Metropolitan Tikhon with, from left, Daniel Herzak, Michael Herzak Sr., and Michael Herzak Jr.
Michael Herzak of Insurance Systems Group, Inc., and his two sons recently presented a check for $50,651.00 to His Beatitude, Metropolitan Tikhon, the result of a special Loss Control Benefit representing reduced claims and losses among those parishes and institutions that participate in the voluntary Orthodox Church in America Group Insurance Program.
Over the past three years, the GAP Rewards have returned just shy of $115,000.00 to member parishes.
“In 2006, the Orthodox Church in America established a voluntary, optional Group Affiliation Program [GAP] offered through Insurance Systems Group, Inc. with GuideOne Insurance Company to be able to offer a special insurance benefit to OCA parishes, institutions and organizations,” explained Mr. Herzak. “Among many other benefits, it provides a Loss Control Bonus for reduced claims and losses within the group. When member churches work together to prevent and reduce losses, they can earn this Loss Control Bonus.”
When the program was established, the OCA made the decision to distribute back the bonus to the participating parishes and institutions.
“This year the loss ratio for the group was 14%, well under the required maximum loss ratio limit for a bonus,” Mr. Herzak continued. “Consequently, one hundred and seventeen parishes and several institutions have shared proportionately in the bonus check. The proportion is based on the parish or institution’s premium compared to the GAP premium as a whole.”
The GAP also includes coverages such as a property coverage enhancement that gives 25% more coverage subject to a $1,000,000.00 maximum at no additional charge, broad coverage for iconography, sexual molestation, directors’ and officers’ (trustees’) coverage and more.
“This is the fourth time such a bonus has been distributed, but has increased 38% from last year’s and is up 65% from the year previous to that.” Mr. Herzak added. “This means that member parishes have done an incredible job of controlling their claims and losses. When they do, everyone in the group benefits.”
Insurance Systems Group, Inc. is a premier broker of property and casualty insurance to Orthodox churches of all jurisdictions in the US. Principals Michael G. “Mickey” Herzak, Michael G. Herzak, II and Daniel C. Herzak are unique in that they are Orthodox Christians who understand both the distinctive attributes of Orthodox churches and the coverage ramifications of insurance. They can be contacted at 800-860-3075 or through their web site.
GuideOne Insurance of West Des Moines, IA, is the largest writer of churches and related institutions in the country. They have been “A” rated by A. M. Best Co. Over the years GuideOne has paid out millions of dollars for OCA parish claims.