Ten
Things Nonprofit Organizations Need
to Consider in Risk Management
1. General
Liability insurance is for the benefit of an unknown third party.
2. Under
our special social service general liability policies volunteers are included
as insureds. This means that their activities on behalf of the
agency would be covered in the event of a law suit.
3. Liability
includes four separate coverages: General, Professional, Directors
and Officers and Automobile.
4. Volunteers
need to be advised that, unless they are covered under the organization’s
workers compensation, they must be responsible for their own medical insurance
in the event of an accident. (Note: private passenger auto policies
do offer up to $50,000 med pay.)
5. All
persons performing duties on behalf of the organization who are professionals
by training should be mentioned in the application whether they are employees,
1099 contractors, or volunteers.
6. All
special events should be reported to the agent. Information needed
includes date, number of participants, activities, amount of money expected
to result and whether liquor is to be served or not.
7. Crime
policies (employee dishonesty) require that a person who reconciles the
bank statement be one who does not deposit or withdraw and countersignatures
on checks (except small petty cash type checks).
8. Information
required for persons authorized as drivers includes their name as it appears
on their drivers license, date of birth, drivers license no. and state.
9. Find
out from your agent what you should do in the event of a serious claim,
such as a tornado or automobile accident with serious injuries. Some
of our carriers have 24 hour 800 numbers.
10. Work
closely with your agent. No question is too small! Ask questions. Tell
your agent as you add programs, locations etc. Your agent is part
of your planning process!
