Archive for Nonprofits & Social Services
Adoption agencies are usually nonprofit organizations that function as placement resources, child placement agencies, or home study services. Many agencies are involved with both domestic and international placements but most specialize in one or the other. Services provided include both pre- and post-adoption counseling for adoptive parents, preparation for the home study process, and assistance in completing required documentation. Home study consists of a series of interviews a social worker conducts in the home. Some agencies provide care for the birth mother who gives up her baby for adoption. This coverage provides professional liability and directors and officers liability, in addition to general liability. Personal injury, libel, slander, defamation and/or discrimination coverage is also included.
Alcohol and Drug Rehabilitation Centers
Rehabilitation centers for drug and alcohol abusers provide life changing services to individuals. The service may be required as part of a court-ordered incarceration program. The service is also available to individuals who recognize addiction concerns and voluntarily enter into a treatment program. Services are provided on both an outpatient and inpatient basis. Many offer intensive in-patient services combined with outpatient follow -up services. Professional liability insurance on these establishments protects the agency or sponsoring organization and the professionals who actually provide the services. This coverage is usually combined with commercial general liability coverage and may be packaged with other needed coverages.
Animal Rescue Organizations
Animal lovers band together in groups to help animals that may otherwise be euthanized. Activities include locating the animal through contacts with municipal and county animal shelters, arranging to transport it from the shelter to the organization, and finding appropriate foster care. Other activities include evaluating temperament, basic training, and health care including treating heartworm, spay and neuter. The organization then matches the animals with an adopter for a fee. The fee is to pay the organization’s costs and expenses. The organization also accepts donations. Groups are species specific. Dog rescue organizations are often breed-specific. These organizations are volunteer operations with limited property exposures but with significant general liability, employee dishonesty, and directors and officer’s exposures. There is an automobile exposure if the organization owns autos used to transport animals. There are also non-ownership exposures when volunteers transport animals on the organization’s behalf.
An animal shelter accepts an animal that is surrendered by its owner or captured by others. It is responsible to care for that animal in a humane manner. Some shelters provide only animal sanctuary while others prepare the animal for eventual adoption. Off-premises foster care exposures exist as do off-premises events that feature the animals in order to encourage donations and/or adoptions. There is a significant volunteer exposure.
Associations Professional Liability
This insurance covers nonprofit associations professional liability exposures. The policy can include directors and officers liability that is designed specifically for nonprofit associations. The insuring agreement includes as named insureds all directors, officers, employees, committee chairpersons, and members, and any other association member while acting on the association’s behalf.
Battered Persons Facilities
These facilities offer shelter to people who are abused or battered by their spouses or significant others. Many provide respite care and provide safe housing for the victim and any children as they transition to more permanent arrangements and solutions. These shelters are usually at undisclosed secure locations. Their primary feature is lodging and board but a variety of treatment services may also be available. Off-site operations not directly affiliated with the facility often provide these services. Professional liability coverage similar to that provided to social workers may also be needed.
Churches & Religious Organizations
This class of business is usually not difficult to place and is underwritten by many standard insurers. However, certain markets specialize in providing coverage for churches. Values subject to a total loss may be high. Optional coverages available include crime, theft, directors and officers liability, and clergy professional liability. Sexual misconduct coverage because of alleged actions of clergy and certain other staff positions is often available but for sub-limits.
Clergy Professional Liability
Members of the clergy may be sued for causing emotional or physical suffering that arises from a variety of causes. While many claims for loss arise from counseling sessions, others are brought due to preaching, because of public accusations of wrongdoing, and administrative actions such as forced removal of a person from a position or a person’s total expulsion from the church. Coverage may be extended to non-clergy staff who function in church-related roles.
Community Service Agencies
Coverage is available for nonprofit community service agencies and organizations, such as senior citizens community centers, home visitation services, youth centers, and neighborhood centers. Coverages usually required include property, casualty, and professional liability coverages.
Crime/Fidelity Insurance protects businesses and Nonprofit Organizations from the financial consequences of Employee Dishonesty, Embezzlement, Theft of Property, Computer Fraud and Social Engineering.
Developmental Disabilities Facilities
There are facilities designed for individuals who have developmental and mental health disabilities. Insurance programs for these facilities provide liability coverages, including professional liability coverage for employed psychologists, social workers, nurses, and staff members. Facilities covered include group homes, halfway houses, sheltered workshops, and schools.
