Let’s talk money.
Two big changes coming up next year will impact every registered Scout unit:
- What is now known as the “unit charter fee” will change its name to the more-descriptive “unit liability insurance fee.”
- The cost of this fee will increase from $20 a year to $40 a year. This fee is per unit, not per individual.
Every Scout unit — packs, troops, teams, crews, ships, and posts — must pay the fee each year, and every penny of this fee goes into the general liability insurance program, providing coverage for claims alleging negligent actions that result in either personal injury or property damage.
Note that the annual registration fee for individuals isn’t changing — it remains $15.
Find answers to your important questions after the jump…
When will this take effect?
The new fee begins with units that have Dec. 31, 2012, charter expiration dates — a charter period beginning Jan. 1, 2013.
Why is this happening?
The BSA cites these reasons:
- The reserves for open claims have increased significantly over the past several years.
- The average cost per claim has nearly doubled in the past five years.
- Claims payments have doubled in the past two years, compared with a five-year average from 2005–2009.
What’s covered by insurance?
The general liability insurance policy provides primary liability insurance coverage for registered adults and for all chartered organizations on file with the BSA for liability arising out of their chartering a traditional Scouting unit. This policy provides coverage for claims alleging negligent actions that result in either personal injury or property damage.
What isn’t covered?
There is no coverage for those who commit intentional or criminal acts. Liability insurance is purchased to provide financial protection in the event of accidents or injury that occur during an official Scouting activity.
What is a chartered organization?
A chartered organization is an organization that has applied for and received a current Boy Scouts of America charter to operate a Scouting unit. A chartered organization as defined within the policy shall include the chartered organization, its board of directors and/or trustees, and its officer and employees, in their official and individual capacities. This definition also includes a specific position: chartered organization representative.
Chartered organizations do not need a certificate of insurance. The chartered organization endorsement is a part of the insurance policy contract and is enforceable under the policy contract. Old Republic Insurance Company provides the first $1 million in coverage. Additional policies—all providing primary coverage to the chartered organization—have been purchased so that more than $5 million in primary coverage is provided.
What do you think?
How will this change affect your unit? Leave some thoughts below.
(h/t Scout Wire)