2017 Insurance

[Nicola]

Hi All

 

Quotes for insurance have come in – I’m keen to get this squared away before we all go on Christmas break, so we have cover in place before anyone’s on site.

 

Insurance	Cover	Cost
Material Damage	$50,000 - Includes cover for all hired in equipment for events and those items owned by Kiwiburn	$1297.20 Incl GST
Public Liability	$10,000,000	$4687.50 Incl GST
Statutory Liability (incl. Forest and Rural fire)	$1,000,000	$3737.50 incl GST
Event Cancellation	Including Terrorism limit and also EQ	$4584.30 (GST content n/a)
Associations Liability		$1725 Incl GST
	total	$16,031.50

 

What’s different since last year?

-     Possibility of new cover for material damage – this mainly covers damage to containers or any kit we own. Depending on the premium, this may not be worth it?

-   Public and Statutory Liability have increased due to our claim last year. I’m pretty grumpy about this, but it will reduce next year provided there are no claims. We'll keep assessing out optinos and see if we can get it down again next year.

-    Event cancellation – a new quote, kind of pricy, but in light of Seed’s cancellation this year I’d say it’s worth it.

 

Other considerations

On the Associations Liability, Arren has questioned why we have this, and if it’s a BMOrg requirement. My understanding is that it covers the officers from being sued for breaching their duty of care (e.g. negligence) and I personally want to keep this.

 

Arren has also asked about the requirement to have Public Liability at $10,0000,000 required and Statutory Liability at $1,000,000. This is what’s in the new contract, but he asked if there is the possibility to have this Public Liability at $2m or $5m with the landowners approval - incl $1m rural and forest fires, and the possibility of $500,000 Statutory Liability, and then negotiate to increase at a later date. This would reduce the bill somewhat.

 

BMOrg coverage – I really need to know the requirements to include BMOrg in our insurance asap so we can make sure we comply with requirements for being a regional.

[Pete Wyatt]

Thinking about Why we could have to cancel Kiwiburn and hence why we need that insurance of $4584.30 ...

unlike Burningseed by late jan it is very unlikely that there would be enough rain to make access to the paddocks bad enough to cause cancellation, even a major flood could only mean limited or no access to the river or perhaps the bottom paddock

if there is no rain for a month then the event could go ahead but the burns could be very limited

earthquake or other natural disaster takes out the farm access road, not likely and the road could be repaired

I can't think of any other problems...... can you ??

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[Nicola]

I'd prefer to cut the material damage insurance instead of the cancellation insurance.

*bump* for further feedback - I really want to get these policies locked in and paid for next week before we're on site.

[Wendy]

The lawyer we consulted on the contract seemed to think the required insurances are reasonable. I think the costs are unreasonable and they were so damn slow quoting that we had to agree the contract without knowing the full cost and that pisses me off.

However, here we are. I agree that cancellation insurance us important and we might as well get used to it because we'll need it for Stripe in future.

If we have to lose any, let's go for the contents.

[Nicola]

IS the lawyer still available to ask if we need associations liability insurance? I can't seem to get a clear answer on why we need it, just my own opinion.

[Rainbow Ronan]

I'm sure all of these have benefit of some sort but I know very little about insurance, tho I would lean towards cutting the materials insurance. we don't really hire that much, and certainly not anything worth $50,000. and i assume the utes, van etc comes with its own insurance?

I'm in favour out cutting the liability covers in half of this is still possible?

[Wendy]

My understanding of why we need associations liability is so that if someone (say, a disgruntled participant, the landowner, or Worksafe) decides to take us to court, we as individuals aren't liable for any required payments.

On 18 Dec 2016 6:17 p.m., "Rainbow Ronan" <buckfast...@gmail.com> wrote:

I'm sure all of these have benefit of some sort but I know very little about insurance, tho I would lean towards cutting the materials insurance. we don't really hire that much, and certainly not anything worth $50,000. and i assume the utes, van etc comes with its own insurance?

I'm in favour out cutting the liability covers in half of this is still possible?

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[Nicola]

Thanks, Nan.

From what I can tell associations liability it's specifically for breaches of duty of care. (e.g. negligence, on top of statutory fines for health and safety). Also possible for things like defamation, but I haven't been able to get a straight answer on this.
Given the various ways we are liable for defamation (e.g. on the facebook page) I'd rather keep it until we can confirm we don't need it.

Liabilities is hard to cut in half, unless we can renegotiate with Rathmoy about the level of cover.

Materials - it's unlikely we'll have a claim that is big enough to be worth it IMO. We will want to be sure we're insured for any rented vehicles, though - that would be the big one.

[Pete Wyatt]

generally when you rent a vehicle you specify and pay for the level of insurance you want as part of the cost

[Rainbow Ronan]

what was our claim that has caused our prices to go up?

[Wendy]

Required claim to cover lawyer for Worksafe investigation.

On 19 Dec 2016 6:50 a.m., "Rainbow Ronan" <buckfast...@gmail.com> wrote:

what was our claim that has caused our prices to go up?

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[Rainbow Ronan]

ok thanks. i assumed it was just thought I'd check

[Nicola]

Re: Jeanette's questions...
Is there a form of insurance for events that is a better rate or can some items be renegotiated ? 

I suppose in the past have there been any major event or claims?

The claim is as noted above.
There are some kinds of event insurance that may be better, but we haven't been able to fully assess this in time for this year's event. We managed to get a cheaper public liability quote, but it didn't include statutes liability and we're required to get this under the contract (and it's what we claimedon last year).

I'm keen to wrap this up so we can buy insurances tomorrow/Wednesday.

So far I'm hearing we can probably cut material liability. This isn't something we have to vote on, so unless someone specifically wants to vote I'd jus like to hear any further comments/questions/concerns :)

[Nicola]

Okay, just waiting for a reply from Brendan, who said he may have a comment, but this should be confirmed today.

What day do we have people on site from? 9th?

[Rainbow Ronan]

the 5th

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[Brendan]

I think that Insurance is important.

I'd like to remove the Cancellation Insurance for this year.

I agree with Cancellation Insurance generally and I think that we should be getting it next year but the budget is really getting tight now, particularly with the tree work. Note that we'll be clearing out our reserves and don't have much room for anything to go wrong or for any other budget increases. I wouldn't want to be caught short for paying our obligations and don't have a confirmed total price for the catering yet. In the worst case scenario, we'd need to look at cancelling (or cutting costs with) the Summit(s).

I'm not sure on the Material Damage insurance but it's not as significant a cost.

I've removed the Community Project Provision and reduced the Volunteer Reimbursement Provision to help accommodate this and will post an updated general budget soon.

[Nicola]

Okay, I'll get the other insurances booked, but skip cancellation and material damage for now. The liability insurances we need for being on site, so we can have another look at these in early January if there is disagreement.

Cheers, Nicola

[Wendy]

Thank you!

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