Liability
Note that you are sharing your liability limits with any additional insureds added to your liability policy. Make sure
you have high enough limits to cover your organization. Report all services, locations, special events and activities
to your insurance broker. Also, consider adding Employee Benefits Liability endorsements to cover your legal liability for
claims caused by the administration of your employee benefit programs.
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Umbrella
Be prepared for a catastrophic Liability loss. Purchase an umbrella policy! Better safe than sorry!
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Abuse/Molestation
Most Liability policies exclude Abuse and Molestation. Some insurance companies will only provide a sub limit. If your
organization provides one on one counseling, or other direct services, you should consider adding this coverage. Most
insurance companies require federal fingerprinting of employees and/or volunteers before they will add Abuse & Molestation
coverage.
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Property
Property coverage (buildings and personal property) should always be insured to value in order to avoid a co-insurance
penalty in the event of a claim. Report any remodeling or construction work done to your building. For older buildings
you should also purchase Ordinance Coverage. Remember that floods and mudslides are excluded. Earthquake coverage is
usually purchased under a separate policy. A complete inventory of all property should be kept at a separate location.
We recommend that you also video tape your property and keep this tape at a separate location. An "indirect" property
coverage that should always be considered is Extra Expense coverage. After an insurable property claim has occurred,
this coverage affords you the additional cash needed in order to start your operations as soon as possible.
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Non-Owned Auto
Employees and volunteers should not be allowed to use their own vehicle on the agency’s behalf without confirmation that
they have auto liability coverage. We recommend that the driver carry a $300,000 CSL auto liability limit.
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Professional Liability
Employees, volunteers and contractors who have a professional liability exposure should be reported to your insurance
broker. This includes counselors, psychologists, therapists, instructors, nurses, physicians, lawyers, etc. While the
General Liability policy form excludes professional liability, many companies will extend coverage. Also note that
professional liability can be written on a claims made or occurrence form and many policy forms exclude sexual abuse.
Independent Contractors should provide you with proof of their professional liability coverage.
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Mechanical Breakdown
In order to obtain coverage for an accidental breakdown of business equipment and systems (circuit board failure,
electrical arcing or mechanical breakdown of parts) you must purchase Boiler & Machinery coverage. Most property
policies exclude losses that involve electrical line surges, insulation deterioration and poor connections. Typical
losses include a voltage fluctuation which causes terminal boards to burn out! Your fire policy will not cover this
type of claim!
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Special Events
Special events and fund-raisers should be reported to your insurance broker. Specific information needs to be reported
i.e. date of event, number of attendees, revenue from the event, will liquor be served or sold (you may need liquor
liability). If you hire independent contractors, make sure they provide you with a certificate of insurance.
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Fidelity Bond
Fraud is BIG business! Most organizations are vulnerable to a crime committed by an employee!! Purchasing Employee
Dishonesty insurance can protect your organization against fraud. Independent contractors are usually not covered under
the Fidelity bond.
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Directors and Officers
Coverage for Board Members is written on a claims made basis. There are various policy forms, conditions and exclusions
which must be reviewed. Policies may include a deductible and may provide Entity and spousal coverage. Policies may also
cover Employment Related Practices (i.e. wrongful termination, discrimination, etc.).
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