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Faced with the possibility of a 127 percent price increase to renew
expiring commercial property insurance policies (with reduced coverages)
in 2002, California Fair Services Authority (CFSA) and the Division
of Fairs and Expositions (the Division) came up with a more cost-effective,
benefit-rich alternative: the Pooled Property Protection Program.
California Fair Services Authority (CFSA) administers the Pooled
Property Protection Program, which was initially partially funded by the California Department of Food and Agriculture's Division of Fairs & Expositions. Beginning in fiscal year 2011-2012, the program will be supported instead by a combination of pool reserves and participating fair premiums (based on each fair's individual property values).
To minimize the pool's risk exposure, the minimum deductible for all fairs increased from $25,000 to $50,000. Another change implemented in mid-2011 moved the billing cycle from January to July.
Program options include:
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Personal Property/Contents coverage for items such as furniture and computers, and comes with a $50,000 deductible. All fairs are encouraged to carry at least $100,000 of contents coverage, with higher limits available.
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Contractors and Mobile Equipment coverage for all fair owned and leased tractors, fork lifts, mowers, unlicensed trucks and other construction equipment. The cost for this coverage is the same as for the Personal Property/Contents coverage, with a $100,000 minimum and a $50,000 deductible.
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Business Interruptions/Rents covers loss of rental income if a covered building can't be rented due to physical damage. The Rents portion of the coverage covers any loan payments on damaged property that can't be rented out. This option also costs the same as the Personal Property/Contents coverage and has a $50,000 deductible.
Participation in the program is voluntary; however, the Division of Fairs and Expositions requires all non- participating fairs to show proof of insurance equal to the pooled Property Program's coverage. Fairs not participating in the program are ineligible for assistance with deductibles associated with commercial policies purchased by the fairs on their own behalf.
For program details, please read its Memorandum of Coverage (MOC) and Protection Schedule online or in your Red Book (Claims and Loss Reporting Guide), under General Liability, Tab 6.
Note: To access the online copy you need Adobe Acrobat Reader on your computer. If you don't already have it, download it for free from the Adobe Web site: www.adobe.com/products/acrobat/readstep2.html.
In the event of a loss:
- notify
CFSA immediately by phone, (916) 921-2213.
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protect the property from further damage.
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document the loss with photographs.
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document extra (over and above normal) expenses paid to protect
the damaged property.
For questions, or to file a claim, contact Charlie
Mitchell or Lianne
Lewellen.
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