'There's a lot of risk'

POST FALLS — The Community Library Network may not have liability insurance coverage as early as Sunday.

Trustees considered their options during a meeting Wednesday, including the possibility of a 24-hour emergency notice to close all libraries in the district if insurance is not in place by the time the library network’s existing policy through the Idaho Counties Risk Management Program expires at midnight Saturday.

“There’s a lot of risk,” Community Library Director Alexa Eccles said during the meeting.

The library network’s insurance troubles began in August when ICRMP, citing “increasing risk exposures,” notified the CLN board of trustees that it was making significant reductions to the library network’s coverage beginning Oct. 1. Those changes include removing employment practices liability coverage and reductions of per claim limits for other types of coverage from $3 million or $2 million to $500,000.

The board voted Sept. 21 to appeal the ICRMP coverage decision and directed Eccles to contact other insurance companies, namely Marsh McLennan (formerly PayneWest) and Redman Insurance for other quotes.

The board’s legal counsel, D. Colton Boyles, urged the board to not allow its insurance coverage to lapse, as that may deter potential providers from doing business.

“My recommendation remains that we bind coverage before our coverage expires,” Boyles said.

He said a representative from Redman Insurance conveyed that Travelers Insurance declined to provide the network with coverage and that another company, Apex Insurance, is still shopping for additional quotes.

“They haven’t given me a timeline,” he said. “We’ll get word back this week or Monday.”

Eccles warned it would take time to gather other quotes, as it is a time-consuming process requiring work from agents and underwriters.

“I just checked three minutes ago. I have not received anything via email,” Eccles said at the start of Wednesday’s meeting.

She said she spoke with a broker Tuesday and was informed of continuing follow-up questions. She said PayneWest was anticipating having more information today.

“One of the quotes is likely to come in very near in price to what we were quoted with ICRMP for full coverage,” Eccles said. “I would characterize that as an exciting possibility.”

She said an extension via ICRMP is not optional.

Trustee Tom Hanley said he would not be comfortable signing up for reduced coverage from ICRMP without at least one alternate offer.

“If we don’t have at least two options to look at, I prefer to let the coverage lapse, close the library on Sunday and leave it closed on Monday until we can discuss this and make a decision,” Hanley said.

Eccles said she is open to any quote that best meets the network’s requirements.

“I feel comfortable reviewing whatever we get as late as possible and giving people as much possible time and offering the board that as an option so that we don’t lose coverage,” she said. “I’m concerned by what the board is discussing just from a risk standpoint.”

Trustee Tim Plass called for two more special meetings — today at 5 p.m. and Friday at 1 p.m. — just in case more insurance quotes come in, despite the fact that Trustees Katie Blank and Vanessa Robinson have conflicting schedules and Eccles and the assistant director Lindsey Miller-Escarfuller will also be unable to attend in person. Today’s meeting may be canceled if no other insurance quotes are obtained by 1 p.m.

Robinson referred to Boyles’ recommendation to not let the insurance lapse and asked his reasoning. He said, typically, policies only cover an occurrence that happens within the coverage period.

“If our insurance policy lapses and an event does happen that would otherwise be covered Sunday, Monday, Tuesday, the insurer will likely know about that before we buy any additional coverage and they could deny us a retroactive, a gap,” he said. “Certainly, I am not qualified or authorized to make that decision. I think the board, with the advice of the director, can make that type of a risk decision using their best business judgment."

“In this case, we recommended to get two or three quotes, so that way you’re exercising that sound business judgment rule,” he continued. "If that’s not practically available, then that would alleviate your liability to not consider those additional options. At that point, you’re just making the decision based upon the best information you have.”

Robinson pointed out that even if the libraries are closed, something could still happen on the premises. Someone could get hurt trying to break in and sue, or drive into the building and cause damage.

“Even if the buildings are closed down and they’re empty, there could still be liability, is that correct?” Robinson asked Boyles.

“There’s always liability,” Boyles said.

The Post Falls Library is at 821 N. Spokane St., Post Falls.

Visit communitylibrary.net for meeting information, trustee contacts and more.