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ASAE Services Corporation modifies insurance program.

ASAE Services Corporation Modifies Insurance Program

A modification to a program administered by the ASAE Services Corporation now enables association management companies to receive substantial discounts on their association professional liability insurance (APLI) rates. ASAE only endorses the APLI insurance program offered by CNA Insurance Companies, Chicago.

According to Chester Merritt, director of the ASAE Services Corporation, ASAE has identified 424 association management companies that, on the average, manage approximately five associations each. Merritt says the average managed association has an annual budget of $400,000-$500,000.

"Associations run by management companies--by having the same professional administrative staff--do not have the same level of exposure that would exist if each had separate administrative staffs," he explains. "And one of the missions of the Services Corporation is to make sure that all associations, including associations run by management companies, are being charged a fair price for their insurance programs."

Here are some of the highlights of the program:

* An association-management-company-run association with annual revenues exceeding $700,000 will receive a 40 percent discount on its APLI rates. An association that is run by an association management company and has annual revenues of $700,000 or less will receive a 45 percent discount on its APLI rates. In addition to the 45 percent discount, an association that is run by a management company and has annual revenues at the lower end of the revenue scale may qualify for an additional 5 percent discount on its APLI rates. * The association management company must purchase coverage for each association managed.

Insurance will be one focus of a seminar entitled "Association Management Companies Invitational Forum," which will be held August 11, from 9 a.m. to noon at the Ramada Renaissance/Techworld during ASAE's 71st Annual Meeting & Exposition.

For information, call Cindy Fellows at ASAE at (202) 626-2755. For information on the new insurance discount, call the ASAE Services Corporation at (202) 626-2836.
COPYRIGHT 1991 American Society of Association Executives
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Association Management
Article Type:Brief Article
Date:Aug 1, 1991
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