Ky.gov
Kentucky Department for Libraries and Archives

Insurance

Building:

  • Actual cost or appraised value plus 10%.
  • Note special features: sprinklers, alarms, brick, geothermal HVAC, etc.

Collection:

  • Actual cost or appraised value plus 10%.
  • Actual replacement value of rare/local items that may cost much more to replace than the original cost.

Types:

  • Flood Insurance: flood and some types of water damage are not generally included in a basic policy.
  • Contents: Anything not attached to the building – furniture, shelving, computers, collection.
  • General Liability: Recommended minimum: greater of $1,000,000 or library's net worth.
  • Umbrella Liability: Extends general liability.
  • Directors and Officers Liability: Base amount is usually $1,000,000 or general liability amount.
  • Bonds: Guarantee faithful performance of a person appointed to handle the financial affairs of someone else – director, bookkeeper, board chair, treasurer, etc. Coverage should be based on amount of monetary exposure for these positions. (How much could be embezzled before noticed.) Typical is $100,000 - $250,000. This chart from the Kentucky Education Cabinet for school districts may be considered as an optional guide.
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REVISED EXPOSURE SCHEDULE​

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​​​EXPOSURE FACTOR 

MINIMUM AMOUNT OF BOND

Up to $25,000$2,500
$25,001 to $125,000$25,000
$125,001 to $400,000 $50,000
$400,001 to $1,000,000$100,000 
$1,000,001 to $2,000,000$150,000
$2,000,001 to $4,000,000$200,000
$4,000,001 to $6,000,000$300,000 
$6,000,001 to $10,000,000$400,000 
$10,000,001 to $15,000,000$600,000 
$15,000,001 to $25,000,000$800,000 
$25,000,001 to $75,000,000$1,000,000 
$75,000,001 to $175,000,000$1,500,000 
$175,000,001 to $500,000,000$2,000,000 
$500,000,001 to $1,000,000,000$3,000,000
$1,000,000,001 to $1,500,000,000$4,000,000
  

(SBE 21.080; 1 Ky.R. 70; eff. 11-13-1974; Am. 1552; eff. 12-9-1990; 28 Ky.R. 1690; 2028; eff. 3-18-2002; 35 Ky.R. 635; 1461; eff. 1-5-2009.) — Taken from 702 KAR 3:080. Treasurer's bond.

  • Host Liquor Liability: Consider adding this coverage if your library will ever host events where alcohol will be served.
  • Mechanical Breakdown Endorsement: coverage added for breakdown of HVAC, telecommunications equipment, etc. This does not cover wear and tear.

Risk Management Ideas:

  • Financial: Have double-signatures on checks.
  • Safety: Clear snow and ice; document accidents and other safety incidents.
  • Security: Install security cameras.
  • Skateboarding: Install anti-skateboarding devices and document them with photos; post signs and document them with photos; document calls to police; keep police reports on file.
  • Vandalism: Document calls to police; keep police reports on file.