Insurance Trends: Is your insurance coverage keeping up with your library’s changing risk exposure?
Part of our commitment to our clients, and the overall library community, is to continually monitor the insurance landscape for new insurance trends and company partners.
Libraries are expanding into areas previously not considered traditional, such as renting out fishing poles, sewing machines, etc. It is important to know that drones are not covered under your typical insurance policy. A discussion should take place with your insurance consultant should you ever decide to consider venturing into owning and/or renting out drones.
When you contract out services, always secure proof of workers compensation insurance. If subcontractors are on your premises and become injured, your insurance carrier may have to respond to a claim in the absence of workers compensation insurance carried by the subcontractor. Otherwise, this exposure most likely will be picked up at audit and you may be charged additional premium.
Here’s a real-life example: A volunteer becomes injured while performing services at the library. For medical expenses associated with such an injury, they will seek reimbursement from their health insurance carrier or possibly your medical payments provision under your general liability policy. One of our insurance company partners offers accident medical insurance for volunteers at a very nominal cost. It can be as low as $4 per volunteer subject to a $300 minimum premium. Why not consider this extra perk for those individuals that volunteer their time to the library. That way you transfer the risk instead of taking a chance with a general liability policy that may not be comprehensive for volunteers.
Cyber Liability/Data Breach.
Many libraries have some form of limited cyber coverage on package policies. While many libraries don’t store sensitive information on their servers, some retain credit card information. But most library servers include membership data, which is personally identifiable information (PII). It’s not always the money that interests hackers. It’s information and power. And some data breaches can go undetected for years. If you experience a data breach, you’re required to take steps to correct the issue. Most general liability policies are not designed to step in and make those steps happen. For instance: notifying patrons, computer forensic assistance, providing credit card monitoring services for those affected, defending a lawsuit, and ransom/extortion threats.
We know that libraries offer a variety of programs to their patrons to benefit the communities they serve. A discussion should take place with your insurance consultant if a program may include exposures that are possibly outside the realm of your intended insurance coverage. Contact us if we can help you to make that determination.
Your best interests are our #1 priority, which is why we believe it is important for you to have more than one option. As an independent agent brokerage, we work for you, not an insurance company. We shop and evaluate several companies and present you with the most favorable coverage options. We’re your partner in navigating risk.
To review your library’s current policy and get assistance with analyzing your risk exposure, contact Library Insurance Specialist Estelle Markham at 312-425-2359. We’ll be at the Illinois Library Association (ILA) Conference. Stop by Booth #306 and say hello!
Kamm Insurance Group