IMBA's national insurance policy for chapters and supporting organizations will cease coverage at the end of this month.
We are in the process of negotiating replacement insurance.
IMBA's current general liability insurance program is no longer viable and will cease to operate after February 28, 2014.
After more than six months of shopping and two policy extensions, our broker Marsh MacLennan (formerly RJF Insurance Agencies) has not found a new underwriter willing to insure the program under similar terms and cost.
As of today, only one viable underwriter is willing to price our policy, and with rates that will jump from the current average of $8 to $10 per member, to $16 to $18 per member.
We know many clubs and chapters will not be able to pay their share of such an increased premium.
IMBA can not afford to fund the difference of a $400,000 premium, less the amount reimbursed from clubs and chapters, that would likely be $200,000.
The cessation of the current policy does not mean that IMBA will not offer a new national general liability insurance program in the future.
The challenge of having to find a new insurance underwriter two years running has revealed serious weaknesses with the current program.
We need a new, restructured approach to our collective shared-risk management, including a viable national liability insurance program.
There are options for coverage that IMBA is pursuing aggressively—we need more time to explore and negotiate these. Our goal is a national policy that creates economies of scale and more affordable premiums.
For more details, read this Insurance FAQ. If you have additional concerns or can offer professional insurance advice, please contact your IMBA Regional Director or email IMBA.
We regret the timing and we appreciate the implications of the situation.
We will continue to update chapters and supporting organizations with advice on next steps. Thank you for your understanding and patience.
Michael Van Abel