CAMP HEALTH
Poison Ivy Ticks
HOW TO HELP CAMPERS & PARENTS DEAL WITH HOMESICKNESS
ANSWERS TO 10 IMPORTANT INSURANCE QUESTIONS
FROST'S SUMMER CAMP SOURCEBOOK - THE DIRECTORY OF CAMP SUPPLIES AND SERVICES
FROST'S SUMMER CAMP SOURCEBOOK COMPANY LISTING FORM
Ask any camp director and chances are, they'll agree with us when we say that insurance premiums are in the same category as death and taxes: they're inevitable. And, like taxes, they have a tendency to go up, with no promise of relief on the horizon. A random survey of camp directors listed insurance premiums as one of their major expenses; but unlike most other expenses, insurance is one line item that directors hope to never use. So why spend so much money on an item that, hopefully, won't be utilized? State regulations usually mandate auto insurance for any vehicles used in the operation of the camp, and workmen's compensation for all employees. Mortgage provisions often require mortgagees to provide adequate property insurance. Common and good business sense dictate purchasing other types of insurance, such as camper medical and injury (primary or secondary), umbrella, multi-peril, and interruption of business. During the process of conducting our random survey, a pattern of issues and questions arose. We compiled a list of the ten most important issues facing camp directors today. The answers were provided by a panel of camp directors and insurers.
1. WHAT TYPES OF INSURANCE SHOULD CAMPS HAVE?
Ed Schirick,
Senior Vice President of Markel Rhulen Underwriters and Brokers,
recommends the following types of insurance: property damage,
liability, umbrella, camper and staff medical/accident coverage, and
workmen's compensation. Schirick points out that business
interruption insurance, to cover loss of income as well as extra
expenses incurred due to interruption, is written into all of his
company's property damage/fire policies. Under the heading of
liability, Schirick recommends coverage for all employees and
volunteers, as well as insuring the camp infirmary against
allegations of malpractice, and malpractice insurance for the camp
doctor and infirmary employees. He also recommends that liability
policies include coverage for incidents involving sex
abuse/molestation. Schirick sees employment practice liability
insurance as a developing area of concern in order to comply with the
Americans with Disability Act and the Civil Rights Act of 1991.
2. HOW MUCH INSURANCE IS ADEQUATE?
Steve Libbing, AAI,
Account Executive at K & K Insurance, sees this as a wide open
scenario. . . and his toughest challenge. For property damage/fire
insurance, he recommends insuring for physical property value-with an
eye towards replacement costs. For liability policies, he won't sell
under $1 million, with an in-house binder. He generally recommends
$25 million umbrella coverage, stating that umbrellas are often
overlooked, but very useful. All other types of insurance are subject
to individual circumstances. For example, business interruption or
time element insurance to cover a camp if it had to interrupt part or
all of its activities due to fire or weather damage would be quite
different for an overnight camp with a capacity of three hundred than
it would be for a day camp with a one hundred camper capacity.
Similarly, automobile coverage would be different for a day camp that
provided daily bus transportation for all campers, as opposed to the
overnight camp that contracts with a bus company to provide
transportation to and from the camp, and only relies on its own buses
and vans for emergencies and/or limited inter-camp activities. Marine
floaters, which he recommends to insure transportable assets of value
(e.g., boats, computers, tack equipment) will vary widely, depending
on the type of activities camps offer. He says that it's not his job
to tell clients how much insurance they need, but to make sure that
if a claim is filed, the coverage is there. Judy Bunchuk,
owner/director of Le Camp in Spring Valley, New York, sums it up by
saying, "You hope you have enough for the one time you might need
it."
3. SHOULD YOU PROVIDE PRIMARY OR SECONDARY MEDICAL
COVERAGE?
Bunchuk used to provide primary health/accident
insurance for her campers, but found that "one claim could really
blow you away!" Her premiums rose, so now she provides secondary
coverage, going to the camper's parents' policy first, and then using
the camp policy to cover anything the parents' policy doesn't cover.
While many camp directors and insurers agree with her, Bob Gentile,
director of Wilbur Herrlick Camp in Patterson, New York, points out
that before going to a secondary policy, you have to look at who your
campers are. Gentile's camping population is mostly inner-city
youths, whose families often don't have health insurance.
