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RE: Insurance update



I talked to my agent (PemCo) about our situation.  PemCo doesn't write this
kind of policy anymore, but he gave me a good contact of someone that can
get the information for us and give us a quote.

I did, however, have a long talk with my agent about what we should look
for.  There are two kinds of insurance policies that might both be
appropriate at some point.  The one (liability insurance for the board) is
what we have been kicking around since Kathy suggested it about two years
ago now.  The other is called "general liability" insurance.

>From what I gather...

1) Board Liability Insurance - would cover each one of us from inappropriate
actions/directives as the governing body of the corporation.  I don't know
if it's a good example or not, but say we were to decide not to allow
minorities to become members and someone sued us as a result.  We could be
held personally liable to pay any damages awarded.  We would never do this,
of course, but there are probably better examples of things we might
innocently do that someone out there might take advantage of.  My agent
explained to me that we probably each have general liability coverage as
part of our home insurance.  I was surprised to hear that, but thankfully,
I've never needed it.  This would be like breaking someone's car window at
the golf course - nothing to do with my home, but I'm still covered - in my
case up to $500,000 (nobody get any ideas! :)  Individually, that probably
wouldn't be enough as he agreed with Bob's agent that we probably need a
million, but given that my liability would be one-fifth (as one of the five
board members) it might be okay.  I would suggest that each of the other
board members look into what coverage you might already have for this kind
of liability.

2) General Liability - would cover a situation where someone was attending
our meeting and they fell down the stairs.  IF "our landlord" has it written
into our rental agreement that they and their insurance company are NOT
LIABLE for accidents and injuries related to our use of their facility, then
we would have to have insurance to cover the medical bills and potential
pain-and-suffering, loss-of-income, and other general abuses of our legal
system that might come out of the situation.  My agent suggests that we
begin with a written document from our landlord that should state exactly
what kind of coverage we would need to provide while making use of their
facility.  

Bob, did the agents you spoke with say which kind of insurance they are
suggesting?

I hope this is helpful; it cleared up some confusion on my part.  I'll let
you know what kind of a quote I get from my referral.

Rick

-----Original Message-----
From: owner-gsas-board@thekrib.com [mailto:owner-gsas-board@thekrib.com] On
Behalf Of Bob and Judy Holmes
Sent: Tuesday, March 23, 2004 8:07 PM
To: gsas-board@thekrib.com
Subject: Insurance update

Thanks for the input Rick. I talked to my insurance agent (Allstate) today, 
and also another local agent (State Farm). Here's what I have found out so
far:
We can get a $1 million liability policy from state farm for $300 a year 
from State Farm (forgot to ask about the deductible, I'll find out
tomorrow).
We can get approximately the same coverage from Allstate for $217 ($250 
deductible)
I told both agents I would get back to them after the board discussed their 
proposed policies. I have an appointment with the State Farm guy on Friday. 
Allstate I can talk to any time. Both agents recommended the $1 million
amount.
Bob

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