Insurance for Nonprofits
Schweickert and Company has worked with nonprofit organizations for over 30 years. We recognize the unique risks facing nonprofits and offer the insurance products best suited to finance those risks. We are assertive in advocating your interests and responsive to your changing needs.Are you taking full advantage of the new retirement plan rules?
Insurance Coverage Definitions
Commercial General Liability
This is a “core” coverage for a nonprofit that provides protection
against “liability you cause." These acts must include bodily
injury, or property damage to a third party, and may include personal injury
(libel or slander). Ex: A client slips and falls on your property. Be sure
to tell your insurance specialist about all locations: offices, warehouses,
special events, outreach locations, etc., and request “worldwide” coverage.
Be sure to request an "occurrence" policy, not a "claims made" policy.
Your policy should be reviewed annually, as your nonprofit’s programs
shift. You should also cover “hired and non-owned’ autos in your
policy, if your staff or volunteers use their cars for business purposes.
Directors and Officers / Employment Practices Liability
This coverage is designed protect both the organization and its directors
against suits brought in cases involving employment related issues, discrimination,
and sexual harassment. Over 75% of claims filed against nonprofits and
90% of D&O claims are employment-related (wrongful termination, failure
to promote, compensation issues, employment contracts, and related grievances).
Even if you’ve done nothing wrong, your organization and/or directors
and officers are always subject to a disgruntled employee or client’s
allegations, resulting in a lawsuit, or a government agency’s investigation,
with substantial defense costs. The average cost of defending a D&O
claim is around $100,000. The policy should cover all directors, trustees,
officers, employees, committee members and volunteers of the organization
, and should cover the entity as well.
Small Group Health & Disability Benefits
When salaries must be low because of the nature of nonprofits, a great way
to improve your employee loyalty and retention is to provide medical, disability
and life benefits. A variety of low-cost, flexible benefit plans are available.
Volunteer/Accident/Special Event Liability
These risks may be covered under your General Liability Policy or Workers
Compensation policy, but not necessarily. Your insurance advisor should
be aware of all activities of your nonprofit, to assure that the organization
is covered. Don’t forgo this coverage because you think it might
be too expensive… Your exposure is much greater at a large event,
or when working with large volunteer groups.
Professional Services Liability
Social Service organizations who offer counseling services, either by credentialed
or non-credentialed staff, psychologists, or psychiatrists, are at risk
for claims arising out of negligence and errors and omissions by these
activities. This coverage is not true malpractice liability, so be sure
to speak with your insurance advisor to clarify your coverage, especially
if your staff dispense medication.
Workers Compensation
California nonprofits must carry Workers' Compensation even if they only
have one part-time employee. Benefits are paid to employees who are injured
on the job or who suffer an employment-related illness, regardless of fault.
Cost is determined by employees' "class codes" — type of
work performed, and the client's claims history. Managing claims well is
the best way to keep premiums low. New California legislation effective
July 1, 2004, should serve to reduce the cost of Worker's Comp in the future.
Schweickert & Company
15 Peters Canyon Road
Irvine, CA 92606
Direct Phone/Fax: 714-689-1772
Email: Laura@schweickert.com
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