This case is a good example to show all our insured’s the importance of carrying a good size Umbrella policy. With the market being so soft in many regions, there is no reason for not carrying a $10mil Umbrella. The biggest problems is convincing insured’s that these big law suits due happen to small business operations.
From what I understand, the club turned down the offer of higher limits. And possibly neglected to address the drain problem after it was pointed out to them. They’re lucky that criminal charges weren’t brought in this case. The club should go after their agent if the agent didn’t offer higher limits, or if the agent didn’t counsel the insured as to the importance of fixing their negligence, and maintaining their property.
The article in the Star Tribune said the maintenance people did know of the drain but didn’t do anything about it. Not much the agent can do about that. Isn’t there a general manager on site who would be responsible for maintenance?
So the club knew about the drain in a wading pool where children swim. How is that the agent’s responsibility. There are some who assume immediately that it’s the agent’s fault. Did the club disclose this to the agent? Did the club turn down an offer of an umbrella to save a little dough? AFterall some on the board have the mentality that they are insurance poor. The issue is not the agent, but the poor management by the BOARD at this club! Don’t blame the agent for their incompetence.
Hmmmm…. wondering if the club members will be bringing a D&O suit against the club. Failure to carry enough insurance of course is excluded in a D&O policy, but failure to act on maintenance recommendations might be actionable. All I know is if I was a member of the club, I would not be happy if we had to take on a $6mil loan to pay this claim because some yahoo wanted to save a buck or two by not replacing the drain cover. My guess is is that new memberships will be down as who wants to join a club that is $6 mil in debt?
I am not sure why anyone wants to blame the agent for the club’s lack of good risk management but I am sure that agents know all too well that the best way to protect yourself is not just transfer the risk via insurance (which can create a morale hazard,i.e., over-reliance on insurance) but to practice good loss control via good property maintainence. Clearly, D & O would be contested; just because an agent has excess coverage is no substitute for the club’s inaction when the issue became known….
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This case is a good example to show all our insured’s the importance of carrying a good size Umbrella policy. With the market being so soft in many regions, there is no reason for not carrying a $10mil Umbrella. The biggest problems is convincing insured’s that these big law suits due happen to small business operations.
From what I understand, the club turned down the offer of higher limits. And possibly neglected to address the drain problem after it was pointed out to them. They’re lucky that criminal charges weren’t brought in this case. The club should go after their agent if the agent didn’t offer higher limits, or if the agent didn’t counsel the insured as to the importance of fixing their negligence, and maintaining their property.
The article in the Star Tribune said the maintenance people did know of the drain but didn’t do anything about it. Not much the agent can do about that. Isn’t there a general manager on site who would be responsible for maintenance?
The club should go after the agent?!?!?!?!?! You are exactly what everyone on this site b*tches about!
So the club knew about the drain in a wading pool where children swim. How is that the agent’s responsibility. There are some who assume immediately that it’s the agent’s fault. Did the club disclose this to the agent? Did the club turn down an offer of an umbrella to save a little dough? AFterall some on the board have the mentality that they are insurance poor. The issue is not the agent, but the poor management by the BOARD at this club! Don’t blame the agent for their incompetence.
Hmmmm…. wondering if the club members will be bringing a D&O suit against the club. Failure to carry enough insurance of course is excluded in a D&O policy, but failure to act on maintenance recommendations might be actionable. All I know is if I was a member of the club, I would not be happy if we had to take on a $6mil loan to pay this claim because some yahoo wanted to save a buck or two by not replacing the drain cover. My guess is is that new memberships will be down as who wants to join a club that is $6 mil in debt?
Why does this sound less serious than “…Girl killed by pool drain”.
In all due respect to the previous comments, from what I understand, there is no agent involved. Its a direct company writer.
I am not sure why anyone wants to blame the agent for the club’s lack of good risk management but I am sure that agents know all too well that the best way to protect yourself is not just transfer the risk via insurance (which can create a morale hazard,i.e., over-reliance on insurance) but to practice good loss control via good property maintainence. Clearly, D & O would be contested; just because an agent has excess coverage is no substitute for the club’s inaction when the issue became known….
The agent should have drained the pool and stuffed the intestines back in before anyone found out.