The document outlines risk management practices specific to nonprofit organizations, emphasizing the importance of identifying stakeholders including patients, donors, volunteers, and employees. It discusses various risks associated with events, such as liability for injuries and alcohol-related incidents, and highlights the need for proper contracts, insurance, and best practices. Additionally, it provides information on weather coverage for events, including specific details on triggers and premiums.

1. Presented by: Risk Management Issues in Special Events Team Atlanta

2. Our Presenters Joseph Caruso CIC, SCLA Area Senior Vice President, 25 years risk management experience, Finance and Claims background. Phone: 678-393-5281 Mobile: 770-845-7075 Email: [email_address] Jim Linn Area Senior Vice President, 31 years risk management experience, Finance, Audit, and Underwriting background. Phone: 678-393-5280 Mobile: 770-714-4714 Email: [email_address]

3. Civil and Criminal Liability

4. Elements of Negligence Legal duty to act Breach of legal duty Causal connection Actual damages

5. Risk Management & The Nonprofit Sector Great Free Resource Online www.nonprofitrisk.org Nonprofit Risk Management Center

6. Who are the Stakeholders? Before choosing and executing a risk management plan, the VHA must identify its stakeholders: Patients Donors Volunteers Employees

7. Patients and Risk Management The best risk management practices make the organization able to serve patients better Patients are served in an environment that meets their needs more often More patients are served because the organization spends less money responding to negative events Patients are protected from the organization’s negative risk outcomes

8. Donors and Risk Management Nonprofit organizations are subject to the risk appetites of donors Donors (especially major gifts) must be convinced that the organization will make prudent decisions and investments of their contributions Donors will reduce their giving if bad events happen

9. Volunteers and Risk Management The most valuable volunteers recognize that they are taking risks along with the organization Volunteers who are not concerned about their own risks may actually increase the organization’s risk

10. Employees and Risk Management Employees should not have to suffer the consequences of poor risk management Budgets limited by poor risk financing tools Working conditions compromised by poor risk choices Unneeded diligence to protect themselves

11. Role of Risk Management Good stewardship of donor funds, volunteer time, attention to patient needs and employee protection require good risk management practices For a nonprofit organization, these practices do not differ much from a for-profit corporation’s good risk management practices

12. Certificate & Information Management

13. Contract Review Who Is An Insured? Executive Officers, Directors, Employees and Volunteers of the VHA Additional Insured Status Amends the “Who Is An Insured” section of policy Frequently requested due to litigious society Extent of Coverage afforded is based on Endorsement Waiver of Subrogation Precludes recovery by grantors insurer regardless of liability on the part of the requesting entity Accident experience becomes part of grantors experience rating impacting future premiums

14. Event Liability Anyone can be sued

15. Are You Prepared? What could go wrong: On premises/location injuries Food poisoning Product liability for prizes Damage to premises/location Adult beverage liability

16. Indemnification Depending on the contract, you may become liable for the negligence of others: Employees Volunteers Venue Servers Caterers Bartenders

17. Adult Beverage Liability Impaired decision-making Alcohol-related personal injury Over-serving Serving under age Contributing to DUI accident Contributing to disorderly conduct

18. Know the Law Familiarize yourself with your jurisdiction’s Dram Shop Act laws Synchronize your best practices with the vendors Be sure bartenders and event managers can identify and cease service to over-served and under-aged patrons Consider a designated driver program Call for help when appropriate

19. Know Your Contracts Read your contract and any demands for additional insured coverage Identify all parties whose actions you may become liable for Seek indemnification from third parties when appropriate Implement best practices and encourage others to implement as well

20. Sharing Best Practices Brain storm event hazards both internally and with your Risk Management Advisor and pre-plan response Engage your Insurance Broker in this process! Give strong consideration to subcontracting hazardous tasks such as food and drink service, amusement operation, and security and seek proper indemnification and waivers Collect participant and volunteer waivers Name an on-site incident response coordinator and communicate contact information to all staff and volunteers Establish accident investigation procedures that include witness statements and pictures

21. Weather Coverage Coverage for loss of fixed expenses, revenue, and/or profit associated with weather disruption of an event Rain is the most common peril insured but policies can also be written for snow, temperature, wind, hurricane or lightning Rain coverage is generally written with a coverage trigger of rainfall during a set timeframe in hours and common rain increments are .10, .20, .25, .50, .75 or 1 inch The lower the selected rain increment the higher the cost of coverage Premium rule of thumb is 5% of coverage limit in the middle of the rain increment spectrum Coverage must be bound at least 7 to 10 days in advance and most policies have a $500 minimum premium