Property & Liability 2017 Renewal Details

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The 2017 Property and Liability renewal website is open! Please review the district’s properties and operations for any changes in exposure for the 2017 coverage term.

2017 Rates and Pricing

This year the Pool is projecting rate changes up to 5% based on the claim performance of each district type. Buildings within Flood Zone A will receive a 20% rate increase to include the Excess Flood coverage if purchased. Properties located within the Front Range and East Slope Foothills will have an additional 5% hail surcharge on property rates for scheduled buildings only. This increase can be mostly offset with the Hail Deductible Option or Cosmetic Damage Waiver Credit of 10%. Rates for functions of architectural control, design review, and covenant enforcement is a $260 minimum up to 130 homes, a $1 charge for the next 1,000 homes, and then $0.25 for each additional home.

In addition to the above applicable rate increases, individual members may also see increases or decreases in annual contributions due to other changes such as:

  • New or updated exposures such as operating expenses, values of scheduled items, added property, number of vehicles, number of employees, or payroll changes
  • Change in individual member loss experience over an eight-year rating period
  • Building values and contents values trended for inflation are expected to be less than 1%

Property form changes:

  • Errors and Omissions clause updated to specific real or business property
  • Unscheduled Location clause updated to include real or business property
  • Added Exclusion for nesting, infestation or damage caused by insects, birds, rodents or other animals
  • Real and Personal Property – limitation on age of roofs to Actual Cash Value if roofing material has exceeded the manufacturers’ life expectancy
  • Arbitration Clause added

The pool offers many discounts, so plan ahead when gathering information for your district’s renewal:

  • 8% Multi-Program discount on the Property & Liability contribution when Workers’ Compensation is also placed with the Pool
  • 33% discount on sanitation operations for participation in the Sanitation Maintenance Warranty Program
  • 3% Continuity Credit for districts that have been with the Pool since 2009. Credits are increased each year, up to a total of 20% for districts with good claims experience
  • The average cost savings by coverage line for voluntary increases to deductibles is 10% to 25%
  • 10% discount for voluntary increase of the hail deductible for buildings in the Front Range and East Slope Foothills
  • 10% discount on scheduled buildings for members that agree to the Cosmetic Hail Damage Waiver
  • 5% credit on Liability contribution when 80% of management, supervisors, and HR complete a Supervisor Training Credit course by September 30 of the previous year
  • 5% credit on Liability contribution when 80% of all staff and management complete an Affirmative Defense Training Credit course by September 30 of the previous year

2017 P&L Renewal Timeline

October 31 – All districts’ online renewal updates should be completed

December 1 – Districts that do not complete the online renewal will automatically receive 2017 invoices with a 10% increase above the prior year’s contributions to account for anticipated growth and inflation

Thank you for renewing your coverage with the CSD Pool. Should you have any questions, please do not hesitate to contact us at 800-318-8870.

Workers’ Compensation: If your coverage is not with the Pool, please contact Lei Shi at 800-318-8870 for a proposal, or email a current copy of your policy.

Reminder about Excess Liability Options

The simple argument against carrying excess coverage limits is that special districts have governmental immunity, and therefore higher limits are not necessary. However, this is a dangerous assumption. Government entities are not immune to claims relating to employment practices such as discrimination and harassment. In these types of high-profile cases, legal costs and claim payments can add up, eventually surpassing the basic $1,000,000 General Liability limit provided to Pool members.

General Liability, Auto Liability, Public Officials Liability, and Employment Practices Liability are all covered under a single limit. Purchasing higher Excess Liability limits gives your district the advantage of knowing that claims that exceed $1,000,000 have another layer of limits available to them.

Who Needs Excess Coverage?

Any district, regardless of type or size, can be subject to large claims and lawsuits. However the more employees, properties, or sophisticated operations you have, the more exposure you have to those claims. Litigation costs of defending against accusations of wrongful termination, sexual harassment, discrimination, or similar violations of federal law can be extremely costly. While claims for those who are physically injured on district property are not usually very expensive, one major injury followed by a lawsuit can quickly eat away the $1,000,000 limit.

Even districts with smaller operations can be affected. For example, board members can be sued by their own constituents or by other entities they’ve entered into contracts with. In fact in 2015, the Pool paid out more for board action liability claims than any other liability category.

How can your district take advantage of the Pool’s Excess Liability Coverage?

Your district can increase liability limits at any time. The Pool offers up to a $9,000,000 limit in addition to the $1,000,000 primary limit. Right now during renewal is a great time to review your district’s coverage and budget for an increased limit. An Excess Liability quote sheet is included with every district’s renewal documents, so please get in touch with us to discuss your options.

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