Protect Personal Liability

When an individual volunteers their time and energy to a non profit organization, they need to make sure they are not risking their personal financial security.  That's why they need non profit organizational liability insurance, which helps protect them and the organization in the even of a lawsuit.  The Non Profit Organization policy specifically addresses the exposures non profit organizations face everyday.

 

A Litigious Society

In today's litigious society, even non profit organizations run the risk of being sued for an extensive list of alleged wrongdoing.  They include:

◊ Discrimination (age, race, sex, employment, membership)

◊ Harassment

◊ Wrongful termination of employees

◊ Inefficient administration or supervision

◊ Waste of assets

◊ Misleading reports or other misrepresentations

◊ Libel and slander

◊ Failure to deliver services

◊ Acts beyond granted authority

Tradition forms of protection leave gaps

 

Volunteer statues are not adequate

To limit the ability of volunteer board members, many states have enacted volunteer protection statutes.  However, each statute needs to be examined carefully before relying on its protection.  In certain instances the statutes are deficient, in that they typically:

◊ Do not protect the organization

◊ Only apply to volunteers, leaving other individuals, such as
     employees, exposed to personal liability.

◊ Limit damages, but do not reduce defense costs.

◊ Do not apply to allegations of gross negligence or willful
     misconduct, a common allegation.

◊ Do not apply to violations of federal statutes, such as
     discrimination.

General liability insurance leaves gaps

Most non profit organizations assume a general liability policy will provide coverage for various allegations.  Actually, many general liability policies specifically exclude employment-related claims. Even when employment related claims are not excluded, the general liability policy is only triggered by a reported claim based on an occurrence of property damage or bodily injury.

 

Loss prevention is only part of the picture

An effective loss prevention program can help to reduce liability exposures, but will not prevent litigation.  Loss prevention must be used in connection with a comprehensive insurance program because even an organization that has made appropriate management decisions can be forced to defend itself.

 

A specialized insurance policy offers the most cost effective solution

Can a non profit organization find the funds to mount a defense against allegations?  Can the organization pay if  directors and officers are found liable? The non profit organization liability policy offers comprehensive coverage at a competitive price. As a leading specialist in this field that is actively managing the placement of this coverage for an extensive number of diverse non profit organizations, RF Ougheltree & Associates, LLC is able to present an insurance application to a number of leading insurance companies with strong Standard & Poor's and A.M. Best Company ratings and develop a comprehensive coverage proposal that is responsive to the non profit organization.

 

 

Your next step

RF Ougheltree & Associates, LLC works closely with independent agents and brokers to help protect non profit organizations and their executives, employees and volunteers.  Call us to discuss your activity with this class of business and opportunities to support your efforts to develop meaningful coverage programs for your clients.  You can obtain applications on our web site by going to our LIBRARY and scrolling down to the coverage section for Directors & Officers / Management / Executive Liability. The main application forms for this class of business are  #57 and #58 but other application forms may apply so please review the available forms carefully and contact us for help.  Note that these applications allow us to market your account to a number of carriers that are interested in a particular type of risk. NOTE: The LIBRARY is Pass Word protected so if you don’t currently have a production agreement with RFOugheltree & Associates, LLC please contact Bob Ougheltree at 201-964-9881 ext. 107 (or email rougheltree@rfoins.com) to discuss business opportunity.

 

 

Roll Over  Book of Non Profit Organization Business to a A++ carrier.

We are interested in helping you “roll over” books of business to a stable insurance company that specializes in Non Profit Organizations.  To be eligible for a “roll over” we require a book of business that can generate a minimum of  $100,000 premium.  The process is simple; all you need to do is contact us with the total number of policy files. We will then arrange a visit to your office with an underwriter who will quote each eligible account based on information in your file.  We will also provide you with a draft letter for your insured detailing the advantages of the proposed coverage and provide coverage comparisons.