FAQ
What is Commercial General Liability?
Coverage Summary: This is typically the "core" coverage for a nonprofit. Coverage should be provided on an "occurrence" policy, not a "claims-made" policy. Depending on the extent of the general liability coverage purchased, commercial general liability insurance may provide coverage for a wide range of negligent acts which result in bodily injury, property damage, personal injury or advertising injury to a third party.
Directors & Officers Liability Coverage Summary:
The key distinction with directors and officers liability is that it is intended to cover wrongful acts that are "intentional" as opposed to "negligent." This is because directors and officers insurance is designed to cover actions and decisions of the board of directors. These actions may be in error and wrong, but they are, nonetheless, "intentional" acts. Most other types of insurance do not cover "intentional" acts. Among the items a good directors and officers policy should include is broad coverage for all types of employment related actions, including wrongful termination, harassment, discrimination, failure to hire, etc. It should also pay defense costs as they are incurred, not on a reimbursement basis.
Do I need to carry Improper Sexual Conduct Liability?
Coverage Summary: Also known as sexual abuse coverage. The intent of this coverage is to respond to allegations of sexual abuse. This should not be confused with sexual harassment, which is more appropriately insured under a directors and officers policy.
Any organization that provides services to youth, developmentally disabled of any age, or senior citizens should consider this type of insurance.
Any organization that provides services to youth, developmentally disabled of any age, or senior citizens should consider this type of insurance.
Business Auto Liability Coverage Summary:
Commercial Auto coverage may include liability only or may also provide physical damage coverage. The liability portion covers damage to other vehicles or property and injury to others for accidents for which you are at-fault. Auto physical damage covers repair of vehicles you own. Uninsured/underinsured motorist coverage may be purchased with the business auto policy and it provides coverage for accidents involving uninsured or underinsured motorists.
What is Non-Owned & Hired Auto Liability?
Coverage Summary: If your employees or volunteers use their own vehicles on company business, this coverage is highly recommended. The purpose of this policy is to provide liability coverage excess of an individual employee's or volunteer's auto insurance. If the organization is held liable for the employee's or volunteer's actions involving his or her vehicle and the limits of the individual's personal auto insurance policy have been exhausted, the coverage will be engaged.
Do I need Social Service/Miscellaneous Professional Liability?
Coverage Summary: This coverage is usually available as an endorsement to the Commercial General Liability policy. It typically provides coverage for negligence and errors and omissions as a result of professional and peer counseling activities. While it may, depending on the policy, cover nurse practitioners and the dispensing of medications, it is not true malpractice liability coverage. This policy is not sufficient for organizations with medical malpractice exposures.
Employee Benefits Liability Coverage Summary:
This coverage is purchased as an endorsement to the Commercial General Liability policy. It is intended to cover damages from your organization's negligent handling of the administration of your employee benefits program.
Employee Dishonesty Coverage Summary:
Employee dishonesty coverage is designed to insure against an employee's fraudulent or dishonest act, such as embezzlement. According to the U.S. Chamber of Commerce, a third of all employees steal from their employers, and many of the business failures in this country can be linked to employee theft. Most fraud happens to small employers with fewer than 100 employees. This coverage can be purchased with property coverage.
Commercial Property Coverage Summary:
Property coverage is purchased to protect the physical assets you own or lease such as buildings, office equipment, computers, furniture, etc. When considering property coverage, it is important to have a thorough inventory of all physical assets, and to make sure the property is accurately valued and adequate coverage limits are purchased.
What is Participant/Volunteer Accident Coverage?
Coverage Summary: Accident insurance provides a limited amount of coverage for injury to a student/volunteer/participant (depending on the specific coverage) on a no-fault basis. It is not workers' compensation coverage! Under commercial general liability, it is typically necessary to establish fault before a payment is made. Accident insurance does not require the nonprofit to be at fault, and may apply prior to, or in excess of, an individual's health insurance policy.
Call us today for a quote for one or all of these coverages!
(some coverages can not be quoted on a "Stand Alone" basis).