Consequently, he provides both his campers and counselors with
primary coverage. Similarly, Ken Dilling, Director, Special Risk
Division of the American Income Life Insurance Company, points out
that his company provides primary health and accident insurance for
camps and campers all over the country. However, he suggests that
camp literature clearly state that the coverage provided is a
"limited medical reimbursement" policy, covering emergency and first
aid services.
4. IS IT BETTER TO PURCHASE WORKMAN'S COMPENSATION INSURANCE
PRIVATELY, OR USE STATE INSURANCE POOLS?
Libbing states that he
will provide whatever kind of insurance a client wants, but notes
that private workmen's compensation policies are generally more
expensive than contributing to the state pool. The states dictate
what percentage of an employee's wages must be allocated for
compensation, with most falling between 4% and 11%, but often going
higher. However, since camp counselors fall into higher risk
categories and are usually seasonal workers, insuring them is a
losing process for most carriers. As a result, private workmen's
compensation insurance is expensive, and most camps go into a state
pool, which is highly regulated, and far less expensive than private
coverage.
5. WHAT CAN BE DONE TO LOWER PREMIUM PAYMENTS?
Bunchuk
advises camp directors to look for the company that will give you the
most at the least expense-comparison shopping is the key here, with
the informed consumer benefiting the most. She also refers to her
switch-over from relying on her camp to provide primary
health/accident insurance. Since going to the parent's policy first,
and the camp's accident insurance policy second (or if parents don't
have insurance), her premiums have gone down dramatically. Schirick
adds that by providing-and using-camper and staff medical/accident
insurance, a camp director can avoid using liability insurance as a
primary source of funds. By insulating the liability pool, a camp
director can demonstrate stability in liability claims. This
stability is key in keeping premiums in check. Gentile points out
that it is important for camp directors to work closely-as
partners-with their insurance agents to keep lines of communication
open, and premiums down. He points to an incident that occurred
several years ago. Like most camp directors and insurers, Gentile
finds that, regardless of the level of supervision and other
precautions, accidents happen. This was the case when a child,
playing on a supervised swing set, fell off and broke his wrist. The
counselor followed camp policy and filed a thorough written report.
The parents of the injured child cited lack of supervision on the
part of the camp and considered legal action. Shortly thereafter,
Gentile met with his insurance agent. The agent and his supervisor
visited the camp to review various policies and procedures that were
in place, verifying that the counselor and the camp had not been
negligent. As a result of this partnership-between Gentile and his
agent-and the proper execution of emergency policies and procedures,
the following year, instead of seeing his premiums rise, they were,
in fact, lowered. Libbing would undoubtedly agree with Gentile. He
advises that camp directors talk to their carrier, and ask
specifically what would assist them in lowering insurance premiums.
He urges directors to give their insurance agent or company "reason
to credit you. The more information you provide, the better chance
you have of getting credit. Don't leave anything to the benefit of
the doubt," he cautions. "Show safety plans, signage, evacuation
plans, evidence that you have well-trained counselors, hiring
guidelines, plans for going over everyday routines, information
regarding sprinklers, extinguishers, and so on."
Failure to provide this information can lead to higher premiums. Libbing also suggests that you insure only those buildings you need to; for example, don't insure a shed that wouldn't be replaced if damaged or burned down. Finally, he says to be as specific as possible. "Don't just say 'miscellaneous boats'. Describe the model, make, serial number." Keep lines of communication open and be as clear and precise as possible in order to lower premiums. Brother Thomas Lee of Camp Marist in Center Ossipee, New Hampshire, feels that using mature, experienced staff is a way of keeping premiums in check. All of his staff are over 21, and for specialized activities-e.g., riflery, horseback riding-he only hires trained, experienced people who are often certified in their area of expertise. The use of mature staff is a definite "plus factor" in Schirick's eyes: the judgment and breadth of life experience of a 25 or 30 year old individual would far outweigh that available to the average, younger counselor.
