In my opinion, the need for Errors and Omissions insurance for the CALPA Board of Directors is remote. It is a daunting task to imagine any scenario in which the Board would be able to inflict damages, particularly above and beyond the limits of our existing Liability coverage.

CALPA has no employees, the source of 90% of liability claims;

CALPA does not deal with the public at large and its membership consists of a few individuals and a maximum of 82 Cooperating Park associations;

The services we offer are limited in scope and entail few, if any, financial or contractual obligations;

Our activities are observed by the State Parks Department which helps to steer us away from possible misdeeds;

There are only 2 or 3 Board meetings a year which are attended by only Board members plus a few occasional speakers and guests; The annual Convention is held on locations at which a third party would be responsible for any accidents or health problems;

Both State and Federal laws preclude liability by Board members who perform in a responsible way even if they are guilty of harm or loss to others, so long as there is Liability insurance in effect. Any Board action which could attract lawsuits would have to be intentional, willful, and without regard to the victim- conditions which are not likely to occur.

However, One possible cause of legal concern could result from action by and among the Directors themselves. Assorted acts of discrimination or harassment, which is permitted or ignored by the Board as a whole, could result in legal action against the Board by a Director. It is questionable, however, that an insurance policy would cover that eventuality in the first place.

The primary reason for Errors and Omission insurance among groups like CALPA is to reassure Board members that they are financially protected in case the next-to-impossible should happen. It makes it easier to attract talented Directors who might otherwise decline to serve because they might have a great deal to lose through no fault of their own.

RECOMMENDATION

If the CALPA Board decides to obtain Errors and Omissions insurance I recommend TRUEX INSURANCE, which is already the carrier for CALPAs Liability coverage (a prerequisite in any case). We would be charged the minimum rate which is $700 annually, with a discount for a 3-year policy. Particular care should be given to any exceptions or exclusions, such as travel to and from meetings or alcohol related problems, which might require a higher premium. Data obtained in preparation of the Insurance Survey of 2001 showed that TRUEX was consistently the least expensive and the most experienced in our particular non-profit activities.

Jim Adams
20936 Via Colombard
Sonoma ,California
(707) 996-7102