Composition Municipal Insurance 101 NY Municipal Insurance Reciprocal Robert Bambino Syllabus 1.Town Ins. Programs 2.Coverages & Limits 3.Where Premium Dollars are Spent 4.Limits, Exclusions & other Pitfalls to Avoid

I. ‘Typical’ Town Property & Casualty Insurance Program Property InsuranceLoss or damage to buildings, property and equipment Automobile Insurance Liability claims from third-parties and damage to owned vehicles General LiabilityPublic liability claims alleging injury, damage to property and other perils

‘Typical’ Town Property & Casualty Insurance Programs Law Enforcement Liability Claims arising from law enforcement activities & operations Public OfficialsProfessional liability claims arising from wrongful acts of the Board, elected and appointed officials Excess LiabilityAdditional limits above Automobile, General Liability, Law Enforcement and Public Officials Liability

II. Coverages & Limits Property Dwellings, furniture, supplies, business property, equipment, records, computers; extra expenses Blanket limit for all insured property within the Town Automobile (Liability & Physical Damage) Injuries and damages caused by autos, trucks, vans, snow plows; damage to owned/leased autos, trucks and vans $1,000,000 CSL $200 – 1,000 deductible for physical damage

Coverages and Limits General Liability Streets & roads, sidewalk claims, recreation, assaults $1,000,000/ 2,000,000 Law Enforcement False arrest, use of force, civil rights $1,000,000/ 2,000,000 Public Officials Employment practices, civil rights & land use $1,000,000/ 2,000,000 Excess‘Follow-Form’ Policy (Excess limits above liability policies) $5,000,000 to 10,000,000

Other Coverages Inland Marine (“Floaters”)Damage to equipment off premises with a lower deductible Boiler & MachineryDamage to boilers & other equipment not covered within the property policy Crime CoverageEmployee theft and embezzlement Limited Pollution LiabilityCovers sudden and accidental pollution events emanating on-premises

III. Allocation of Premium Dollars: Mid- Size Town

2005 Premium Projections PropertyFlat General Liability+2 to +4 Percent Automobile LiabilityFlat Workers’ Comp+5 to +10 Percent Professional Liability+5 to +10 Percent Excess/UmbrellaFlat

Breakdown of Incurred Losses: Where are the Loss Dollars Going?

IV. Limits, Exclusions & Other Pitfalls to Avoid: Property Decorative street lights & signs not at a covered location Property or equipment that travels > 100’ from a covered location Newly acquired property Clean-up expenses because of a pollution loss  Add to a “floater” policy  Report to broker/ insurer within 180 days  Coverage limit of $10,000 – purchase higher limits

Limits, Exclusions & Other Pitfalls to Avoid: General Liability Owned underground or above ground storage tanks Liability deductibles Property in Town’s care and custody Asbestos/ lead abatement projects  Purchase separate environmental (tank) liability insurance  Change for full coverage  Purchase Garage Policy for confiscated vehicles; floater if storing or warehousing nonowned property  Have contractor provide coverage,or purchase separate policy

Limits, Exclusions & Other Pitfalls to Avoid Public Officials Fines & penalties Wages & benefits – employment practices Fiduciary liability – financial management of employee benefit plans Limited land use coverage EP liability sublimits  Risk control  Purchase Fiduciary Liability insurance policy  Risk control  Increase, remove or practice risk control

Frequently Asked Questions Q: Do I need a Builders Risk Policy? A: Yes, for large renovations and new construction – unless the Gen. Contractor provides it Q: What should the limits be for my employee theft coverage? A: Difficult to determine. You can use: MPL x [ f ] f = efficiency of fraud control methods. Limits may not be available! Q: Do I have coverage for skateboard parks, pools and snowmobile trails? A: Generally – yes, but you should contact your broker or insurer – might be an additional premium

Frequently Asked Questions Q: Do we need to purchase mold coverage? A: Maybe – its something to check on. There may be coverage under the GL policy; the Property policy only covers if it is a result of a covered loss. Q: Which motor vehicles should I cover with Auto Physical Damage insurance? A: Those vehicles you can’t afford to loose or replace.