Risk Management

Forming a 501c3 Org Best choice for MEAs and Booster Clubs, most lucrative tax saving benefit Establish Nonprofit corporation at State level, Articles of Incorporation Offers some degree of liability protection Create Employer Identification Number Complete IRS Form 1023, EZ version if less than 50K in gross annual revenue. 90 Day wait on EZ, about 180 Days on Long form. State Charitable Solicitations Registration State Corporate Tax Exemption State Sales Tax Exemption File IRS 990 Form

Attorney Have one One with expertise in nonprofit law and experience with event and hotel contracts. Use them Listen to them

General Liability Coverage “Slip and Fall” Coverage Accidents on association premises or at conferences Usually required at larger hotels/conference centers Larger the event, seek more coverage Prices based upon size, attendees and claims history Resources to follow

Event Cancellation Coverage What is Covered Hurricanes Tornadoes Blizzards Ice storms Earthquakes Forest fires

Event Cancellation Coverage What May Be Covered Terrorism Time Limitations Number of days after attack Distance from epicenter of attack Negotiate Limits options Full Terrorism Options

Event Cancellation Coverage What May Be Covered Labor Actions/Strikes Airlines Hotels/Shipping Services Increasingly common Business Personal Property Booths, IT equipment, major giveaways Onsite cash Speaker Cancellation A large, well known keynoter Loss or theft Negotiate

Event Cancellation Coverage What is Not Covered Financial Insolvency Lack of Interest Disease Outbreak War Nuclear, Biological or Chemical attacks Unless specified within terrorism coverage Fear of Travel What if?

Event Cancellation Coverage What it Provides For: Anticipated profit Incurred expenses Returns of sponsorships Exhibitor fees Costs to reschedule Additional marketing expenses

Event Cancellation Coverage Resources/Providers ASAE Aon Association Services Buttine Association Exhibition Insurance

Directors and Officers Coverage As mentioned in Fiduciary Responsibility session, Directors and Officers are personally liable. What it covers: Anti-Trust Disputes stemming from conflicts of interest Membership actions Misuse of finances/poor financial decisions Defamation Allegations of favoritism in contracting

Directors and Officers Coverage What to look for: Duty to defend provisions Think of your reputation and its value Financial rating of the underwriter Claims filing procedures/documentation Make sure you have update carrier with names of current officers Resources ASAE Aon Association Services Travelers Insurance