[Publib] Building insurance

[James Casey]

No.  We don't have specialized coverage for particular disaster
scenarios, but have a number of insurance plans under the same company
linked by an "umbrella" with maximum liability up to about $5 million.
I suggest that you look into such a comprehensive solution rather than
spending a lot of premium dollars on specific disaster situations that
may never occur.  ----  The greatest danger may reside in lawsuits and
liability claims.  Several years ago a library bookmobile in our area
was involved in an accident involving injury to another person and the
settlement cost the Library some $8 million.  Their umbrella only went
to $3 million.  Hence, the $5 million additional had to be paid out of
the library reserves and additional taxes.  Faced with this example,
many of the public libraries in our area boosted theirs --- some to as
high as $10 million. We stayed with $5 million.   Nobody has a crystal
ball.   But you want your premium dollars to leverage the biggest
potential loss.  (Better to have a higher deductible and apply the saved
premium dollars to raising the liability cap?)

 

I would question whether your agent is giving you good advice if she/he
is diverting premium dollars to a rather specialized additional coverage
rather than strengthening the overall liability limit under a
comprehensive "umbrella" plan.   You might wish to discuss this with
another insurance agent or broker --- especially one who represents a
number of different insurance companies and who can offer  a broader
array of products.  

 

James B. Casey --  My own views.

Director - Oak Lawn Public Library

ALA Council Member

 

 

 

From: publib-bounces at webjunction.org
[mailto:publib-bounces at webjunction.org] On Behalf Of Georgia Bouda
Sent: Wednesday, November 14, 2007 2:33 PM
To: 'publib at webjunction.org'
Subject: [Publib] Building insurance

 

We are reviewing our insurance for next year.  Our agent has suggested
business income insurance as coverage that we do not have, but might
want to consider.  Basically this coverage provides additional funds in
a case where the building has been hit by a tornado or some other
disaster and it is necessary to move to a temporary location to continue
to provide service.  This coverage would pay for rent and additional
expenses to keep you in operation.  Does your library have this type of
coverage?

 

Georgia Bouda

Director

Bloomington Public Library

205 East Olive Street

Bloomington, IL 61701

(309) 828-6091x203

 

 

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