I wanted to report to the membership that on Tuesday August 19, Mel Fabizak ( Slip Committee Chairman) and I met with our insurance brokers representative Michael Sommerhalder and with Tim Lucas the underwriter from the Club’s insurance provider; Hanover Insurance. Tim is the national program manager of Hanover’s Harbor Risk program which provides insurance coverage to yacht clubs and marinas all over the country. For example, Hanover Insurance (through their Harbor Risk program) also insures Milwaukee yacht Club and several yacht clubs in the Chicago area.
Some of you may want to know: Just what does an insurance underwriter do? An insurance underwriter is a person that is a financial professional that evaluates the risks of insuring a particular person or asset and uses that information to set premium pricing for insurance policies. Insurance underwriters are employed by insurance companies to help price life insurance, health insurance, in our case property/casualty insurance and homeowners insurance, among others. As it turns out, Tim is the underwriter that prices out our Club’s insurance. When evaluating risk and how to price the coverage Tim examines the 20 page or so application that we have to complete before every renewal period as well as the Club’s claims and loss history.
Tim formerly raced a 41 foot Nelson Marek designed sailboat and has competed in several of our Queens Cup races, so he is very familiar with our Club. Besides his current job, he now races scows and small one design sailboats.
Mel and I gave a tour to both Michael and Tim that included our clubhouse, grounds, junior clubhouse derricks, slips and docks. Both Michael and Tim commented that, overall our Club is in good condition.
During the tour Tim gave us several suggestions for reducing our risks. After the tour we had a wrap up meeting were we were joined by Pat Nora, GM to document these suggestions and recommendations. His suggestions and recommendations, based on experience, included testing our slips and docks electrical systems on an annual basis and repairing as needed based on testing results, establishing accurate values of our Club’s fine arts such as our trophies and pictures as well as about nine other recommendations to make our Club safer and reduce risk. The less risk we have or the better we manage our risk exposure the lower our insurance premiums.
At the September Board of Directors meeting I will be presenting to our Board these suggestions and recommendations for implementation and further reporting to the membership at the September General Membership meeting.
Thank you for the opportunity to serve our Club.