2016 General Meeting/Vote on Liability and D&O Insurance

2016 General Meeting/Vote on Liability and D&O Insurance Print

Please attend a general meeting of Surfside Tennis Club at 1:00 PM after Saturday play on July 9, 2016, in the Community Room of Morro Shores Mobile Home Park located at 633 Ramona Avenue in Los Osos.

The purpose of this general meeting is to discuss and vote to authorize (YES or NO) expenditures of up to $1100 to purchase General Liability and Directors and Officers Liability insurance for the upcoming fiscal year.

Liability insurance has been a business item on your Board’s meeting agenda since January 2016.  Taking into consideration the controversial discussions that have occurred among many members, the Board held a special meeting on June 13 and recommended insurance purchase.  Our Bylaws in Article VI.5 require  “Expenses above $500 must receive approval of the majority of members attending a general meeting that has been announced two weeks in advance via mail or email.”  Please consider the following issues in preparation for the meeting:

·       Surfside’s treasury balance is adequate to fund the purchase of these policies, therefore NO INCREASE IN DUES WILL OCCUR THIS (2016-2017) FISCAL YEAR, regardless of whether or not a decision is made to obtain insurance.

·       We are in violation of a San Luis Coastal Unified School District policy that requires organizations holding events on their facilities to carry liability insurance.  (Note: From 2003 to 2006 Surfside was required to obtain such coverage for our CCWTL players using the MBHS courts.  When the rates were increased the club discontinued coverage and switched venues for hosting CCWTL competition.  Ironically, a recent review of the old policy revealed that  “Athletics Activities” injuries were excluded).

·       Legal precedence allows lawsuits claiming negligence to seek monetary compensation from the assets of the organization and the personal assets of Board members.  Once a lawsuit is filed, no matter how frivolous, each Board member would have to pay to retain legal counsel.  Legal representation is provided by a D&O policy in addition to $1million coverage.  As we already have considerable difficulty convincing members to serve as officers, we must ask ourselves if it is “fair” to expect volunteer Board members who already sacrifice time to serve Surfside to also put their personal resources at risk?

·       Release Agreements or Waivers of Responsibility will likely be incorporated on future Surfside membership applications.  However, this does not really provide legal protection against lawsuits from injured parties or their heirs.  The application will likely also seek verification of personal health insurance coverage.

·       Some members opposed to paying premiums have suggested dissolving the official club and becoming an informal group that plays tennis on Saturdays.  While considering the positives of liability coverage, the Board discussed the benefits we have as a recognized association, such as organized Saturday play, maintained courts, tournaments, social events, and MBHS Tennis support.  These pluses could be altered or lost if we disband or cannot find members willing to serve as officers.

Carl Pherson - President

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