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IMBA Club Insurance/Risk Management

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Rjf Template99

  1. 1. IMBA Club Insurance Program <ul><li>Why Do Mountain Bike Clubs Need Insurance??? </li></ul><ul><li>Exposure to Litigation for Members, Volunteers, Directors/Officers </li></ul><ul><li>People Get Hurt Riding Off-Road </li></ul><ul><li>Trail Building/Maintenance Create Additional Exposure </li></ul>
  2. 2. IMBA Club Insurance Program <ul><li>Fear of Lawsuits Make Landowners Reluctant to Allow Use of Property </li></ul><ul><li>Part of Running a Club as a Prudent, Tightly Run Organization </li></ul>
  3. 3. IMBA Club Insurance Program <ul><li>Personal Assets are NOT Immune from Litigation-even if club is 501 c) 3 </li></ul><ul><li>Volunteers Shouldn’t Be Exposed-They are VOLUNTEERS </li></ul><ul><li>Volunteers May Assume Coverage-Directors/Officers At Risk for Not Providing Protection </li></ul><ul><li>Exposure to Liquor Liability </li></ul>
  4. 4. IMBA Club Insurance Program <ul><li>Municipalities/Land Managers May Require Proof of Insurance </li></ul><ul><li>Shows Responsibility </li></ul><ul><li>Time Trials-Additional Risk </li></ul>
  5. 5. IMBA Club Insurance Program <ul><li>History </li></ul><ul><li>IMBA Program-Prior Broker </li></ul><ul><li>Original Goal of IMBA Program-Provide Coverage for Clubs at Reasonable Price </li></ul><ul><li>Prior Program Initially Worked </li></ul><ul><li>Club Exposures Changed -Program Didn’t </li></ul>
  6. 6. IMBA Club Insurance Program <ul><li>Variety of Risks Mixed in Association Pool </li></ul><ul><li>Program Written Thru Wholesaler </li></ul><ul><li>Newer Exposures Are: Singletrack, TTF’s, DH </li></ul>
  7. 7. IMBA Club Insurance Program <ul><li>Extremely Unfavorable Renewal Conditions </li></ul><ul><li>Many Common Club Activities Excluded (Those with Most Risk to Members/Volunteers) </li></ul>
  8. 8. IMBA Club Insurance Program <ul><li>Why Does IMBA Get Involved?? </li></ul><ul><li>Protection of Chapter Clubs </li></ul><ul><li>Oversee Program Specifics </li></ul><ul><li>Group-Economies-of-Scale/Pricing </li></ul><ul><li>Individual Clubs May Not Be Able to Get Properly Written Coverage </li></ul>
  9. 9. IMBA Club Insurance Program <ul><li>Exclusions on Prior Program </li></ul><ul><li>Trail Maintenance </li></ul><ul><li>Trail Designing </li></ul><ul><li>Trail Construction </li></ul><ul><li>Power Machine Operation </li></ul><ul><li>Trail Built Features </li></ul><ul><li>Trail Cleanup Programs </li></ul>
  10. 10. IMBA Club Insurance Program <ul><li>Scott Chapin-Background/Bio </li></ul><ul><li>Economics/Mathematics Major </li></ul><ul><li>Insurance/Risk Management-17 Years </li></ul><ul><li>RJF Agencies-80 th Largest Firm in US </li></ul>
  11. 11. IMBA Club Insurance Program <ul><li>Worked At Bike Shop Prior to Starting Insurance Career </li></ul><ul><li>Competitive Collegiate Runner, Skier, and Cyclist </li></ul><ul><li>Active with Local IMBA Club-CAMBA </li></ul><ul><li>Trail Building/Fundraising </li></ul>
  12. 12. IMBA Club Insurance Program <ul><li>Focus on Bike Industry Risks </li></ul><ul><li>Retail Bike Shop Program-Proprietary </li></ul><ul><li>Race Insurance Program-Proprietary </li></ul><ul><li>Club Program </li></ul><ul><li>Many Sports Organization Clients </li></ul>
  13. 13. IMBA Club Insurance Program <ul><li>History Continued </li></ul><ul><li>August 2009-Presentation for IMBA Economic Impact of Trail Building (Cayuna Project) </li></ul><ul><li>Learned of IMBA Insurance Issues </li></ul><ul><li>Short Time-Line to Build </li></ul>
  14. 14. IMBA Club Insurance Program <ul><li>Building the Program: </li></ul><ul><li>Risk Exposure Analysis with IMBA </li></ul><ul><li>Listed Common Club Risk/Exposures </li></ul><ul><li>Prospective Carrier-Comfort Level of Full Disclosure </li></ul>
  15. 15. IMBA Club Insurance Program <ul><li>Sample of Identified Risks: </li></ul><ul><li>Trail Building-Mechanized, Non-Mechanized, Hybrid </li></ul><ul><li>TTF’s-Wooden/Earthen </li></ul><ul><li>Use of Power Machines-Chainsaws, Brush Cutters, Mini-Excavators </li></ul><ul><li>Volunteers, Members, Directors/Officers </li></ul><ul><li>Trail Maintenance-Brush Clearing, Downed Trees </li></ul>
