[Board-2017] Insurance Review

[Nancy Gulley]

There are many good ideas out ther right now and perhaps Mike's suggesting
of putting together a committee of " our" lawyers makes sense.  A consensus
that will not cost us a fortune will help us make a decision that does not
include another huge expenditure.
Nanc
On Thu, Mar 30, 2017 at 5:08 PM Roy Briscoe <roysail at hotmail.com> wrote:

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> Things to think about:
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> Has PYC ever been sued?
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> And if so, have they ever gone over the insurance limit?
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>  There right now.  I agree
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> My opinion is the only ones who will make out with us increasing the limit
> is the insurance company and if someone does sue us they will now get $5M
> as opposed to $3M. I think they would go after the lowest hanging fruit
> which is the insurance limit, going
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> after the board members and trying to get a settlement out of them would
> be a lot of work and in my case a useless effort on their part. $7K a year
> is a lot of money to spend and not get any return on it. In 10 years we
> would have spent $70K and have nothing
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> to show for it but a debit record in quickbooks. I don't think it is worth
> it, and as you can surmise, I pay insurance companies as little as possible.
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> Remember insurance is gambling, you are gambling you are going to lose,
> that is why you pay premiums, and the insurance company is gambling they
> are going to win and the odds are in favor of the house, the insurance
> company.
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> Roy
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> Sent from Outlook <http://aka.ms/weboutlook>
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> *From:* Board <board-bounces at portsmouthyc.org> on behalf of
> dswajda at comcast.net <dswajda at comcast.net>
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> *Sent:* Thursday, March 30, 2017 5:46 PM
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> *To:* Board
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> *Subject:* Re: [Board-2017] Insurance Review
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> Nancy,
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> Your are correct in your assessment. The firm will be putting the dollar
> amount on their "time".
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> I just want to remind the board that we did discuss just increasing the
> the coverage. We then conversed as to how much is or would be enough if we
> were sued. I believe I did inform the board that I discuss this with Capt.
> Nadeau and he said if the cost
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> for additional coverage was reasonable then increase the amount. I
> followed the board's request to look into the cost of reviewing our
> coverage and have them make an assessment and recommendations. The current
> cost for $3,000,000 is $5,130.00 and if increased
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> to $5,000,000 it would be $7,130.00, a $2,000 increase. Please advise
> which course of action the board wants to take -
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> David Wajda
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> Commodore
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> *From: *"Nancy Gulley" <nancgulley at gmail.com>
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> *To: *"Board of Directors" <board at portsmouthyc.org>,
> info at blueberrybayfarm.com
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> *Sent: *Wednesday, March 29, 2017 9:03:00 PM
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> *Subject: *Re: [Board-2017] Insurance Review
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> Quick question... The $1500 is a retainer.  As I read your info Dave - I
> understand that once they see the. info they will then inform us how much
> more It could cost.  Is this correct?  I think I agree with Ron.  Perhaps
> just increasing the board and clubs
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> coverage to $5 million would work.
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> Nanc
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> On Wed, Mar 29, 2017 at 4:39 PM Ron Laurence - Blueberry Bay Farm <
> info at blueberrybayfarm.com> wrote:
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> Dave:
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> I very much appreciate your pursuing and efforts so far in this matter,
> that I brought up. However, while I am not an insurance
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> expert, or an attorney, I’m not sure that a review of our liability
> insurance by an attorney is money well spent. According to paperwork from
> Joe Cunningham,  I’m confident that the club and its officers and directors
> are protected on liability claims up to
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> $3million.  What I’m deeply worried about is a claim, and later an award
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> exceeding $3M,  in a case where particularly a child, but even an adult
> for that matter, lost his/her life, because ambulance-chasing personal
> liability lawyers for the plaintiff convinced them
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> that the club was negligent.  Remember, a yacht club, and its officers and
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> perceived to be wealthy and this would no doubt enter into a judge’s
> decision into making an award.  I believe, in the case of whomever of the
> officers and directors have net worth over $3M, that
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> it’s a simple fact that these individuals
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> are not adequately protected and that their assets are at risk.  While
> most likely no one wants to reveal their personal  wealth, perhaps if we
> simply polled the board to find out if increasing our coverage to say $5M
> or some other number is adequate,
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> and with a unanimous vote, then ask Joe what the cost would be.  [and by
> the way, I have a suggestion as to how we could pay for the increase]. I
> think the club has an obligation to both its current and future officers
> and directors that they are protected
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> in the case of such an unlikely event.
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> Ron Laurence
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> Blueberry Bay Farm
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> 38 Depot Road
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> Stratham, NH 03885
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> 603-580-1612
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> www.blueberrybayfarm.com
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> *From:* Board [mailto:board-bounces at portsmouthyc.org]
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> *On Behalf Of *dswajda at comcast.net
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> *Sent:* Wednesday, March 29, 2017 1:59 PM
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> *To:* Board PYC <board at portsmouthyc.org>
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> *Subject:* [Board-2017] Insurance Review
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> I have been in contact with the firm of Drummond Woodsum, 84 Marginal Way,
> Suite 600, Portland, ME 04101-2480. Local telephone number is 603-433-3317.
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> I talked with Atty. Tom Watson who actually lives in Portsmouth on New
> Castle Avenue. He related that a review could take between 3-5 hours and
> the firm would be asking for a $1500 retainer. Once the paperwork was
> received, they would review and make a determination
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> of approximate cost. They would send a letter outlining their scope of
> work and the cost and then ask if we wanted them to proceed.
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> I would suggest that they review our Constitution and By-Laws regarding
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> ARTICLE XVII - Indemnification of Directors, Officers, Agents and Employees
> to determine if it is sufficient.
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> I twice tried contacting the firm of Pierce Atwood at 1 NH Avenue, #350,
> Portsmouth, NH but was unable to make contact through their automated
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> Please advise if you want to proceed - I gather I am requesting permission
> to spend $1500 to retain the services of Drummond Woodsum to review our
> insurance/liability
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> coverage and our Constitution regarding Indemnification.
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> David Wajda
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> Commodore
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