disaster planning and insurance discussion
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Disaster Planning and insurance discussion. April 18, 2012. Presenter: Michael J. Brooks Executive Vice President Austin & Co., Inc. Host: Leonard Silverman Executive Director Congregation Kehilath Jeshurun. In Coordination with Yehuda Friedman Associate Director - PowerPoint PPT PresentationTRANSCRIPT
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DISASTER PLANNING AND INSURANCE DISCUSSION
April 18, 2012
Presenter: Michael J. Brooks Executive Vice President Austin & Co., Inc.
Host: Leonard SilvermanExecutive DirectorCongregation Kehilath Jeshurun
In Coordination with Yehuda FriedmanAssociate Director Department of Community Engagement, Orthodox Union
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Top 2% of insurance firms nationwide, in terms of volume
Niche focus- 250+ not for profit customers, often anchored by school’s
100+ Insurance carrier relationships
Servicing customers from Montreal to Long Island to Buffalo since 1853
Employee owned, boutique firm
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Risk to owned assets from property damage (Fire, Theft, etc.)
Risk from liability-Being held legally liable for:
─ Damaging the property of others
─ Bodily injury to others─ Personal injury to others
Keep in mind- PERSONAL liability potential for congregation members, volunteers, trustees, and employees
RISK, AS WE DEFINE IT
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Our Discussion- Ways to address Risk
RISK
TRANSFER(INSURANCE,
CONTRACTUAL)
PREPARE, REACT,
RESPOND
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House of Worship Risk Considerations:Why insurance underwriters “lose faith”
Property Risks
Building Age
Antiquated Fire
Protection
Fine Arts
Specialized Valuations
Deferred Maintenanc
eUnoccupied
Bldgs.
Cooking/Social Events
Historic Buildings
Business Income
Replacement Bldgs.
Liability Risks
Programming for Seniors
and Community
Slip/Fall
Counseling Risks
SchoolsSexual Misconduct
Transportation and Travel
Athletics/Teams
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Solid balance of insurance coverages, reaction agility, and recovery strategies
Minimized pain (financial and otherwise) compared to similar size tragedies
Congregation Kehilath Jeshurun- A tragedy done right?
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Intensive, ongoing review of insurance program
Board involvement, multi-departmental representation
Solid administration of insurance documentation, appraisals, etc.
Sound emergency response planning
Informed, deliberate decision making about risk vs. cost of insurance
Vendor relationships
Congregation Kehilath Jeshurun- A tragedy well handled?
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DISASTER PLANNING- NOT WHAT YOU THINK
Comprehensive, all encompassing plan= 100’s of pages, $10’s of thousands in cost
Requires a consultant
Few outside of Fortune 500 have one
Fog of War example
Too many variables for detailed, granular plan
More realistic- a RESPONSE plan (24, 48 hours), and a general road map after that
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DISASTER PLANNING- WHAT I WOULD BE DOING- QUICK HITS!
Big impact- Modest investment in time/admin
Focus on what you can control, not the variables beyond your sphere of influence
Adaptability/Agility
One page of notes, a few hours of prep time =‘s MAJOR improvement in response
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DISASTER PLANNING- WHAT I WOULD BE DOING- QUICK HITS!
1) Insurance- See separate discussion2) Pre-Arrange/Pre-Screen Vendors: GC,
Cleanup/Resto Company, Real Estate, Transportation, PR Firm, Architect, and…Public Adjuster
3) Building/Re-Building/Moving- Ask your board to consider now- what can they imagine doing?
4) Partners/Rivals/Other HOW’s- Handshake or more formal agreements for space. Long term and emergency.
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DISASTER PLANNING- WHAT I WOULD BE DOING- QUICK HITS! (CONT.)
5) Communication- Social Media, a Youtube script and video, email contact of congregation and stakeholders, phone strategy, ops center, meeting space
6) Tech- Off Site Redundancy. Not just data back up, but can you operate while your building is burning? Need a vendor to assist?
7) Local 1st Responders- Coffee is priceless
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INSURANCE CHECKLIST- DOESN’T EVERYONE ENJOY THIS STUFF?
SPECIALIZATION- Vendor selection is critical- Generalist? Commercial?
CARRIER CHOICES- Litmus test- “A” or higher, NYS Insurance Dept “Admitted”, Lender requirements
VALUATION- Appraisals- (RC vs FRC vs ACV), Historical/Landmarked
FINE ARTS- Torah’s? Art work? Stained Glass, etc
ORDINANCE AND LAW COVERAGE- New code compliance, consultant opinion?
DEDUCTIBLE CHOICES- Annual discussion- Risk Tolerance? Buy Back Period?
LIABILITY INSURANCE- Other variables, separate discussion
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BUSINESS INTERRUPTION INSURANCE:OUR INDUSTRY AT ITS WORST…
What is it?- Extra Expense, Loss of Operating/Net Profit
How Can I Collect?- Must be triggered by a property claim first.
How Much Should I Buy- Hardest insurance decision to make, bar none. Anchored by an educated guess, and endless variables
Format?- A maze of “Actual Loss Sustained”, “Coinsurnace” 1/6 Monthly, Contingent, Dependent, etc
Payroll Plan- Do you really intend to keep your Employees on the payroll while you rebuild? Can you replace them if you don’t? Different answer for different divisions- ie, schools.
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PARTING SHOTS… Your agent/advisor choice is the most important choice
that you make
There is a limit to how much you can plan for specifically, but it is worth the energy to prepare generally
Enterprise wide involvement spreads the decision/responsibility/resources/blame/credits
Almost every one of you will deal with a truly major physical plant issue at some point in your career
Monday morning QB’s are never wrong
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QUESTIONS?… ?