Directors and Officers Liability: Nonprofit Organizations
This coverage protects the nonprofit itself, its directors and officers, employees, and even committee members. Some carriers include a limited amount of this coverage as part of their package policies. Trade, fund-raising, and research organizations, churches, fraternal organizations, and other nonprofit organizations are eligible. Farm co-operatives and hospitals are difficult classes for this coverage. Some underwriting factors to consider are stability of operations, length of time in operation, and whether the organization generates enough revenue to meet its expenses. Some companies cover employment practices liability. This coverage is written by:
Emergency Service Organizations
Organizations that provide pre-hospital care, such as public and private ambulance services, fire departments, first-aid teams, rescue squads, and first responders are eligible for coverage under specialty programs. Such programs provide professional liability, auto liability, auto physical damage, inland marine, commercial general liability, umbrella liability, directors and officers liability, workers compensation, and employers’ liability coverages. Coverage on real and personal property and group hospitalization and accidental death and dismemberment/medical expense coverage/disability income coverage for volunteers is also available.
Nonprofit fraternal organizations and civic clubs may be insured for their property, liability, and D&O exposures. Examples are the American Legion, Veterans of Foreign Wars, Knights of Columbus, Elks, Moose, and Kiwanis. Employment-related practices liability and liquor liability are optional coverages that also are available.
Nonprofit agencies or community service organizations usually operate halfway houses. Both property and general liability coverage is available. Examples of such houses include drug and alcohol rehabilitation facilities; battered women and abused children shelters; and homes for mentally handicapped adults. Professional liability coverage is also available. Halfway houses for paroled ex-criminal offenders are very difficult to place.
Home Health Care Agencies
Insurance programs for home health care agencies are available to hospitals, social service associations, and labor unions as well as independent home healthcare agencies. Coverages provided usually include general liability, personal injury liability, non-owned auto liability, and professional liability. Insured persons include registered nurses (RNs), licensed practical nurses (LPNs), aides, physical and occupational therapists, and others. Physicians are not eligible. Bed and board facilities, such as nursing homes and risks that utilize x-rays and anesthesia are not eligible.
Houses of Worship
This class of business includes churches, synagogues, temples, mosques and other religious instituitions and is underwritten by many standard insurers. However, certain markets specialize in providing coverage for churches. Values subject to a total loss may be high. Optional coverages available include crime, theft, directors and officers liability, and clergy professional liability. Sexual misconduct coverage because of alleged actions of clergy and certain other staff positions is often available but for sub-limits.
Marriage and Family Counselors Professional Liability
Marriage counselors deal with the sensitive emotions of marriage and family. As a result, they are more vulnerable to lawsuits for failing to meet the expectations of their profession. Professional liability for these counselors is available in much the same manner as other health care professionals. Underwriting considerations include location, counselor’s credentials, number of visits, and prior suits or incidents, among others. This professional liability coverage may be written on a stand-alone basis or be combined with commercial general liability coverage.
A number of major insurers have developed property and commercial general liability package programs for museums, historical societies, and other groups that have collections of art and antiquities. Coverage is also available for private and public collections of jewelry, antiques, and sports memorabilia, among others. Collections are written on an inland marine coverage form that usually covers flood, earthquake, theft, and damage due to changes in temperature and humidity. Insurers usually require that the insured initiate and maintain certain loss control efforts.
There are more than 1.5 million nonprofits in the United States and the number continues to grow. These organizations have unique needs that standard commercial lines coverage forms and commercial lines underwriting often do not properly address. Coverages needed include property, general liability, professional liability, abuse and molestation, automobile liability, workers compensation, accident and health, directors and officers liability, employment practices liability, and special events liability.
Residential Homes (Transitional, Halfway, Shelters)
Social Services Agencies
Coverage for the professional liability exposures of social services agencies may be insured under a professional liability program specifically designed for their needs. The coverageâ€™s major emphasis is on professional services rendered by the insured agency and its employees in individual, family, or group therapy, interview, or counseling sessions. Limited medical malpractice coverage is provided when employed psychiatrists on the staff desire such coverage. Agencies eligible for the program include drug and alcoholism rehabilitation centers, state or federal social service referral agencies, community service agencies, agencies involved with individual and family therapy, domestic counseling, and group therapy, child guidance clinics, and agencies that treat developmentally challenged, autistic, and psychotic children.
Youth Group Homes
Youth group homes are residences that serve young persons up to age 19. In addition to providing housing, they provide services such as pregnancy prevention counseling for adolescents, counseling for children with AIDS/HIV, group counseling, individual or family counseling, drug and alcohol treatment, and job training. Some also provide related services such as child adoption, day care, emergency shelter, and family crisis intervention. This classification does not include detention facilities. Abuse and molestation coverage is usually subject to sub-limits of insurance.
Youth Outreach Programs
Property and liability insurance coverage is available for buildings and equipment used in urban neighborhood centers for youth. Activities may include recreation, counseling, tutoring, and social events. These are not residential facilities and do not usually provide individualized drug and alcohol treatment and counseling. The coverage provided applies to the sponsoring nonprofit organization and its employee workers and volunteers.