I haven’t seen any risk assessment identifying the probability of occurrence of known or unknown incidents. So at this point, I don’t believe there is a quantifiable answer to this question.
I would expect that the underwriter for the insurance company did a risk analysis before calculating the premium. Underwriters are numbers people. They would have at least shared their conclusions in a narrative form with USMS if they were asked. I can't imagine trying to 'negotiate' an insurance premium without a discussion on the risk of future claims.
Based on this discussion, it seems I was under a mistaken impression from the outset. USMS decided to levy a surcharge on OW events, which may put some of these events out of business, because.... in the opinion of USMS leadership, "OW events represent by far, the most liability exposure to USMS."
Once again I have to admit I haven't taken the time to read the policy, BUT isn't this a general liability policy? Depending on the terms it might cover everything from wrongful discharge, sexual harassment, premises liability, liability for auto injury claims against USMS, and many other things having nothing to do with actually getting wet. The purpose of a general liability policy is to protect against all tortious (or alleged tortious) conduct by anyone insured under the policy.
So we are supposed to just accept this as fact while kept in the dark about non OW claims details?
Sure, why not? Did you feel in the dark before you knew of their existence? Nothing else has changed.
Is it more likely that another swimmer will get run over before another of these mystery claims is made????
Never heard of a mystery claim being made.
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? Or is there an increase in membership dues for 2013?
OW events represent by far, the most liability exposure to USMS, despite the comparatively tiny number of splashes. For 35 years, they have gotten a pass on representative premiums. Not any longer. The "pool" insurance has more than doubled as well.
why not let us decide?
Although I am a big proponent of communication from the Board to the members, this does not fall into the category of information that is necessary to widely share. Even the Board does not know all of the facts, nor do we need such information.
USMS is an organization of and about swimming for health, the members have invested their faith in the Board to make business and policy decisions.
we are adults after all.....
Presumably.
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 we are supposed to just accept this as fact while kept in the dark about non OW claims details?NO, I would suggest you just accept these as the opinions of a person posting on the discussion forum.
Is it more likely that another swimmer will get run over before another of these mystery claims is made????I haven’t seen any risk assessment identifying the probability of occurrence of known or unknown incidents. So at this point, I don’t believe there is a quantifiable answer to this question.
Did the other 2 major claims arise from something that occurred during an open water event? If so, did they occur in the water or on land?
No.
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? Or is there an increase in membership dues for 2013?