6. HOW DO YOU GO ABOUT CREATING A SAFER CAMP ENVIRONMENT?
In addition to providing a mature, qualified staff, Lee fosters a
safe camp environment by assuring that adequate numbers of staffers
are there to work with the campers. Camp Marist has a 3:1
camper/staff ratio. But beyond that, Lee assures that the people who
work with the campers during the day will be well rested.
Consequently, CIT's, counselors, and special activity people do not
spend nights with boys in cabins, but are housed separately. A
brother is assigned to each cabin to supervise the campers at night,
and the people who work with the children during the day are housed
in dormitories, with one or two people in each room. Following up on
Gentile's and Libbing's suggestions outlined above, it is important
to have policies and procedures in place, showing routine inspections
for all equipment-and then following through on those inspections to
assure that the procedures and routines are implemented. Libbing also
speaks of having adequate supervision; accidents are more likely to
happen when kids are just standing around. The better the
supervision, the less likely a child will wander off or fool around
with other children.
7. DOES ACCREDITATION COUNT?
"Absolutely," says Libbing.
"Accreditation is very, very important." He goes on to say that, if a
camp has ACA accreditation, then three-fourths of his homework is
done. Libbing places tremendous weight on a camp's accreditation
status, saying that it streamlines his paperwork process and assures
that standards are being met and monitored on a regular basis.
Although Schirick will insure camps that do not have ACA
accreditation, he says that meeting ACA standards is "a great
educational process," insofar as business and risk factors are
concerned. He finds that ACA provides a disciplined approach to risk
management; for those camps who have evaluated and acted on their
risks (per ACA guidelines), he has seen a direct impact on the
outcome of losses experienced. Dilling doesn't require accreditation,
but in assigning risk (he uses an experience type rating on the basis
of losses), the insurer "definitely knows that accredited camps are
tip-top." He cites ACA's requirement for security guard rails on top
bunks as being a simple safety requirement "that's worth something!"
One of the camps interviewed said that their insurer rarely looks at
their camp because he is not a camp specialist. However, the insurer
trusts the guidelines of ACA; as long as the camp keeps being
accredited, they'll be insured. Similarly, Gentile, who is insured by
a company that specializes in camp insurance, states that his
insurance agent takes into account if the camp director is
certified.
8. WHAT ARE THE HIGH RISK AREAS?
There seems to be a
consensus that horseback riding is the number one area of concern,
with confidence courses running second, and water activities ranking
third. The assignment of such high risk to horseback riding is a
topic that generates heated discussion among camp directors. Mike
Baer, director of French Woods in Hancock, New York, is particularly
rankled by this. His camp has not had a major claim in over 25 years,
yet his premiums have not been lowered. Because of this, he thinks
insurance is based more on potential than actual loss. Gentile agrees
with this assessment. "Horseback riding seems to be considered a
separate entity," he says. "No matter how safe it is, no matter what
precautions you take, the insurance company considers it a risk."
Many of the precautions he takes involve common sense and experience,
and he also follows ACA mandates and regulations set forth by his
local Health Department. Among other safety precautions, Gentile
employs a mature, qualified program director. He also has a
sufficient number of horses, usually twelve, so that several horses
can be resting while others are out on the trail. The typical
procedure at his camp is for five or six children to go out horseback
riding with two counselors. One counselor leads the way, and the
other counselor rides at the rear. While they are out, the remaining
horses are able to rest in their stables. Gentile also makes sure
that he follows ACA guidelines to have proper, safe equipment. This
includes having certified helmets, and making sure that children wear
heeled shoes-no sneakers! And before the children mount, they receive
a lot of training. (Generally, the children at his camp are
beginners.) There are rules and specific procedures for how the
children mount the horses, where they mount, and where they go. There
are clearly marked safe trails which the counselors check out before
going out each day. The tack room is organized so each horse's
equipment is specified and clearly marked so that the horse will be
as comfortable as possible. Gentile tries to predetermine his risks
and minimize them to the extent possible. Nonetheless, despite the
precautions and lack of claims, lowering premiums has been an uphill
battle. He says the insurance company argues that a horse is an
animal and an animal can do anything-regardless of precautions
taken-without warning.