  16. 16. IMBA Club Insurance Program <ul><li>Sample of Identified Risks: </li></ul><ul><li>Trail Signing </li></ul><ul><li>Social Events </li></ul><ul><li>Liquor Liability </li></ul><ul><li>Education-Trail building Clinics, Skills Clinics </li></ul><ul><li>10. Social Rides </li></ul>
  17. 17. IMBA Club Insurance Program <ul><li>Sample of Identified Risks </li></ul><ul><li>11. Festivals-Trail Tours, Fundraisers </li></ul><ul><li>12. Weekly Time-Trails </li></ul><ul><li>DH, XC, Skills Centers </li></ul><ul><li>Trail Designing/Building </li></ul>
  18. 18. IMBA Club Insurance Program <ul><li>RJF to 10+ Carriers </li></ul><ul><li>2 Carriers Proposed </li></ul><ul><li>Both within $15,000 </li></ul><ul><li>Internal Actuarial Rating </li></ul><ul><li>Named Insured: International Mountain Bicycling Association </li></ul><ul><li>Additional Named Insured-Clubs </li></ul>
  19. 19. IMBA Club Insurance Program <ul><li>Who is Covered? </li></ul><ul><li>Club Members </li></ul><ul><li>Volunteers </li></ul><ul><li>Employees </li></ul><ul><li>Directors/Officers (for GL) </li></ul><ul><li>Additional Insured-May be Provided </li></ul>
  20. 20. IMBA Club Insurance Program <ul><li>Risks/Exposures-Clubs </li></ul><ul><li>Injuries on Trails Built/Maintained </li></ul><ul><li>TTF’s-Higher Risk Level </li></ul><ul><li>Injuries to Non-Club Members (elevated risk) </li></ul><ul><li>Defense Costs for Alleged Claims </li></ul><ul><li>Personal Injury Attorney will sue all parties </li></ul>
  21. 21. IMBA Club Insurance Program <ul><li>6. Landowners-Recreation Use Statutes may Protect Landowners(not clubs) </li></ul><ul><li>Individual Members Personal Assets At Risk (Misconception) </li></ul><ul><li>Teeter-Tot Claim-$500,000 Open Reserve </li></ul><ul><li>Oregon-DH Area/Camper >$2,000,000 Paid (Other Examples in Managing Mountain Biking Pages 184-5) </li></ul>
  22. 22. IMBA Club Insurance Program <ul><li>10. Rider May Not want to Litigate-Spouse/Family Member May </li></ul><ul><li>11. Paralysis-Worst Case Scenario </li></ul><ul><li>12. Injuries/Negligence Maintenance of TTF’s/Trails </li></ul><ul><li>13. Maintenance Logs-Non-Earthen </li></ul><ul><li>14. Signage </li></ul>
  23. 23. IMBA Club Insurance Program <ul><li>Liquor Liability-Volunteers </li></ul><ul><li>Time Trials-Removal of Athletic Participant Exclusion </li></ul><ul><li>Festivals </li></ul>
  24. 24. IMBA Club Insurance Program <ul><li>Risk Management Solutions </li></ul><ul><li>Avoid Signing Poorly Written MOU’s-Indemnification/Hold Harmless </li></ul><ul><li>Avoid Additional Insured Language </li></ul><ul><li>Land Manager Demands AI/Request Reciprocating AI (Providing Free Value-Added Service) </li></ul>
  25. 25. IMBA Club Insurance Program <ul><li>Avoid MOU “Specifics”-Maintenance Example </li></ul><ul><li>Alcohol (Festivals)-Outside Vendor, Liquor Liability AI Clubs </li></ul><ul><li>Power Equipment Training-Document Training (Stihl) </li></ul>
  26. 26. IMBA Club Insurance Program <ul><li>Time Trials-Avoid Mass Start: Age Bracket of Interval Starts </li></ul><ul><li>Waiver for All Club Activities (Trail Building, Maintenance, Time Trials) </li></ul><ul><li>Signage of Skills Loops-Rating System-Independent Loops-Prioritization on Risk </li></ul>
  27. 27. IMBA Club Insurance Program <ul><li>Properly Designed and Built Trails </li></ul><ul><li>Consistent Management of Trails </li></ul><ul><li>Have a Written Maintenance Plan </li></ul><ul><li>Team up With EMT/Responders </li></ul>
  28. 28. IMBA Club Insurance Program <ul><li>Sixteen Considerations for Risk Management Planning </li></ul><ul><li>Create a risk management team and designate a leader </li></ul><ul><li>Write a philosophy statement </li></ul><ul><li>Establish a trail design and construction policy </li></ul><ul><li>Establish a trail inspection and maintenance policy </li></ul>
