[grc] What are stations doing for insurance? Examples of policy types
rdawson at oregonfast.net
rdawson at oregonfast.net
Tue Jun 2 12:50:36 PDT 2015
re: insurance for stations/boards
--additional perspective
Joe: let me offer informal ideas -- but I have been retired from this
field for 20 years... and no longer am licensed to sue or represent
insurance companies, in addition to operating a general litigation/trial
practice. Nothing I say should be considered legal advice in any way.
Ive just spent 15 years on a nonprofit Board which owns
towers, building and 4 translator licenses. We had substantial
risks associated with those operations. We had commercial tenants.
Different types of insurance "coverage" exist. Generally that means
"who" is protected for "what" varies by the type of that coverage.
Its best to not confuse those types. No one policy type covers all
"lawsuits."
Coverage types normally include (non-exhaustive/approximate name):
1--Comprehensive General Liability (CGL)...which generally
covers/protects the nonprofit entity AND the BoD members
acting within normal scope of duties, for resulting bodily injury to
others, or their property damage (usually with some restriction to an
insured premises).
You can check with your agent to see if your policy version protects
your employees or 'agents' (volunteers?). There may be no protection
for them individually if they are alleged to have caused the injury/damage
...Thus they must hire their own atty, etc.
Discuss with your agent the ability to protect others, such as "volunteers,"
with your policy, perhaps as additional insureds, which may give them
certain policy benefits.
--(Policy benefits may vary by category of 'insured' status)
--policy benefits may be added by possible "endorsements" or "riders"....
Every CGL policy has "exclusions" or "exceptions"....
--ask your agent to describe important ones relative to your operations
....to get a sense of your real coverages;
--(ask for a policy copy !! Read it...!!)
--possible examples of exclusions (not exhaustive):
--injuries//damages from owned or non-owned auto operations;
--alleged damages arising from professional (broadcast) activities
--(think defamation (slander), invasion of privacy, intellectual
property)
--liquor liability
--(think hosting events, parties...)
2) "excess" or "umbrella" coverage...to raise policy limits and possibly
cover certain coverage areas that the"primary" policy did not cover.
**"umbrella" coverage can be a cheaper add-on way to increase
maximum coverage protection amounts vs raising your 'primary' CGL'
limits....
--in the 'old' days, umbrella coverage filled in some primary coverage
lapses or exclusions--ask your agent if that is still true in your state.
--3) "PD"...property damage coverage...for risks to your
bldg/equipment/towers.
--for tower owners...this may need to be a special form...sometimes
called"inland marine";
--Caution !! Some policies have a penalty for your failure to list & pay
for coverage of some minimum value, such as 80% of the fair market value.
--4) "D & O" or "directors & officers" . (I dont think of this as "E&O"
-- others might)
--additional layer of coverage related to the nonprofit, expensive with
limited application.
--usually provides coverage for BoD members...usually.for their
BoD-related intentional actions in certain areas, e.g., such as sexual
discrimination, wrongful termination or certain questionable financial
transactions (e.g., impacting your IRS status, or allegedly improper,
or impacting employee pension plans);
So the BoD member is usually sued directly (in their name) for those
acts.
--it is my impression this E&O generally covers Board members
--ask your agent if this "D&O" covers the nonprofit or not;
Electing to have "D&O" may be influenced by having employees, or
the nature of financial transactions open to the BoD.
While the general CGL covers the nonprofit for many forms of suits
against the nonprofit AND directors operating in the general course and
scope of their duties, some nonprofits consider D&O since D&O appears to
add coverage protections excluded by the CGL for sexual discrimination,
or wrongful termination, or other direct or intentional acts usually that
are not in the BoD job description....e.g., certain intentional financial
actions that appear fraudulent, questionable, etc.
--5) media or "broadcast liability" (think station "E&O" or 'errors and
omissions')
-- I have not heard it referred to as station "E&O" -- but others may --
--Station on-air operation raise additional issues possibly not
covered by your CGL policy:
--some examples may include:
--on-air defamation (think slander, or libel via your website);
--invasions of privacy (many types, e.g., think illegal recordings....)
--intellectual property issues;
Some of these "station" risks may be covered (whole or part) through some
type of "media" or "media/broadcasters" liability coverage...
--Ask your agent...
--or find an agent with experience with station-type coverage...to reduce
efforts;
--6) professional coverage for producers (individually) (this may be
referred to as an E&O policy)
---------------------------------
State law for insurance is different in each state. There is no
national insurance coverage law. Hence policies (or legal interpretation
regarding those coverage terms) may vary per each state !!!!
National insurance organizations produce insurance policy "forms" that
have national codes.
This makes policy form comparison easier. But again, those forms may be
tweeked for each
state. Hence, your agent needs to be asked specific Qs regarding coverage.
All Qs to agents
should be in email or writing...and keep a copy of their response.
And while insurance agents are wonderful people...be diligent/detailed in
assessing or
documenting how they describe policy coverages and related issues.
rand dawson
former BoD -- West Lane Translator Florence Oregon
END 30 ## 30 ## 30 ##
> Joe - Our Atty Mike Couzens, says get Errors and Omissions Insurance.
> Also another atty on our board says check out becoming a Limited Liability
> Company (LLC) - in OK, filing with the Sec'y of State for LLC only costs
> $100.
>
> MaryFrancis
>
>
> *Mary* *Francis,* *Voices* *of* *Oklahoma* *President*
> *NUUF* *Radio* *Project* *-* *KVOY.org <http://kvoy.org/>* *-* *and* *Web*
> *Magazine* *-* *voicesofOK.org <http://voicesofok.org/>*
> *c.* *405* *474-0695*
>
> *LWVOK Board Member **http://www.lwvok.org <http://www.lwvok.org/>/
> <http://norman.ok.lwvnet.org/>*
> *Citizens Climate Lobby -Oklahoma
> **https://www.facebook.com/CitizensClimateLobby.ok/
> <https://www.facebook.com/CitizensClimateLobby.ok>*
>
> On Sun, May 31, 2015 at 1:19 PM, Fayetteville Community Radio <
> faycomradio at gmail.com> wrote:
>
>> We are sorting out whether insurance is affordable and worthwhile for
>> our
>> soon to go on the air LP station.
>> Which, if any of these, does your LP station have:
>>
>> General liability for tower and studio?
>> Coverage for "lawsuits" (slander and personal injury, etc.)
>> Property coverage for tower and transmission equipment
>> Property coverage for studio equipment?
>>
>> How much are spending, or are willing to spend, on these?
>>
>> Joe Newman
>> KPSQ-LP
>> Fayetteville Arkansas
>>
> Joe,
>
> As independent producers, we too need E&O insurance, and I can highly
> recommend Walterry, which has been in this business forever. They offer
> excellent coverage through Chubb MediaGuard.
> http://www.walterry.com/radio.php
>
> Gregg
>
> __________________________
> Gregg McVicar
> Host/Producer
> UnderCurrents
> www.undercurrentsradio.net <http://www.undercurrentsradio.net/>
>
>
>> On May 31, 2015, at 11:19 AM, Fayetteville Community Radio
>> <faycomradio at gmail.com> wrote:
>>
>> We are sorting out whether insurance is affordable and worthwhile for
>> our soon to go on the air LP station.
>> Which, if any of these, does your LP station have:
>>
>> General liability for tower and studio?
>> Coverage for "lawsuits" (slander and personal injury, etc.)
>> Property coverage for tower and transmission equipment
>> Property coverage for studio equipment?
>>
>> How much are spending, or are willing to spend, on these?
>>
>> Joe Newman
>> KPSQ-LP
>> Fayetteville Arkansas
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