Traveling the Insurance Maze continued

December 20, 2011

Non-Profit animal shelters and rescues are at risk for lawsuits.  It is critical for your organization to be properly protected and insured in the event a lawsuit occurs.  One way to do that is to audit your insurance policies what do they really cover?  Yesterday we reviewed 2 types of coverage your shelter or rescue should have in place. Below you will find another list of important coverages:

Workers Compensation:  Most companies (nonprofit organizations included) are required to carry workers compensation insurance to protect their employees.  This insurance pays for medical bills, disability pay, and for third-party liability in case someone has been affected by the employee’s loss. Volunteers can usually be covered by simply extending your policy.

Business Auto Liability: Does your animal shelter use vehicles to transport rescue animals? If you do then your organization is at risk and should consider business auto liability insurance. Liability for non-owned vehicles is important if your employees or volunteers use their cars to do work for your organization. If you have a small business, a personal auto policy may be best for you because it offers additional coverage to existing personal insurance to cover limited business needs. Personal vehicles can be covered by hired and non-owned coverage if the volunteers and staff use their own vehicle for business work.

Directors and Officers: (D&O) insurance covers the accidental actions of board members that can result in liability. These disputes are usually between the executive director and the board of directors, so it is important that small business is covered by D&O insurance as well. Allegations of improper financial oversight, harassment, or discrimination are also covered by D&O as long as the organization actions are legal.

Umbrella liability:  insurance expands the liability limits of your general liability, workers compensation, commercial auto policy, and directors and officers. The additional coverage is usually purchased in $1 million layers, and this additional coverage is often a great value. By adding just a small amount to your premium you can double or coverage, or more.

 

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