Enscoe Long Specializes In Nonprofit Insurance – Part 3

Enscoe Long Insurance Group specializes in providing customized insurance for nonprofits. In fact, we provide insurance to over 200 nonprofit agencies. There are a variety of insurance products, which nonprofits should carry.

This week we are focusing on specialized insurance products.

Directors and Officers Liability Insurance (D&O)

D&O insurance policies are common and necessary to cover the actions and decisions of the board directors and officers in your nonprofit. Regardless of your organization’s size and board experience, Enscoe Long usually recommends that all nonprofit organizations purchase D&O insurance protection. Why?

Nonprofit board members and officers should be protected if they’re named in a lawsuit alleging fraud or financial mismanagement. Creditors may pursue a board member, if their investment decisions cause their nonprofit to fail to meet its financial obligations.

D&O insurance can protect directors and officers against the legal costs of a lawsuit and any damages, if the court rules in the plaintiff’s favor.

Policies may exclude coverage for criminal or fraudulent behavior, claims between directors or other situations. Since D&O insurance only applies to officers and the board of directors, your nonprofit still needs general liability insurance to address other risks.

D&O liability insurance will not provide coverage for what many would consider the worst acts of the directors or officers, including but not limited to dishonesty, fraud, criminal or malicious acts committed deliberately. D&O insurance will not provide coverage for bodily or personal injury of a person or physical damage to a third person’s property.

Sexual Misconduct Liability

Nonprofit improper sexual conduct and abuse coverage provides protection for actual and alleged claims of various types of abuse, by your employees and volunteers to third parties.

Sexual misconduct liability pays for defense and settlement, if the plaintiff wins their case in court. Claims may include client lawsuits against an employee, volunteer, or contractor due to abuse or from negligent supervision resulting in abuse or molestation.

General and professional liability policies exclude these risks, so organizations that serve at-risk populations such as seniors, youth, or the disabled should consider this coverage.

For non-profit organizations that are able and willing to take steps to control and minimize their abuse / molestation exposure, insurance coverage is available through Enscoe Long Insurance Group. Nonprofits can also take basic anticipatory measures such as background/drug checks, diversity training, how to respect others in the workplace training and enforcing rules that prevent one-on-one isolated contact with vulnerable persons.

Cyber Liability Insurance

Nonprofits are just as vulnerable to data breaches as any other for-profit company. Nonprofits often retain and manage very sensitive data. Confidential client, donor, and employee data are all at risk, especially if your organization uses mobile technologies, such as laptops and cellphones.

Does your nonprofit:

  • Conduct e-commerce on its website, such as processing donations or event registrations?
  • Store and transfer (such as by sending to the cloud) “personally identifiable information,” about anyone, including donors? (Common examples of personally identifiable information include: clients’ medical information; employee records, including drivers’ licenses, addresses, and social security numbers.)
  • Collect information on donors, patrons, newsletter subscribers?

If your nonprofit engages in any of the above, you may want to take steps to address cybersecurity threats.

Cyber liability insurance covers expenses associated with data breaches, such as costs to defend claims by state regulators, fines and penalties, credit monitoring, and identity theft losses. Your Enscoe Long insurance agent can walk you through your options.

Interested in learning more? Check out our previous blog posts on liability and property insurance for nonprofits.

Ready to get started? Visit us at our website or drop us an email today!

Enscoe Long Specializes In Nonprofit Insurance – Part 2

Last week, the Enscoe Long team brought you information about liability insurance for nonprofits. This week we are focusing on nonprofit property insurance. So what’s the difference? Liability insurance and property insurance provide different types of coverage. Both types of policies are necessary to protect a nonprofit. For more on liability insurance for nonprofits, check out the previous post by clicking here.

PROPERTY INSURANCE

Whether you own or rent the space, your nonprofit should probably contemplate what your organization might lose in the event of a natural disaster such as a hail, fire, earthquake, tornado, severe storm, etc. Also, will you be protected if someone breaks into your nonprofit and destroys or vandalizes your property? Property insurance, which covers such events, is designed to cover not only the building (if your organization owns it) but any:

  • fixtures (such as lighting systems or carpeting)
  • equipment and machinery
  • office furniture
  • computers and accessories (and)
  • inventory and supplies

Most basic policies will cover these items — but at what dollar amount? Let your Enscoe Long insurance agent help walk you through how to evaluate and report the dollar amounts associated with the contents of your nonprofit.

Tip 1: Remember that your nonprofit needs property insurance even if the organization doesn’t own its buildings. All the things inside those buildings are still vulnerable to unpredictable disasters. In fact, your lease  and/or rental agreement might require your organization to carry property insurance.

Tip 2: Make sure the policy covers the cost to replace the property, instead of paying its market value, as a “used good” immediately before the damage.

Tip 3: Ask your Enscoe Long agent to carefully explain your deductible (how much your organization will be “out of pocket” before the insurance kicks in) and what types of losses or property damage will not be covered under the policy. For example, flood insurance is usually sold separately. And your organization may have to pay extra to have theft coverage included.

Do you want to learn more about specialized insurance products for nonprofits? Click here.

Are you a ready to talk about your nonprofit property insurance needs with an Enscoe Long insurance broker? Get started by visiting www.enscoelong.com or drop us an email by clicking here.

Enscoe Long Specializes in Insurance for Nonprofits

Enscoe Long specializes in providing nonprofits with comprehensive insurance coverage. In fact, as of 2021, the Enscoe Long team manages insurance policies for more than 200 nonprofit agencies.

