70 new co-ops. 120 currently organizing.

Stuart Jacqueline Mary Food Co-op Initiative Staff

Questions?

Insurance 101 With: Dane Meisler VP of Marketing, Kapatoes Insurance Services

What you need and what to expect Insurance 101 presented by Dane Meisler of Kapatoes Insurance Services The Country’s Largest Insurer of Retail Health Food Stores and Co-ops

Insurance Policies Needed Prior to Opening Storefront Directors & Officers – Employment Practices Liability General Liability- – office space – Event coverage

DIRECTORS & OFFICERS COVERAGE Directors & Officers Insurance – Covers current Board Members for decisions rendered – Will also cover past and future board members as long as coverage stays in place – Helps relieve board members from their Personal Liabilities (ie: home, business) being called in on lawsuit – Limits starting at industry standard $1,000,000 – Our Program offers a $0 deductible ranging to $10,000 – Our Program offers a 24/7 Attorney Hot line as an enhancement for the policy. You and your staff will be able to utilize if there are any questions on hiring, firing, etc – This policy will also cover Employment Practices Liability Sexual Harassment, Wrongful Termination, Discrimination This coverage is a necessity once you place W-2 employees

Directors & Officers Ctd What is needed to obtain quotes/coverage – Insurance Application – Pro Forma Budget or financials *if available – Quotes take only one day to obtain with application – Policies are issued and electronic copies are available the same day – No payment required to issue policy

General Liability Types of General Liability – Event Liability This coverage can be written on case by case basis or extended events. Range from $250 per each event. More costly option*

General Liability ctd Business Owners Policy – This option also covers General Liability but requires you to have an actual storefront or office. This is the type of policy that will also be placed when the store opens. It is premises specific but can also extend to “certain” events. Not all events but can be used to extend for owners meetings, some membership gathering events. This has to be submitted to underwriting for approval and NOT ALL events will be covered. *more cost effective option

Insurance Policies Needed when Storefront is selected Builders Risk Insurance Business Owners Policy Commercial Umbrella Workers Compensation Commercial Auto Employment Practices Liability

Builders Risk Insurance This policy is only required if you will be performing a Build- Out or renovation of your space You will need to supply the General Contractor information, Certificate from the GC is required* Application process Policy can be written on shorter terms depending on length of the project- 3 months, 6 months, 9 months.

Business Owners Policy This is the main policy for the day to day operations of the store You will look to have this in place as soon as build out/renovation is completed or once you take over ready made space to start setting up the floor, inventory, etc We have an Exclusive Program that no other agent has access to nationwide that was specifically drawn up and catered to our industry – Coverages General Liability Limits- slip and fall, product liability and fire liability Property coverage for inventory, equipment, POS system, walk in coolers, etc Utility services interruption for power outages Spoilage coverage- paying out Retail Selling Price vs the rest of the market paying out claims at Wholesale Private Labeling coverage- if you plan on having the Coops name on any product labels Several more coverage enhancements Quotes take only a few days- all location specific*

Commercial Umbrella Policy An additional Liability Limit that increases your General Liability, Workers Compensation and commercial auto underlying limits Umbrella limits are optional and can be quoted in increments of $1,000,000 all the way to $5,000,000

Workers Compensation Policy State Specific but most states require you carry Workers Compensation from the first day you have a W-2 employee. Most Coops will hire a GM or Outreach Manager as their first hire, this is when we recommend to placing the Workers Comp. Extremely easy from an information standpoint. It is solely based on the number of full time/part time employees, their job descriptions and the estimated payroll the Coop plans on paying the employees for the year. The policy is based on an estimation and is auditable once the policy expires. Classifications we see for most of our Coops – 8006 Grocery Retail; 8810 Clerical Office Employees; 8033 Supermarket Retail – Information needed to quote: Federal Tax ID number, employee count, classifications and estimated payroll for those classifications – Quotes as a start up can be run and issued in one day, especially when your GM/1 st employee starts.

Commercial Auto Only required if the Coop plans on having a commercial vehicle registered under Coop name. IE: Deliveries, etc Information needed to quote: – Vehicle Information -Year, make Model, VIN # – Drivers List- who will be driving, their date of birth and drivers license # – If doing deliveries, mile radius for delivery

Employment Practices Liability Included and added to the D&O policy Covers against Wrongful Termination, Discrimination, Sexual Harassment. We can/should place from the 1 st employee just as we would Workers Comp. At the very latest by the time the employee workforce begins to get hired. Limits can be shared with the D&O limit or can be it’s own separate limit. Limits start at $1,000,000 industry standard and can go to $5,000,000 If D&O policy is in place (and it should be**) we will only need full time and part time employee count to add this coverage to the current D&O policy. If no D&O in place, we will need full application process.

OUR PROGRAM Insuring the Health Food Store/Coop Industry for 30+ years. Originally started the Program with United Natural Foods, insuring UNFI for close to 10 years Program includes close to 3,000 stores nationwide and over 150 Coops in 40+ states The Program has paid out close to 4,000 claims for our Stores! Exclusive Program to work as a buying Group Any Coop references we can provide in your specific state just let us know

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