So, if the Maui Channel accident is the only open-water claim and there are at least 2 other claims against USMS that have nothing to do with open-water events, why are open-water events carrying the burden of the premium increase? Or is there also an increase in cost for pool event sanctions/insurance?Actually, event hosts are carrying only a small fraction of the premium increase.
According to published financial records, USMS budgeted $88,000 in 2012 for liability insurance. The approved budget for 2013 was $124,400. In December the Board increased this to $335,000. Of this $247,000 increase from 2012, I am guessing that only $30,000-$50,000 will be paid by open water event hosts. This works out to be between 12% and 20% of the increase.
I got to my guess, based on the following observations and facts:
1) The $1,000 insurance surcharge is charged to the LMSC not the event host
2) Most LMSC’s have already decided to absorb half or more of the insurance surcharge
3) Some LMSC’s have decided to fully absorb the insurance surcharge with $0 passed on the the host
4) The USMS Open Water committee has received approval and funding for an Open Water Insurance Surcharge relief program to help in need LMSC’s and hosts, by providing financial assistance in the form of partial or full surcharge rebates.
5) The insurance increases I’m noting do not include anything for the the sanctioned events beyond the 75 included in the base policy, the $1,800 for each additional sanctioned open water event. Additional events may drive the host percentage down to a point of 2.
6) My numbers do not factor in insurance surcharge and sanction fees for solo swims (a note on this below)
Solo swims – the main reason for singling out solo swims has more to do with member services and financials rather than any specific risk of these events. A USMS membership costs the swimmer about $50. The new real insurance cost of a sanctioned open water event is $1,800. As a swimmer getting $1,800 of value for $50 is a great deal. For the other members who are paying $1,750 for your swim, not so much.
Or is there an increase in membership dues for 2013?Yes, there was a $2 per member increase in dues from 2012 to 2013.
So, if the Maui Channel accident is the only open-water claim and there are at least 2 other claims against USMS that have nothing to do with open-water events, why are open-water events carrying the burden of the premium increase? Or is there also an increase in cost for pool event sanctions/insurance?Actually, event hosts are carrying only a small fraction of the premium increase.
According to published financial records, USMS budgeted $88,000 in 2012 for liability insurance. The approved budget for 2013 was $124,400. In December the Board increased this to $335,000. Of this $247,000 increase from 2012, I am guessing that only $30,000-$50,000 will be paid by open water event hosts. This works out to be between 12% and 20% of the increase.
I got to my guess, based on the following observations and facts:
1) The $1,000 insurance surcharge is charged to the LMSC not the event host
2) Most LMSC’s have already decided to absorb half or more of the insurance surcharge
3) Some LMSC’s have decided to fully absorb the insurance surcharge with $0 passed on the the host
4) The USMS Open Water committee has received approval and funding for an Open Water Insurance Surcharge relief program to help in need LMSC’s and hosts, by providing financial assistance in the form of partial or full surcharge rebates.
5) The insurance increases I’m noting do not include anything for the the sanctioned events beyond the 75 included in the base policy, the $1,800 for each additional sanctioned open water event. Additional events may drive the host percentage down to a point of 2.
6) My numbers do not factor in insurance surcharge and sanction fees for solo swims (a note on this below)
Solo swims – the main reason for singling out solo swims has more to do with member services and financials rather than any specific risk of these events. A USMS membership costs the swimmer about $50. The new real insurance cost of a sanctioned open water event is $1,800. As a swimmer getting $1,800 of value for $50 is a great deal. For the other members who are paying $1,750 for your swim, not so much.
Or is there an increase in membership dues for 2013?Yes, there was a $2 per member increase in dues from 2012 to 2013.
