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Insurance Secrets


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Insurance Secrets

  1. 1. Insurance Secrets for Nonprofits What you must know before purchasing your organization’s liability insurance Presenter: Peter Andrew, CEO, Council Services Plus 272 Broadway Albany, NY 12204 877.501.4277, Ext 125
  2. 2. Liability... <ul><li>When an individual (or organization) is legally responsible for damages due to negligence. </li></ul><ul><li>- Direct Liability- Entity is directly responsible for the failure to prevent harm </li></ul><ul><li>- Vicarious Liability- Entity is liable for the actions of its agents </li></ul>
  3. 3. 3 types of liability discussed today <ul><li>Liability for bodily injury or property damage </li></ul><ul><li>Liability NOT resulting in BI or PD </li></ul><ul><li>Liability for rendering or failure to render a professional service </li></ul>
  4. 4. Liability for bodily injury or property damage <ul><li>Liability Insurance Products </li></ul><ul><ul><li>General Liability (GL) & Property Coverage </li></ul></ul><ul><ul><ul><li>Bodily Injury & Property Damage </li></ul></ul></ul><ul><ul><ul><li>Personal & Advertising Injury </li></ul></ul></ul><ul><ul><ul><li>Medical Payments </li></ul></ul></ul>
  5. 5. Liability for bodily injury or property damage <ul><ul><li>Certificates of Insurance Vs. Additional Insureds </li></ul></ul><ul><ul><ul><li>What’s the difference? </li></ul></ul></ul><ul><ul><ul><li>Why are they requested? </li></ul></ul></ul><ul><ul><ul><li>Keeping up with them. </li></ul></ul></ul>
  6. 6. Liability for bodily injury or property damage <ul><li>Special Events Coverage </li></ul><ul><ul><li>Can be covered within a GL policy or separately </li></ul></ul><ul><li>Hired & Non-Owned Auto </li></ul><ul><ul><li>Coverage for Entity </li></ul></ul><ul><ul><li>Coverage for Individuals </li></ul></ul>
  7. 7. Liability NOT resulting in BI or PD <ul><li>Directors & Officers Liability Insurance (D&O) </li></ul><ul><ul><li>Is it required or necessary? </li></ul></ul><ul><ul><li>What’s covered </li></ul></ul><ul><ul><ul><li>Board Management decisions </li></ul></ul></ul><ul><ul><ul><li>Employment Practices </li></ul></ul></ul><ul><ul><li>Exclusions </li></ul></ul>
  8. 8. Liability for rendering or failure to render a professional service <ul><li>Professional Liability </li></ul><ul><ul><li>Health Care & Mental Health Agencies </li></ul></ul><ul><ul><ul><li>Malpractice </li></ul></ul></ul><ul><ul><li>Counseling, Referral & Educational Agencies </li></ul></ul><ul><ul><ul><li>Errors & Omissions (E&O) </li></ul></ul></ul><ul><ul><ul><li>Miscellaneous Professional Liability </li></ul></ul></ul>
  9. 9. Other Types of Liability Coverage <ul><li>Crime Insurance (Employee Dishonesty) </li></ul><ul><li>Sexual Misconduct (Abuse/Molestation) </li></ul><ul><li>Host Liquor Liability </li></ul><ul><li>Commercial Auto </li></ul><ul><li>Fiduciary Liability </li></ul><ul><li>Benefits Liability </li></ul><ul><li>Excess and Umbrella Coverage </li></ul>
  10. 10. Current Insurance Market for Nonprofit Organizations <ul><li>Current Insurance Market </li></ul><ul><li>Sources for Insurance for Nonprofits </li></ul><ul><ul><li>Social Service Agency Package Programs/Specialty Companies </li></ul></ul><ul><ul><li>Regional/National Nonprofit Insurance Programs </li></ul></ul><ul><ul><li>Agents/Brokers specializing in nonprofit insurance programs </li></ul></ul>
  11. 11. When do you shop? <ul><li>Conditional Renewal and Non-renewal Notices </li></ul><ul><ul><li>60 Days in Advance </li></ul></ul><ul><ul><li>Be Proactive and Deliberate </li></ul></ul><ul><ul><ul><li>Set a consistent parameter </li></ul></ul></ul><ul><ul><ul><ul><li>Price increase of more than 10% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Inability of carrier to offer proper coverage </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Poor service </li></ul></ul></ul></ul><ul><ul><li>Distinguish between Broker issues and Carrier issues </li></ul></ul>
  12. 12. Evaluating Your Current Risk Management Program <ul><li>Evaluate current insurance coverage with current broker/insurer </li></ul><ul><li>Review areas of desired improvement in coverage with Board Committee </li></ul><ul><li>Evaluate current Risk Management efforts </li></ul><ul><li>Additional Considerations </li></ul><ul><ul><li>Will you need board or committee approval? </li></ul></ul><ul><ul><li>What are your contractual obligations? </li></ul></ul>
  13. 13. Selecting Brokers and Insurers <ul><li>Two or three good brokers should be able to access five or six insurance companies </li></ul><ul><ul><li>First send a letter/packet to express interest </li></ul></ul><ul><ul><ul><li>What to include? </li></ul></ul></ul><ul><li>Insurance company procedures </li></ul><ul><ul><li>1st come, 1st served </li></ul></ul><ul><ul><li>broker of record letter </li></ul></ul><ul><ul><li>market assignments </li></ul></ul>
  14. 14. Underwriting information <ul><ul><li>Application </li></ul></ul><ul><ul><li>Prior claims information </li></ul></ul><ul><ul><ul><li>AKA Loss Runs </li></ul></ul></ul><ul><ul><ul><ul><li>3-5 years </li></ul></ul></ul></ul><ul><ul><li>Annual report/brochures </li></ul></ul><ul><ul><li>Financial statements </li></ul></ul><ul><ul><li>Copies of any policies that could pertain </li></ul></ul><ul><ul><ul><li>Personnel Policy </li></ul></ul></ul><ul><ul><ul><li>By-laws </li></ul></ul></ul>
  15. 15. Implementing New Insurance Programs <ul><li>Insurance binders </li></ul><ul><li>Payment plans </li></ul><ul><li>Certificates of insurance </li></ul><ul><li>Review insurance policies </li></ul><ul><li>Claims handling </li></ul><ul><li>Risk management services </li></ul><ul><li>Thank you!! </li></ul>