Optional S F M S Liability insurance 

LIABILITY INSURANCE PROGRAM:

 A policy to protect the Club and its Members against damage that may be caused to another party (person or property).

It is not the intent of this policy to protect the individual club member from damage they may do or may cause to themselves or to their own property.

The S F M S insurance is referred to as a " third party "policy, ie.

It is written to protect the club and its members against loss for damage caused by or action of one of its club members against another party.

In other words it is insurance against loss resulting from liability (obligations) for injury or damage to person or property of others.

 Note: club members acting on their own (not club organized events, field trips etc), are NOT covered under this policy.)

A member conducting operations, as a dealer is not covered.

 Policy:            Commercial General Liability

 Limits:            $ 1 000,000.00 Per Occurrence
                      $ 2 000,000.00 General Aggregate   

 Coverage:       Premises / operations, incidental product liability, Blanket contractual, Broad-form property damage; Personal injury; medical expenses; Limited worldwide liability; Host liquor legal liability; Automatic coverage at newly acquired locations; non-owned watercraft; Fire damage liability.

 Named Insured: Southeast Federation of Mineralogical Societies, Inc.

                            Member clubs as their interest may appear

 Agent:              Snellings-Walters Ins Agcy Atlanta, GA.
Company:        Cincinnati Insurance Company
Policy Period:  4/1/07thru 4/1/08

 The S F M S Does NOT offer an accident policy, all members should carry their own health /accident plans.

Please note that this liability insurance only covering us for any damage done by those clubs (their members) which elect to carry insurance, while engaged in club activities such as field trips and shows.  We are not covered as to damage done to our own members or club property since we are the insured and we cannot sue ourselves for damages.

Clubs which have paid their annual SFMS dues may opt to take the insurance by completing certain forms sent to them by our Insurance Liasion and paying a per member fee as set by the insurance company on or before the cut-off date.  This final date for choosing to accept coverage is set by the Insurance Liaison.  

COVERAGE:

Q.   Under Products/Completed Operations Aggregate Limit:   SFMS has no product nor operations.  What does this $2,000,000 cover?  Could this be for workshops?  Would it apply only to SFMS sponsored workshop activities, or would club workshops also be covered?  Would coverage extend to members or would it only be for non-members?

A.   This provides up to $1,000,000 for each claim with a limit of a total of $2,000,000 for the term.  A claim filed by more than one person would divide a maximum of $1,000,000 among the claimants.  Several lesser claims could be filed without using the total coverage. 

This clause provides coverage for persons other than SFMS members and/or club members who have claims against SFMS or member clubs incurred in the course of operations of workshops, etc.  Members of SFMS and member clubs could not file claims under this policy since they are the holders of the policy and would; therefore, be a claim against themselves.

Workshops should furnish SFMS with a certificate of insurance to cover any accidents, negligence, etc. on their part to cover damages for SFMS and club members or non-members of SFMS and clubs. 

Cost of legal defense on behalf of SFMS or any individual club or club members by the company is not considered as part of the $1,000,000/$2,000,000 limit.

Q. Personal/Advertising Injury Limit: Why do we need this and what does it cover?  Who is covered under this clause?  Are the individual clubs covered or is the coverage only for SFMS?

A. This clause provides protection against intentional tort, libel, or slander claims filed against all members.  Example: Advertising which gives erroneous information against another party causing harm to that party.

Q. Premises/Operations:  Which premises are covered under this clause?  Does it include premises where shows, field trips, swap meets, and all other events sponsored by SFMS or are there exceptions to this coverage?

A. This protection includes any property owned, leased, rented, or otherwise used by SFMS or a member club at any and all events including shows, field trips, or other events sanctioned by SFMS or a member club.  Not covered are events by individual members or groups of members such as tailgate, swap meets, etc. not fully sanctioned by and for the entire club.
 

Q.  Independent Contractors: Would this include dealers at the shows?  What about such companies as Convention Display who come in to set up for the show?  Are Temp Staff employees who help move clubs in and out of the show building included?  Who would be excluded and why?

A. Independent contractors are persons or a group of persons contracted to work on behalf of SFMS or a member club, including but not exclusively those listed in the question.  These contractors may expect safe working conditions but must be held responsible for their own negligence.  We should require outside contractors to provide SFMS and/or member clubs with a certificate of insurance for their employees. 

Q. Contractual Liability: Most clubs have specific mutually agreed to dealer contracts for their show.  Would this cover breach of contract by the club?  Would loss to a club caused by dealer, advertiser, or other breach of contract be covered?

A. Show dealers must take responsibility for the safety of their space rented from individual clubs and should also provide us with a certificate of insurance.  Dealer contracts should include an indemnity clause specifically disclaiming club responsibility for unsafe conditions within the dealer space.  (Clay will send us a sample clause to include in future dealer contracts.)

Loss to the club from dealer negligence is not covered under this contract but would need to be claimed under the dealer contract.

