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California Fair Services Authority (CFSA) administers a Revenue
Protection Program, which reimburses participating fairs for certain
revenue interruption losses from a segregated risk pooling arrangement.
This program was initially funded by the California Department of
Food and Agriculture.
The "Memorandum Describing the Revenue Protection Program Administered
by the California Fair Services Authority" should be used to determine
the actual protections, maximum limits, conditions, limitations
and definitions for the Program. A copy of this Memorandum is available online or in
your fair's Red Book (Claims and Loss Reporting Guide) under General Liability, Tab 5.
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.
If you have specific questions regarding the Revenue Protection
Program, please contact Rick
Wood.
Program highlights:
- Protection
is available for loss of fairtime or covered interim event revenue
as well as extra expenses resulting from an interruption of a
fair's business caused by an "occurrence." This occurrence could
be an accidental loss of or damage to property; earthquake; flood;
climate conditions, such as rain, sleet or snow; excessive heat;
unhealthy air quality; riot or civil commotion.
- Fair
selects limits of protection from $50,000 to $500,000 for events
with a three-year revenue history for a fixed fee based on the
maximum limit of protection selected.
-
Protection is now available for events with one or two years of
revenue history for a higher fee and reduced limits of protection.
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All decisions on claims are made by the Program Claims Committee,
which includes two fair industry representatives.
-
For each approved claim, the Program pays 80 percent of the total
approved loss up to the limits of protection purchased for an
event with at least a three-year revenue history on the same dates.
The percentage paid is reduced to 70 percent for events with less
than a three-year revenue history on the same dates.
-
The protection is in excess over any other available insurance
or self-insurance.
- Participation
in the Program is voluntary.
-
Fair pays fees for covered events during the first 90 days of
the annual protection period beginning January 1 of each year.
For events occurring within the first 90 days, fees must be paid
within 30 days of the event. Fees are non-refundable.
- There
is a two-year waiting period for re-entry if a fair withdraws
from the Program; there are special provisions for re-entry after
one year from withdrawal.
-
An excess policy provides $1,000,000 in protection for all fairs
when claims in a year exceed $600,000.
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