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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.

 

REVISED EXPOSURE SCHEDULE

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.