  29. 29. IMBA Club Insurance Program <ul><li>Maintain the trail system consistent with policy </li></ul><ul><li>Eliminate unreasonable hazards </li></ul><ul><li>Develop an effective sign system </li></ul><ul><li>Implement a trail difficulty rating system </li></ul><ul><li>Institute rules and advise visitors </li></ul>
  30. 30. IMBA Club Insurance Program <ul><li>10. Develop an emergency plan </li></ul><ul><li>11. Purchase or review an insurance policy </li></ul><ul><li>12. Create a record-keeping system </li></ul><ul><li>13. Develop an incident reporting and analysis system </li></ul>
  31. 31. IMBA Club Insurance Program <ul><li>14. Deploy a trail patrol </li></ul><ul><li>15. Recruit outside advisors </li></ul><ul><li>16. Perform periodic reviews of the program </li></ul>
  32. 32. IMBA Club Insurance Program <ul><li>Common Insurance Misconceptions </li></ul><ul><li>Since our Club is a 501 c) 3, my personal assets are not at risk </li></ul><ul><li>Our Trails are on Public Land-We don’t have liability (Government and Recreation Use Immunity/Limitations) </li></ul><ul><li>Public Land Manager “said” we were covered (often only during the act of trail building) </li></ul><ul><li>Our Waivers Protect Us </li></ul>
  33. 33. IMBA Club Insurance Program <ul><li>Common Misconceptions </li></ul><ul><li>Directors and Officers can only be covered if a D&O Policy is Purchased </li></ul><ul><li>Workers Compensation Rules-Executive Director Position </li></ul>
  34. 34. IMBA Club Insurance Program <ul><li>Negligence </li></ul><ul><li>Duty of Care </li></ul><ul><li>Breach of that Duty </li></ul><ul><li>Injury or Loss </li></ul><ul><li>Proximate Cause </li></ul><ul><li>Negligent Lawsuit-Must Prove All of </li></ul><ul><li>The Above </li></ul>
  35. 35. IMBA Club Insurance Program <ul><li>Coverage Specifics-IMBA Program </li></ul><ul><li>Limits of Liability: </li></ul><ul><li>$2,000,000 General Aggregate </li></ul><ul><li>$2,000,000 Products and Completed Operations </li></ul><ul><li>$1,000,000 Personal and Advertising Injury </li></ul><ul><li>$1,000,000 Each Occurrence </li></ul>
  36. 36. IMBA Club Insurance Program <ul><li>What is Covered? </li></ul><ul><li>Trail Maintenance </li></ul><ul><li>Trail Designing </li></ul><ul><li>Power Machine Operation </li></ul><ul><li>TTF </li></ul><ul><li>Trail Cleanup </li></ul><ul><li>Time Trials </li></ul><ul><li>Most Festivals </li></ul>
  37. 37. IMBA Club Insurance Program <ul><li>Coverage-Continued </li></ul><ul><li>Host Liquor Liability </li></ul><ul><li>Teeter-Totter-Excluded </li></ul>
  38. 38. IMBA Club Insurance Program <ul><li>Costs: </li></ul><ul><li>Based on Number of Members </li></ul><ul><li>Clubs with No Trails-$4 per member </li></ul><ul><li>Trail Construction/Maintenance-$7 per member </li></ul><ul><li>Trails with TTF’s Greater than 36” above Grade-$8.50 per member </li></ul>
  39. 39. IMBA Club Insurance Program <ul><li>Costs: </li></ul><ul><li>$500 Minimum Premium </li></ul><ul><li>$600 Minimum Premium (TTF’s Greater than 36”) </li></ul>
  40. 40. IMBA Club Insurance Program <ul><li>Types of Policies Available </li></ul><ul><li>General Liability </li></ul><ul><li>Directors and Officers </li></ul><ul><li>Inland Marine/Equipment </li></ul><ul><li>Commercial Umbrella </li></ul><ul><li>Race/Event </li></ul>
  41. 41. IMBA Club Insurance Program <ul><li>Mistakes Clubs Make </li></ul><ul><li>Letting Insurance Expire-Exposure to Volunteers-Board of Directors </li></ul><ul><li>Not Checking P.O. Box </li></ul><ul><li>Not Taking Insurance Duties Seriously </li></ul><ul><li>Not Paying Attention to IMBA Communications </li></ul>
  42. 42. IMBA Club Insurance Program <ul><li>Not Taking Board Duties Seriously </li></ul><ul><li>Not Acting “Like a Business” </li></ul><ul><li>Not Following By-Laws </li></ul>
  43. 43. IMBA Club Insurance Program <ul><li>Services provided by RJF </li></ul><ul><li>Certificate of Insurance </li></ul><ul><li>Review of MOU’s (I am not an Attorney) </li></ul><ul><li>Sample Waivers </li></ul><ul><li>Risk Consulting </li></ul>

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