Meeting #4

Post date: Jul 22, 2016 8:11:41 PM

Meeting Notes from the Folk Project Workers Comp Commission

July 21, 2016 (7:30 to 8:15); 25 Center Avenue, Morristown, New Jersey

Present (Committee Members): Lori Falco, Chris Riemer (Scribe), Barrett Wilson (Chair)

Present (Guests): Mike Agranoff

Absent (Committee Members): Elizabeth Lachowicz, George Otto

Introduction

Barrett thanked eveyone for coming, noting that he had gotten a note from Elizabeth regarding her absence tonght. (We were expecting George, and gave him a call around 7:55. He had the time wrong in his calendar, but by then we were so close to wrapping up that we let him off the hook.) Barrett admitted to being "bone tired' with these insurance conversations, and was sorry that we hadn't managed to come to genuinely firm conclusion. Considering all the time we've put in, both in meetings and in between, it's sad that the situation remains "murky and muddy." But he doesn't think working harder or longer is going to change anything.

Chris mentioned the email he sent earlier today, seconding Christine DeLeon's recommendation that we sign up for a Directors & Officers insurance policy before we make any decisions regarding Workers Comp. He doesn't think we need to wait on getting legal advice, but he does think the board shouldn't be asked to vote until both elements are in place: a legal opinion that is firmly on our side and a D&O policy (which would be sensible in any case). Barrett tends to agree, noting that in his conversations with the Pro Bono folks, his contact said she'd never sit on a board that didn't provide D&O coverage.

Legal Advice

Despite several attempts, Barrett has not been able to get our WC expert attorney on the phone, since his initial conversation back in May.

He's now leaning toward falling back on email, since the question is really pretty simple. In his opinion, do we need to provide WC coverage for our performers under New Jersey law? It's a yes-or-no question, and if his response is in any way equivocal, that's the end of the story. The board will never vote to drop the coverage without a strongly-worded legal defense.

Barrett also reminded everyone that we already DO have a legal opinion, rendered by the Pro Bono folks nine years ago. They felt we should carry Workers Comp. And while they may have been motivated by an abundance of caution, we need to resist the temptation to pretend that recommendation doesn't exist. Chris added that while he personally feels we're paying for something we don't need (and aware that the carrier might deny a claim in the event we wanted to make one), we may just be stuck with the situation. He wishes we had never gone down this road, but backing up may be politically impossible. At least we can afford it.

Buying Insurance

Lori wondered if we should ask Liberty Mutual for a quote on a D&O policy, but Chris thought we might be better served by looking for an agent with non-profit experience. He remembers working for a video production company back in the 90s, and sitting in on meetings where an agent laid out a whole portfolio of coverage recommendations. We would be well served by that kind of big-picture approach. Our attempts to tap this kind of expertise from friends and family has gone nowhere, so maybe we need to look further afield. Mike suggested Eitan Grunwald as a possible advisor, since he has spent a good part of his working life in the non-proft sector. Lori also mentioned Mike Del Vecchio, since she knows he was involved in buying D&O insurance for his railroad club. She will check with him, and Chris will drop a note to Eitan.

Chris recalled that the D&O question has come up a couple of times over the years, at least once when he was president. He contacted our agent at the time, and was advised that it was something we didn't need to worry about. However, given a number of costly (if low profile) errors and omissions that have surfaced since then, he now thinks it would be a good idea. The board is sadly deficient when it comes to oversight, and it has cost us in various fines and penalties. Lori agreed, mentioning the "hold harmless" clauses that are part of the paperwork everyone is supposed to sign at Camp Bernie. If (in fact) that would insulate the camp from any liability claims, it would put The Folk Project squarely in the cross-hairs. That makes her uncomfortable.

Barrett agrees that the Directors may not really appreciate the responsibility they accept when joining the Board, nor do they understand the implications of a D&O policy. So we may need to educate them.

Wrapping Up

Mike felt that our next step should be to recommend the D&O policy, but hold off on a WC final report until we hear from our expert. Hopefully, this can be our final meeting, since whatever business still needs consideration can probably be handled via email.