Like any business today, Nonprofit and Human Service Organizations need the right insurance coverage to protect their people and assets. And understanding your unique risks is the first step in managing them. Lamb Insurance Services is the largest insurance brokerage dedicated to nonprofits and human service organizations and our risk management team suggests you focus on these claim drivers.
(1) AT-FAULT AUTO CLAIMS – Commercial Auto remains at the top of our list. While your Workers’ Compensation coverage will protect your drivers and other employees in a vehicle, the risk remains high particularly if pedestrians are involved. Over the past decade, advances in handheld devices and telematics have lessened the number of distracted drivers, but It’s still critical to screen and train your team on auto safety to minimize potential incidents.
(2) SEXUAL ABUSE CLAIMS – These claims are low frequency but can be catastrophic to your organization and its reputation. From childcare centers and food banks to homeless shelters and group healthcare homes, organizations that serve children, developmentally or physically disabled individuals, or the elderly and infirmed face unique risks that can leave them vulnerable to claims of sexual abuse or molestation.
(3) FAILURE TO PERFORM – Professional Liability coverage, often referred to as Errors & Omissions (E&O) insurance, protects your organization against claims of malpractice. Most of these claims stem from the simple premise that your organization failed to do what you were hired to do for the claimant. By developing clear procedures that are in sync with communication materials and staff training, you can help minimize this risk.
(4) SLIP & FALL – General Liability is sometimes referred to as “slip & fall” coverage as it remains the number one cause of General Liability claims today. These are specific to outside or third-party claimants (clients, visitors, vendors, etc.) who may fall and hurt themselves on your property. Loss control services can identify which areas of your property are most susceptible to such falls to help minimize these claims.
(5) CYBER ATTACKS – Non-profits need protection against severe cyber attacks like ransomware and data theft, and from daily threats like phishing and funds transfer fraud. Purchasing a standalone Cyber policy is the best way to be protected. Non-profits may further reduce their risk through the use of cybersecurity “best practices,” free online tools, and 3rd party cybersecurity services.
(6) DISCRIMINATION – Claims of discrimination and wrongful termination issues are part of your Employment Practices Liability coverage. You can help minimize these issues by having policies, standards, evaluations and procedures in place.
This is not meant to diminish the need for other important coverages such as Directors & Officers Liability (D&O) as these too are often important for your protection. In addition, the cost of litigation and jury awards have increased dramatically, which in turn impacts the outcome of every potential claim. Often referred to as “Social Inflation,” this spike has forced some insurance companies to raise premiums in order to afford the court awards issued against their clients. Your best option is to take steps to minimize the frequency and severity of claims.
If you’d like to discuss your risk profile and coverage needs, and what loss control measures may be available to your organization, please reach out to us today.