CDPartners

United Heartland Insurance

John wanted to provide our CDPeople with some talking points for Nonprofits from an insurance perspective.

• Directors and Officers coverage – This coverage can protect board members and officers against legal expenses if they are sued for a poor decision, such as an extravagant purchase that wasted donated funds. It also provides protection for the organization board members being sued. If you sit on a board for a non-profit organization. Do you realize without D&O insurance coverage YOU are actually exposing yourself to being sued personally? This means “John Smith” Sits on “XYZ Organization’s” Non-profit Board. John Smith has a full time job and owns a Home and 2 vehicles with his family. Without XYZ Organization carrying Directors and Officers Coverage, John Smith’s home and 2 vehicles and any other assets that John Smith has can now be exposed to judgement. This goes for any other board member, not just the Director. D&O coverage places a wall of protection between the assets of the organization and John Smith personally.

• Volunteers as Insureds Endorsement – Not all insurance companies that offer Non-Profit insurance include this in their policies. If XYZ Organization is hosting a fund raising event and have volunteers working a booth or handing out flyers or simply opening a door for people and cause any bodily injury, damage, or harm to another person or organization, insurance policies can exclude “volunteers” specifically and therefore the your volunteer or helper now has to fend for themselves in court.

• Professional Liability ( AKA Errors and Omissions) – If you are a Non Profit Organization that offers Counseling, Advice, Education, or provides direction to others, you may have a professional liability exposure. Professional Liability is NOT Covered by a General Liability insurance policy. It specifically excludes this. What is the difference you ask? The main difference between general liability and professional liability is in the types of risks they each cover. General liability covers physical risks, such as bodily injuries and property damage. Professional liability covers more abstract risks, such as errors and omissions in the services your business provides. Below are a few examples of these situations.

Work mistakes or oversights

Being accused of a professional mistake can be costly, especially for a small business. If your animal shelter skips a background check and an adopted pet is abused, you could face an expensive lawsuit. Professional liability insurance for nonprofit organizations can help cover attorney’s fees, court costs, and other legal expenses.

Failure to provide promised services

As a nonprofit professional, you try to offer solutions to important social problems. However, your efforts might not always go as planned. When your nonprofit is accused of not fulfilling its promises, professional liability insurance can cover the cost of a lawsuit, including a settlement or court-ordered judgment.

Allegations of negligence

Nonprofits that provide counseling or guidance can be exposed to massive liability. For example, if a staff member at your counseling center fails to recognize suicidal ideation in a teen, your organization could be accused of negligence if the teen later causes self-harm. In the event of a lawsuit, professional liability insurance can cover the expense of hiring an attorney, court costs, and settlements or judgments.               

• Employment Practices Liability - If a nonprofit is sued by an employee over harassment, discrimination, or another violation of employee rights. This coverage can pay for legal costs.

Reach out to John via email by clicking the link below or calling him at O: 513-896-5555, O:513-530-5515. Visit the United Heartland Insurance website here: www.uhins.com