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Q: Is all insurance the same? A: No. There are big differences in coverage from policy to policy. It may look the same, but it's not. Pay attention to: Exclusions (sexual abuse, athletics, medical payments) Endorsements Declarations Page (shows limits, deductibles, coverages)
The fine print makes a difference between the insurance company paying a loss or your YMCA paying for it out of its own pocket.
Q: Is my YMCA difficult to insure? A: Yes. The market is limited because of the exposure in these areas: Athletics Childcare Transportation Camps Scuba diving, rafting, riflery, horses, ropes courses Residence facilities Youth programs
Companies are concerned about the catastrophic loss potential of a YMCA (serious injuries or multiple claimants from one accident). YMCAs are also prone to frequent claims for slips and falls.
Q: Is coverage for sexual abuse the same? A: Definitely not. Forms vary widely between insurance companies. Often, sexual abuse coverage is provided at a lower limit than the general liability limit. Ideally, it should be at a limit of at least $1,000,000 per occurrence. You should look for these variables: Does a sublimit apply to abuse claims? If so, what is it? Are defense costs outside the policy limit? Will the policy cover your YMCA as a corporate entity? What restrictions are on the coverage?
Obtaining this information is critical when developing and implementing an effective Risk Management Program for Child Protection at your YMCA. You don’t want any surprises after an incident has occurred.
Q: What are the factors that determine the premium?
A: Here are some things insurers take into consideration when determining your premium: | COVERAGE
| VARIABLES | Property:
Buildings
Contents
Business Income/
Extra Expense | - construction of buildings
- extent of fire protection such as sprinklers, water supply
- location (rural, urban)
- limits of insurance
| | General Liability | - square footage of facilities; annual revenues
- number of camper days
- number of pools, lakes
- number of participants in childcare, athletics
- number of watercraft; horses
- limits of insurance
- loss experience
| | Automobile | - number and type of vehicles
- where are they garaged?
- used to transport kids?
- cost and age of vehicle
- deductibles
- limits of insurance
- number of passengers
- loss experience
| | Umbrella Liability | - based on a percentage of general liability and auto liability premiums
- limit of insurance
- underlying insurance limits
- catastrophe exposure
| | Workers Compensation | - payrolls
- state you're operating in
- loss experience
- classification of employees
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Q: Can my YMCA control its insurance costs?
A: The answer is yes and no. The following will show you why: | | COVERAGE | YES
| NO | | Property | - Use of higher deductibles
- Install fire protection devices such as sprinkler systems, detectors, alarms.
| - At a certain point, premium savings is negated by having to bear the burden of a higher deductible.
- Underwriter still on the hook for a large loss.
| | General Liability | - Maximize usage of facilities since you are paying insurance based on square footage.
- Eliminate facilities you are not using regularly.
- Avoid losses and minimize impact when they do.
- Implement a meaningful risk management program to earn rating credits.
- Do not take on responsibility for insuring things (events) you do not have.
- Utilize proper Risk Transfer procedures (i.e. Use of Premises Agreements, Waivers, Releases, Additional Insured Status) in favor of your YMCA at all times.
| - Square footage of facility is a fixed figure regardless of how it is used.
- Not all companies “experience rate” based on losses. But most premiums reflect profitability of account.
- Underwriters expect some kind of risk management program to be in place.
| | Automobile | - Maximize usage of vehicles. Sell vehicles that are not used regularly.
- Use smaller vans or buses. Avoid 15-passenger vans.
- Hire good drivers.
- Charter buses when economically feasible, so your YMCA does not have to pay for insurance.
| - Much of rate is determined by location. Los Angeles County is higher rated than Clakamas County.
- 15-passenger vans are costly to insure.
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Joan Dove, CPCU
Risk Manager for YMCAs
415.536.8468
Send e-mail
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