Risk Management Issues

Costello Discusses the Constant Struggle to Keep Moose Insurance Affordable

Director of Risk Management Brad Costello

> Reducing Lodge insurance costs is a constant struggle, and Moose International Director of Risk Management Brad Costello discussed a number of ways to help reduce those costs when he addressed Saturday’s Supreme Lodge General Session in the Peabody Hotel’s ballroom.

Costello shared the details of changes in the fraternity’s risk pool program. “For many years, we have been able to avoid harsh market conditions by utilizing the risk pool,” Costello said. “Unfortunately, even the risk pool has limitations and we have had to make concessions in order to continue our Lodge business operations.”

Costello said one of the reasons insurance rates have increased is late reporting of incidents.

Costello said all insurance companies have the same rule on incident reporing: “You must see to it that we are notified as soon as practicable of an occurance or an offense which may result in a claim.”

Failure to follow this one rule can be very costly, Costello said.

The high number of liquor-related claims continue to be worrisome, Costello said.

In any case where reporting an incident is necessary, Costello said the Administrator needs to call 1-800-544-4407 from 8 a.m.-4:45 p.m CT Monday-Friday. (That same number can be used as a resource to reach someone who can help answer insurance and risk-management-related questions.) This must be done so accurate records can be kept at Moose International, which must disclose incidents to insurance carriers.

Alcohol servers must be certified either through the TIPS program or another certified program recognized by the Lodge’s state. Recertification must be done every three years. Costello urged officers to attend training, even if they are not required to attend.

Costello said a booklet covering various options for commercial property insurance, required of all Lodges that own buildings, is available at: www.mooseintl.org in the Risk Management section.

The full text of Costello’s remarks can be found at: www.mooseintl.org/ portal/Convention/2007Orlando/pdf/
RiskManagementReport.pdf.