insurance secrets
TRANSCRIPT
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Insurance Secrets for Nonprofits
What you must know before purchasing your organization’s liability insurance
Presenter:Peter Andrew, CEO,
Council Services Plus272 Broadway
Albany, NY 12204877.501.4277, Ext 125
www.councilservicesplus.com
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Liability...
When an individual (or organization) is legally responsible for damages due to negligence.
- Direct Liability- Entity is directly responsible for the failure to prevent harm
- Vicarious Liability- Entity is liable for the actions of its agents
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3 types of liability discussed today
• Liability for bodily injury or property damage
• Liability NOT resulting in BI or PD
• Liability for rendering or failure to render a professional service
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Liability for bodily injury or property damage
• Liability Insurance Products– General Liability (GL) & Property
Coverage
• Bodily Injury & Property Damage
• Personal & Advertising Injury
• Medical Payments
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Liability for bodily injury or property damage
– Certificates of Insurance Vs. Additional Insureds
• What’s the difference?
• Why are they requested?
• Keeping up with them.
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Liability for bodily injury or property damage
• Special Events Coverage– Can be covered within a GL policy or
separately
• Hired & Non-Owned Auto– Coverage for Entity– Coverage for Individuals
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Liability NOT resulting in BI or PD
• Directors & Officers Liability Insurance (D&O)– Is it required or necessary? – What’s covered
• Board Management decisions
• Employment Practices
– Exclusions
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Liability for rendering or failure to render a professional service
• Professional Liability– Health Care & Mental Health Agencies
• Malpractice
– Counseling, Referral & Educational Agencies• Errors & Omissions (E&O)
• Miscellaneous Professional Liability
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Other Types of Liability Coverage
• Crime Insurance (Employee Dishonesty)
• Sexual Misconduct (Abuse/Molestation)
• Host Liquor Liability
• Commercial Auto
• Fiduciary Liability
• Benefits Liability
• Excess and Umbrella Coverage
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Current Insurance Market for Nonprofit Organizations
• Current Insurance Market
• Sources for Insurance for Nonprofits– Social Service Agency Package
Programs/Specialty Companies– Regional/National Nonprofit Insurance
Programs– Agents/Brokers specializing in nonprofit
insurance programs
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When do you shop?
• Conditional Renewal and Non-renewal Notices– 60 Days in Advance– Be Proactive and Deliberate
• Set a consistent parameter– Price increase of more than 10%– Inability of carrier to offer proper coverage– Poor service
– Distinguish between Broker issues and Carrier issues
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Evaluating Your Current Risk Management Program
• Evaluate current insurance coverage with current broker/insurer
• Review areas of desired improvement in coverage with Board Committee
• Evaluate current Risk Management efforts
• Additional Considerations– Will you need board or committee approval?– What are your contractual obligations?
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Selecting Brokers and Insurers
• Two or three good brokers should be able to access five or six insurance companies– First send a letter/packet to express interest
• What to include?
• Insurance company procedures– 1st come, 1st served– broker of record letter– market assignments
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Underwriting information
– Application– Prior claims information
• AKA Loss Runs– 3-5 years
– Annual report/brochures– Financial statements– Copies of any policies that could pertain
• Personnel Policy
• By-laws
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Implementing New Insurance Programs
• Insurance binders
• Payment plans
• Certificates of insurance
• Review insurance policies
• Claims handling
• Risk management services
Thank you!!