Often understaffed with limited resources, charity groups and nonprofits don’t necessarily have the time or the staff in place to research and develop a robust (yet cost effective) insurance strategy and plan.

And because this is Enscoe Long’s area of expertise, we are launching a blog series on the best way for nonprofits to navigate the often complex and daunting task of acquiring and managing  insurance coverage.

So, if you’re a nonprofit looking for insurance, where do you begin?  We will start with general liability insurance. What is it and how can it protect your nonprofit?

General Liability

General liability insurance protects your nonprofit against assertions that someone suffered bodily injury (such as a traditional slip and fall scenario), property damage or various kinds of personal injury, which occurred on your property.

General liability insurance is rated differently depending on the best way to measure your nonprofit’s risk.  Square footage, receipts, payroll and the number of employees or participants may be used in determining a price.

Tip 1: No matter how the coverage is rated, it is important to get quotes for at least $1,000,000 for each occurrence and $2,000,000 for policy aggregate.  Higher limits may be available and affordable, and you should ask your Enscoe Long insurance agent to explore this.

The average price of a standard $1,000,000/$2,000,000 general liability insurance policy for small nonprofit organizations ranges from $27 to $59 per month based on location, size, payroll, sales and experience.

Tip 2: Every nonprofit needs a general liability policy. Also, any vendors or contractors you hire should provide evidence of current coverage for general liability (and for workers’ compensation). Don’t let them begin work until proof of coverage has been provided.

Professional Liability

Please keep in mind that the general liability policy provides no protection against allegations of an error or omission, with respect to your  professional services. Over the years, the definition of “professional” has changed and expanded greatly. Many nonprofit organizations that engage in counseling, vocational training and other kinds of instruction have a professional liability exposure. Professional liability insurance coverage is available. Policies are not standard. These policies are written specifically for each organization’s particular risk. Enscoe Long can help your nonprofit choose a professional liability product, which is right for your organization.

So, what about nonprofit volunteers? How are they covered?

Volunteer Liability

Volunteers are often the lifeblood of any nonprofit. Does your nonprofit need to carry liability insurance for volunteers as well?

A broadly written general liability policy includes coverage for bodily injury, property damage or personal injury by volunteers. However, many nonprofit organizations choose to insure their volunteers separately, to protect the organization’s own available limits of liability and its claims experience, if a volunteer creates a claim. This is a specific insurance coverage strategy, which requires a more detailed explanation. Ask your Enscoe Long insurance agent for context and clarification.

Click here for part 2 in this series on insurance for nonprofits – focusing on property insurance

Click here for part 3 in this series on insurance for nonprofits – focusing on specialized insurance products.

To connect with an Enscoe Long insurance agent, please click here to send us an email today!

Should You Buy Life Insurance during COVID-19?

You probably already know that life insurance offers financial protection for your loved ones, if you pass without warning.  But maybe you hadn’t even considered acquiring life insurance until trudging through a global pandemic. Now things are just different.

According to reports provided by Deloitte & Touche LLP, COVID-19 has prompted a notable increase in life insurance activity. Deloitte went on to conduct a life insurance consumer survey in November 2020, which “revealed that 40% of interviewed underinsured buyer are now considering increasing their coverage because of the pandemic.”

Formerly the Medical Information Bureau, the MIB Group also reports younger people appear more interested in increasing mortality coverage (life insurance) in response to COVID-19. The reason? Although there is no direct data, it would follow that younger people are more likely to have children and mortgage debt to cover if they died.

Younger people have also experienced higher unemployment rates throughout the pandemic. As a result, they have looked to purchase individual coverage to make up for the loss of employer-sponsored policies.

Although the extreme government counter measures to COVID-19 have started to wane, the threat of COVID-19 will continue to exist. “Rather than die out, the virus will likely ping-pong back and forth across the globe for years to come.” – Foreign Affairs

New cases in the United States have more than doubled over the last 14 days (as of June 20, 2021) to an average of 31,745 a day, driven mainly by infections among the unvaccinated. With just 49 percent of the country fully vaccinated, the US government is scrambling to persuade more people to seek out shots so that the U.S. can achieve herd immunity.

As it stands now, the US market is just beginning to rebound. It’s going to take time.

And as the market begins to find solid ground, employers also need to be reviewing how to insure their employees are receiving a mortality benefit, which makes sense for them and their families.

Because of the ongoing pandemic, you may want to consider purchasing a life insurance policy. If you have an independent policy or if you carry the policy through your employer, it’s time to discuss the terms of your policy with an Enscoe Long insurance broker.

If you are an HR specialist, who manages insurance benefits, your goal is to provide best in class insurance products, including mortality benefits, for those you represent. It’s our job to ensure you reach that goal.

While some life insurance companies have changed their approach to applications in response to the COVID-19 outbreak, others are underwriting applicants with pre-pandemic guidelines. Enscoe Long will work with you to determine which company/policy will work with your unique circumstances.

If you already have an active policy in place and you pass as a result of a pandemic-related illness, your family will still receive the death benefit, even if you had traveled abroad. Life insurance covers pandemics, assuming you were truthful about your travel plans during the application process.

There are life insurance options available for everyone and working with Enscoe Long is the best way to find the right life insurance policy for you.

Ready to get started? Drop us an email by clicking here.