Bunchuk's experience has been similar, but she has chosen to keep insurance for horseback riding activities separate by purchasing a multi-peril policy which covers saddle animals, and areas that may not fall under general liability and property policies (e.g., picnic area and out-buildings). Libbing agrees that you open yourself up to greater exposure when animals are introduced to a situation. No matter what precautions are taken and what controls are in place, children sometimes forget that they aren't supposed to touch the animals, and that is where many problems arise. Where proper barriers are in place, equipment is checked to assure that it isn't brittle and is well maintained, and rules and regulations are in place and followed, there is usually no problem. It is not the horses, but horseplay that is more likely to cause accidents. Once again, proper supervision is key. Dilling's concerns center around the trust/fall aspect of confidence courses. He sees this area as one that is open to charges of negligence; he points out that it is not unusual to have two hundred pound campers going on confidence courses. It doesn't matter if the camp or activity director has taken the precaution of hiring an expert to run the course, and properly maintains all of the ropes and special equipment used. If you wind up having a one hundred-thirty pound person catching a two hundred pound camper, you've got a problem. In this situation, there is no need to look to charts to determine statistical probability. This type of risk management demands that the camp director exercise common sense and good judgment. For this and other high risk activities, Dilling endorses Bunchuk's practice of obtaining special policies. Beyond his misgivings about confidence courses, Dilling, like Libbing and Schirick, says that accidents don't necessarily occur where you might expect them to, or in areas where an inherent risk may exist. He points to the area of rifle ranges, where you may expect claims. Nonetheless, in the last five years, he hasn't had a single claim involving a rifle-but he has had plenty of claims where campers have tripped and fallen on their way to the rifle range, or tripping over a horse tackle, or the ropes used for confidence courses!
This has also been the situation at French Woods. Mike Baer says that his camp's circus activities, where you might expect to find great risk, is probably the safest area because the greatest precautions are taken here. "You're more prepared for problems," he says. He points out that all circus acts at his camp use guide lines and wires. This includes the single and double flying trapeze, the high wire (that's 20 feet off the ground), and the Lyra Act (which is a huge silver ring to hang from), among others. Baer points out that, when he and his partner were setting up the circus program, they were among the first to teach circus skills, and had to demonstrate the safety precautions they were instituting to insurance companies. They relied on common sense, rather than charts and statistics to determine what to use to be safe. Insofar as waterfront activities are concerned, insurers seem to find that precautions can be made to minimize risk. The use of PFD's, properly maintained boats, and employment of a sufficient number of lifeguards go a long way in keeping swimming from being a high risk area. Still, many camp directors agree with Bunchuk when she says that the pool area is her number one concern, and Schirick maintains that due to the frequency of exposure-most camps have hundreds of campers who swim at least once a day-aquatics and horseback riding are on a par as far as risk is concerned. Both, he says, offer the opportunity for unexpected events.
9. WHY IS IT DIFFICULT TO LOWER PREMIUMS?
Like any other
company, insurers are facing increases in health and legal costs as
well as feeling the inflationary pinch. Today's litigious society
produces more claims to defend. The severity of claims and damages
sought are both on the rise. Finally, one area that was traditionally
not an issue, but is given more weight recently, is insuring against
charges of child abuse. If good hiring and supervisory procedures and
controls are in place, the operator of a camp involved in a child
abuse situation would be covered under their liability policy or
umbrella policy. (However, since the perpetrator's actions were
intentional, he/she would not be covered.)
10. SHOULD CAMPS CONTRACT OUT FOR SOME HIGH RISK
ACTIVITIES?
Schirick and Libbing suggest that camps subcontract
any high risk activity area they do not have expertise in. No one
will insure you if there is a lack of proper training. In order to
assure that adequate safeguards are in place, Libbing's company sends
out loss control surveyors to assess competence. Typical areas where
camps contract out are wilderness training, white water rafting,
mountaineering, confidence courses, and horseback riding. The bottom
line is that camping, like insurance, is a business-and in order to
run it profitably, camp directors must explore every avenue to lower
insurance costs while covering all bases. Working in tandem, camp
directors and insurance agents can assure that camps can be safe,
fun,-and profitable. Please be sure to discuss any issues, ideas or
suggestions presented in this article with your insurance agent in
order to determine how they might impact on your facility.
