Managing and Protecting your Most Valuable Assets Abroad

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Managing and Protecting your Most Valuable
Assets Abroad

• Elizabeth Demaret and Bill Powell
• CACUBO 2007 Annual Convention
• October 9, 2007

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Agenda

• Background/Trends
• Protecting Your Assets Overseas
• Claims
• Case Studies
• Insurance Related and What is Risk Management?
• Risks Coverages to Consider
• International Outlook What Is On The Horizon?

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What are Your Most Valuable Assets?

• Students
• Faculty
• Property
• Reputation

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The Challenges
The Academics aka Herding Cats
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The Challenges
The Administration
6
The Challenges
Helicopter Parents
7
The Challenges
The Students
Are Doing What?? Where??
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Trends 10-Year National Growth in Study Abroad
144 increase in the last decade
YOY Change
SOURCE Open Doors, Institute of International
Education, 2004/2005. http//opendoors.iienetwork.
org
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Study Abroad Destinations
2004/05
SOURCE Open Doors, Institute of International
Education http//opendoors.iienetwork.org
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Trends Leading 20 Destinations of U.S. Study
Abroad, 2003/04 2004/05
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Protection Action Items

• Prevention, Prevention, Prevention
• Student orientation and re-entry support
• Hold Harmless Agreements/Acknowledgement of Risk
• Written academic standards
• Background Checks/Screening-Homestay Families
• Rigorous student assessment program evaluation
• Selection of faculty and student participants
• Clear codes of conduct
• Outsource to reputable providers
• Crisis Management/Business continuity

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Protection Action Items

• Evacuation plans (in-country and out of country)
• Formulate a Crisis Management Team (CMT)
• Conduct regular drills overseas and with CMT
• Conduct periodic risk assessment audits overseas
• Purchase adequate insurance, including KR
• Conduct periodic insurance audits
• Install fire and carbon monoxide safety equipment
  in overseas offices and student housing

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Types of Incidents Risks

• Crime (rape, robbery, sexual harassment, assault)
• Student Health issues
• Accidents (auto and other)
• Fire
• Acts of nature
• Financial (currency, inflation)
• Civil unrest
• University strikes
• Cross-cultural issues
• Different legal systems

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Case Study 1

• University/College has bricks and mortar in
  France. They lease dormitory space as well as
  use Home Stay options with local families.
• Unique Exposures
• Your student destroys a dorm room.
• Home Stay Family Damage
• Student damages locks by breaking off key.
• Student leaves a candle burning and damages
  furniture
• Student is attacked by familys son OR Student
  attacks family daughter

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What Is Insurance and What Is Risk Management?
Case Study 1

• INSURANCE
• Property and Liability insurance on local
  operations admitted cover or non-admitted
  cover?
• Tenants Neighbours Insured on a first party
  basis. What is your legal responsibility to the
  local Institution?
• Home Stay Family Damage
• Damage to locks
• Damage to furniture
• Bodily Injury to either family member or student

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What Is Insurance and What Is Risk Management?
Case Study 1

• RISK MANAGEMENT
• Releases signed by students regarding damage to
  others personal property?
• Background investigations of home stay families
  and ALL people living at the home.
• Know your country privacy laws.
• Personal Conduct Agreements?
• Personal Insurances Does Mom Dads policy
  cover worldwide?

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Case Study 2

• University/College co-sponsors a program with
  foreign institution. Students attend the local
  university using their dormitories, student
  facilities, faculty, etc.
• Unique Exposures
• Your student sets the chemistry lab on fire.
  Burns it to the ground.
• Your student is discriminated against by the
  professor locally.
• Your student falls out of a dormitory window when
  the screen breaks.

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What Is Insurance and What Is Risk Management?
Case Study 2

• INSURANCE
• Property and Liability insurance on local
  operations does the local institution include
  you? Do they cover worldwide suits?
• Employment Practices Liability (EPLI) Does the
  Local Institution Cover EPLI? Is the action
  actually illegal?
• What does the local insurance say as respects
  liability issues?

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What Is Insurance and What Is Risk Management?
Case Study 2

• RISK MANAGEMENT
• Have you done a safety/risk assessment of local
  institutions?
• Have you got a signed agreement regarding your
  discrimation/harassment policies?
• Where does your student think they are?

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Case Study 3

• Your Foreign Language Department head is
  sponsoring a trip to Germany for an immersion
  study over Summer Break. There is no formal
  schooling, they will be studying cultural
  landmarks. Students will be traveling by charter
  bus and staying in prearranged hotels. All meals
  are included in the trip cost.
• Unique Exposures
• Students and Professor decide to bungee jump in
  the Black Forest.
• Bier Gartens are the highlight of the cultural
  tour even for underage students.
• Charter Bus crashes and students have major
  injuries.

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What Is Insurance and What Is Risk Management?
Case Study 3

• INSURANCE
• Property Damage Insurance for hotels, hostels
• Motor Insurance for Vehicles Charter or Not
• Employment Practices Liability Has your
  professor been trained?

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What Is Insurance and What Is Risk Management?
Case Study 3

• RISK MANAGEMENT
• Have you done a safety/risk assessment of local
  charter operation?
• Have you got a signed agreement regarding your
  discrimation/harassment policies?
• Have you trained your faculty on tour
  responsibilities?
• Hold Harmless for Extra-Curricular?
• Safety Procedures for Emergencies?

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Risks Coverages to Consider

• Insurance
• General Liability
• Property
• Workers Compensation
• Motor
• Travel Accident
• Repatriation
• Cancellation
• Health Insurance
• Other

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Key Coverage Issues

• Worldwide Suits including the US
• Worldwide Suits
• Injury to Participants
• Participants Liability
• Third Party Damage
• Admitted or Non-Admitted (Taxes, Fines)
• Local Covers for Partners

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Coverages The Players

• United Educators
• AIG
• ACE
• Chubb
• Travelers
• Zurich

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International Outlook What Is On The Horizon?

• Social Security Changes Worldwide
• Bio/Chemical Hazards
• Pandemics
• VISA Processes

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Resources

• Institute for the International Education of
  Students (IES)
• IES MAP (www.iesabroad.org)
• Forum on Education Abroad (www.forumea.org)
• Lincoln Congressional Commission
• (www.lincolncommission.org)
• NAFSA (www.nafsa.org)
• State Department Warnings (www.travel.state.gov)
• United Educators (www.ue.org)