The document discusses various types of liability insurance that nonprofits should consider purchasing, including general liability insurance, directors and officers liability insurance, professional liability insurance, and other specialized coverage. It provides details on what each type covers, differences between certificates of insurance and additional insureds, how to evaluate current coverage and risk management, and tips for selecting brokers and insurers.

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 www.councilservicesplus.com

2. 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

3. 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

4. Liability for bodily injury or property damage Liability Insurance Products General Liability (GL) & Property Coverage Bodily Injury & Property Damage Personal & Advertising Injury Medical Payments

5. 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.

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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?

13. 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

14. 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

15. Implementing New Insurance Programs Insurance binders Payment plans Certificates of insurance Review insurance policies Claims handling Risk management services Thank you!!