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March 7, 2008

 

To:       BHVA Residents and Owners

 

From:   BHVA Board of Directors

 

Subject: Explanation of insurance requirements that were approved in 2005

 

It has been brought to our attention by a few residents that everyone was not aware of the insurance requirements or the logic behind them.

 

They were formed by the Environmental Committee in the spring of 2005, approved by the Board of Directors in July 2005 and approved at the Annual meeting in October 2005.

 

In summary there had been many claims paid that should not have been paid and should not have been BHVA’s responsibility.  Consequently, insurance was difficult to obtain.  At the advice of our Risk Manager and Attorney, the requirements were set forth.  As a result we reduced our insurance costs considerably. 

 

The process and logic is as follows:

 

1.                  All work done within BHVA property has a liability risk associated with it.

2.                  To reduce BHVA exposure we had to make sure all contractors, large and small, are properly insured. (“This would not apply to house cleaning, dog walking, many small interior jobs of a similar nature, Wherein exposure to BHVA is Negligible”)

3.                  By requiring Insurance Certificates, Worker’s Compensation when necessary and having BHVA named as an additional insured, the risk of loss is substantially transferred to the contractor.

4.                  This transfer of risk is what has reduced our insurance premiums.

5.                  We have required a minimum of $1 million dollars for general and auto liability. We realize this is an arbitrary figure but is with the advice of our insurance agent and attorney.  One resident feels we should have a minimum of $2 million dollars because of excessive lawsuits in our country. 

 

The above process has saved all residents thousands of dollars.  Over 90 % of our contractors are in compliance and have complied very willingly as responsible business people that are very familiar with the request, as are their insurance companies.  It is an accepted part of business expenses and benefits them, as well as BHVA..

 

Please feel free to contact us in writing with any questions or concerns you may have.

 

Sincerely,

 

The BHVA
Board of Directors