998-99
1999-00
2000-01
2001-02
57,763
KIWANIS INTERNATIONAL
LIABILITY & AUTO - LARGE LOSSES
NUMBER VS. % OF TOTAL COST AS OF 5/03
773 Losses = 5%
64 Losses = 95%
62 LOSSES OVER $25,000 = 95% OF THE TOTAL
INCURRED COST OF CLAIMS!
KIWANIS INTERNATIONAL
LIABILITY PREMIUMS & LOSSES
11/1/88-02 (As of 5/03)
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Premium
Incurred Losses
KIWANIS INTERNATIONAL
ACCOUNT LOSS RATIO: 11/1/88-02
As of 5/03
22,266,645
Total Losses
15,403,386
Total Premiums
0
5,000,000
10,000,000
15,000,000
Loss Ratio = 145%
20,000,000
General Liability Issues
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A Safety Coordinator in Every Club
A District Risk Manager in Each District
Be Involved, not just “Sponsoring”!
Minimize High Hazard Activities!
Use the Risk Management Packet!!!
DON’T offer others coverage under the
Kiwanis Insurance Program!!!
Protect the Program as if it were your own
Business or Personal Insurance!
When in doubt, Call HYLANT GROUP at
(800) 678-0361
District Risk Managers:
A valuable resource available
to assist in answering
questions about the Kiwanis
General Liability Insurance
Program, and to help in
identifying and dealing with
exposures to loss inherent in
your club and District
activities.
DON’T HESITATE
TO CALL ON
THEM!!!
HYLANT GROUP
501 Congressional Boulevard
Suite 300
Post Office Box 1910
Carmel, IN. 46082-1910
Toll Free (800) 678-0361
Phone (317) 817-5000
Fax (317) 817-5151
DIRECTORS & OFFICERS
LIABILITY INSURANCE
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Covers Directors, Officers, Employees,
Staff, Volunteers, Committee Members
Covers Employment Related Matters
Full Prior Acts Coverage
Pays Defense in addition to Policy
Limits
Defense Costs paid on current basis
No Insured vs. Insured Exclusion
KIWANIS D&O Coverage
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Claims Made Coverage - Important Aspects
What this means for future & past Boards
Affordability Issue
Increased Claims involving Harassment
Discrimination - “Good Old Boy” syndrome
Youth group exposures & impact on the
district
How should clubs make a decision?
DIRECTORS & OFFICERS
LIABILITY INSURANCE
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Includes “Entity” Coverage
Non-Cancelable by the Insurer
Foundations covered at no additional
cost
$1,000,000 Limit with No Retention
Premium determined on a per district
basis
Application Required
Typical D&O Claim
Allegations
Failure to Act
 Mismanagement of Funds
 Conflict of Interest
 Bad Faith
 Unfair Employment Practices
 Wrongful Termination
 Discrimination
 Sexual Harassment
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D&O vs. General Liability What is the Difference?
Genl. Liability covers Bodily Injury,
Property Damage, and Advertising
Injury
 D&O Covers “Wrongful Acts” (not
Bodily Injury, Property Damage, etc.)
plus it covers Employment Practices
Liability hazards.
 Genl. Liability is “Occurrence” Coverage
 D&O is “Claims Made” Coverage
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COMPREHENSIVE CRIME
INSURANCE COVERAGE
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Includes Employee Dishonesty, Forgery,
Money & Securities Coverage
Definition of “Employee” includes District
Chairman, Volunteers, Non-Compensated
Officers, and Committee Members
$10,000 Base Limit with $100 Deductible
$125 Annual Premium
No Application Required