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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 partially funded by the California Department of Food and Agriculture's Division of Fairs and
Expositions, and offered exclusively to California's fairs. Fair premiums, based on individual fair property values and any options selected, make up the difference between the Division's contribution and the total premium cost. Applied loss modification factors will reward fairs with good loss histories, while assessing higher fees to fairs with above-average loss histories (focusing on the frequency of incidents rather than their severity).
The Division also requires all participating fairs to carry at least $100,000 of contents coverage; higher limits are available. Each fair is responsible for the cost of this additional
protection.
The Property Protection Program protects all fair buildings located at the District
Agricultural Association fairs (DAAs), the California State Fair
and Exposition, some county fairs and two citrus fruit fairs. Each
individual fair is responsible for its own per loss 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.
Deductible Buy Down Option (for real property):
Fairs have the option of reducing their program deductible for real property (buildings) from a maximum of $50,000 down to $25,000 for an additional fee.
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.
-
protect the property from further damage.
-
document the loss with photographs.
-
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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