REQUIREMENTS WHEN RENTING YOUR FRATERNAL PROPERTY Cynthia Traynor Moose International Convention June 20, 2008 Las Vegas, Nevada
New Requirements When Renting Your Fraternal Property. When renting your lodge, property, or facilities either for a fixed amount of money or gratis, you must make sure that the requirements listed below are followed when alcohol is being served during such rental. The person or party to whom you rent must carry Special Events coverage with limits of at least $1,000, for General Liability including $1,000, for Liquor Liability. Your Lodge or Service Center and Moose International, Inc. must be named as additional Insureds under this coverage. You must be provided with proof of this coverage prior to this event. Failure to follow these requirements will result in there being no insurance coverage for you or for any claims arising out of the event, gathering, party, reunion, reception, or other activity for which you rented your lodge, property or facilities.
When Are The New Requirements Effective? The new requirements are effective immediately. Exceptions to the new requirements: Any function for which you have a written contract that was signed prior to May 1, 2008 is exempt from this requirement. You must be prepared to produce a copy of this contract if a loss occurs.
Moose Functions Moose functions are exempt from this requirement. Legion meetings or banquets Chapter meetings or banquets Lodge party or functions that do not include non-members, such as holiday parties. Any fraternal activity or function that is not open to or includes non-members.
Availability of Insurance This coverage can be obtained from: R.V. Nuccio & Associates, Inc. Your local insurance agent or broker. Risk Management is looking into the possibility of setting up a program for this coverage. You will be advised as other programs or providers become available to us.
Host Liquor Liability v. Liquor Liability/Dram Shop Coverage Host Liquor Liability Does not provide coverage for the Lodge under Dram Shop Laws. Covers only the person holding the event. Not acceptable under the requirements for renting your fraternal property. Liquor Liability/Dram Shop Coverage Provides coverage for the Lodge.
What If We Do Not Get This Insurance? Your Lodge will have NO COVERAGE if a claim arises from an event. Your Lodge’s individual officers, board members, and servers could be held personally liable for any claim arising from a rental.
WHY DO WE HAVE THESE NEW REQUIREMENTS? Liquor Liability Claims are responsible for our largest losses. From May 1, 2003 through May 1, 2008: One third of our losses involving claims of $1,000, or more arise from private events being held at Lodges. Private Parties High School Reunions Wedding Receptions
How Will These Requirements Help? Reduce the Risk Pool’s exposure. All Lodges share in losses incurred by the Risk Pool. The Risk Pool pays the first $1,500,000 of any claim covered by the General Liability Coverage before any of our excess carriers start to pay. The Risk Pool assessment for General Liability for the policy year totals $7,526,915. This includes assessments for; Lodges Moose Service Centers Moose Legions Moose Associations Chapters
How Will These Requirements Help? Cont’d. Out of these funds: Payment of all General Liability claims up to $1,500,000. Purchase of Limits in excess of $1,500,000. Expenses in investigation and defending claims.
How Will These Requirements Help? Cont’d. The additional insurance leaves more funds available to pay other claims that arise out of Moose functions. All Fraternal Units share in the Risk Pool losses. The Special events coverage relieves all Fraternal Units from covering losses arising from non-Moose activities. Reduction in payouts may lead to stability in Risk Pool Assessments in future years. Reduction in Risk Pool Liability should lead to steady or decreased costs in purchasing excess coverage. This should also help in stabilizing future Risk Pool Assessments.