Q. Employees as Additional Insured: Club members are volunteer employees at shows.  Would they be covered for personal injury, loss, and/or other damages?  Would personal injury, loss, and/or other damages to another party caused by a club member working as a volunteer employee be covered?

A. SFMS has no employees.  All volunteers are members of SFMS; therefore, they could not claim damages for personal injury, loss, and/or other damages while working as volunteers.  (Insured/insurer prevents one from filing a claim against oneself.)  Injury and/or damages caused to another party by SFMS or a club member would be covered.

Q. Employee Dishonesty: All SFMS employees are volunteers.  Over the years of our existence, we have never encountered this problem but there can always be a first time.  I believe this is a good inclusion in the coverage.  Just who will be considered employees under this clause and how many such employees will be covered?  Will bonding through another insurance company be considered as first or second carrier?

A. Again, SFMS has no employees.  Clay will check with CNA which his agency also represents, re bonding for our members who are authorized to handle funds and/or sign checks.

Q. Commercial Crime: Does this cover loss from breaking and entering, theft, etc.?  What other types of crimes are covered?  I do not see a limit for this coverage.  Is it also included in the $2,000,000 aggregate limit; $1,000,000 occurrence?

A. This does cover loss from breaking and entering, theft, etc. by persons other than SFMS and/or club members against property of SFMS and/or club members.  The $1,000,000/$2,000,000 limit does apply.

Q. What exclusions apply under each of these types of coverage?:

A. Exclusions of interest to SFMS would be for intentional acts on the part of the insured and those claims compensable under Workman’s Compensation.  Also not covered would be acts of pollution and unauthorized property damage on field trips or land and other property left in such a condition as to cause danger to others. 

For field trips, it is best to have an agreed statement between the landowner and SFMS or the club as to what is allowed and what is not allowed on that particular piece of property.

There are other exclusions which would not apply to SFMS such as no coverage for watercraft, aircraft, etc.

DEFINITION OF SHOWS:

Q. Define "Special Events", further.  What defines a show?

A. Any event in a rented or leased facility, for which a fee is charged, and to which the public is invited can be a special event or show as further defined by those terms. 

This would not include a monthly meeting whether or not a “swap” occurs; a yard sale by a group of members featuring rocks and lapidary items; a yard sale featuring rocks and lapidary items; a Saturday afternoon tailgate swap between members.  Although charging a fee and inviting the public are part of the definition, making a profit need not be a consideration.

Other events such as working with schools, scouts, parks, and other organizations which do not meet the above criteria are not considered special events. 

Q. Will your agency be our insurance contact or will we be handed off the Cincinnati Insurance Company once the policy is written?  Will a claim be filed with your agency or the company?  Will SFMS or the club involved (or both) be notified when a claim is filed?  How are frivolous claims handled by the company?

Where is the break-point for paying a claim?  At what dollar amount does the company deem it less costly to pay the claim or settle out of court and at what point do they consider contesting a claim?

A. When a claim is filed with either Snellings or Cincinnati, it goes first to an on staff claims adjuster specifically assigned to Cincinnati who evaluates it.  If the claim is obviously frivolous, usually a letter to the claimant or his attorney citing coverage of the policy is enough to stop it. 

 The policy includes a “right to settle” clause which means that the company may at times deem it less expensive to settle out of court, thereby prevent the payment of costly legal fees.   At other times, if the claim is large and defensible, the company will defend against the claim. The adjuster makes the decision which course to pursue.

RENEWALS

Q. What conditions are considered when the company decides whether the policy will be renewed?  If renewal will not be accepted, how much advance notice will be given to SFMS?
Will premium adjustments be made when we submit the exact number of members and shows covered?

A.   A decision of the company to decline renewal of the policy is based on lifetime experience of SFMS, not just for the previous year.  Notice will be given SFMS at least 45 days prior to renewal date.

A “mid-term” audit (in our case to be conducted at the end of the first quarter of coverage) will give a more accurate account of coverage and an adjustment in cost will be made at that time.  It is important that all clubs list the date of their show, or a date as near the show as possible, when filing their membership renewal forms. 

CANCELLATION

Q. What circumstances would cause early cancellation by the company?  What would be the penalty for early cancellation by the insured?

A. The company can cancel a policy for misrepresentation or fraud with a 60 day written notice.  SFMS may cancel during the term with a 30 day written notice.  A 10% premium penalty will apply.

SNELLINGS, WALTERS AGENCY, INC.

Q. How long has your agency represented the Cincinnati Insurance Company?  Do you broker for other companies?  In millions, how much coverage do you write annually?  How much of this coverage is commercial?  What is your A. M. Best rating?

A. Snellings Walters has been an independent agency for 52 yeas operating under the rules of the State of Georgia and although they cover SFMS in all states, any claims will be handled under those rules.  They have had a long term relationship with Cincinnati and write $20,000,000 annually as an agency with $7,500,000 of this with Cincinnati.

Cincinnati Insurance Company is rated A++ (highest rating) with A. M. Best, with over $2,000,000,000 in premiums in the United States each year.