Initiation fee insurance unveiled
ST. LOUIS, Mo. – Owners & Members National Insurance Services has unveiled new insurance coverage that enables club members to recover a portion of the initiation fee paid for their membership if they resign from the club and move out of the area. The coverage, called initiation fee insurance, is underwritten by the Chubb Group of Insurance Companies.
“This insurance is designed to overcome a commonly-heard objection to buying club memberships – that a member may have to resign and lose the initiation fee due to a job transfer,” said Fonda Hereford of Owners & Members. “Under this program, if the member has to resign because of a need to relocate their principal residence more than 150 miles, the insurance allows the member to recover all or a portion of the initiation fee.”
The company said the program is aimed at helping clubs that have a significant amount of corporately mobile members increase sales and value by overcoming the objection to initiation fees.
Owners, developers or management companies of private clubs purchase the insurance. The policy may be issued for a period of up to nine years, including a one-year deductible period for new members and a two-year deductible period for existing members. Reimbursement will vary by policy and the club owner offers the refund to its departing members.
Copyright United Publications, Inc. Jan 2002
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