Article

Organizational Structure, Governance, Insurance, 3

Organizational Structure

Insurance

 

The article below is excerpted from the audio transcript of a Policy Series Webinar presented by Jessica Brodey, attorney and consultant, for the Pass It on Center on March 24, 2008. The Webinar subject was Organization, Governance and Insurance. See Part 1 – Policies and Procedures and Part 2 – Organizational Structure.

 

 

The last area that we want to cover today is insurance. There are so many types of insurance out there. What you really need to do is sit down and figure out the first two areas that we discussed. Who are you as an organization? What is your legal entity status? What is your staffing model? And how does your governance work? And then, based on those things, you can answer some questions about what types of insurance are appropriate for your organization.

 

Do you need directors and officers insurance? Well, if you have a board, and you have directors and officers, then, yes, you really should get directors and officers insurance.

 

If you don't have directors and officers, but maybe you have one person who's in charge and running the organization and a lot of volunteers, you may want to insure that key person. If you have employees, you'll need insurance for the actions of your employees. If you have volunteers, you have to figure out if you want to insure your volunteers or if your volunteers need to be insured through whatever organization they volunteer through. If you have drivers, you'll need driver transportation insurance. Just because your driver has car insurance doesn't mean that you are insured when the driver is transporting something.

 

If you have facilities, whether off-site storage units or the place where your clients walk in and meet with you and are served, then you need to insure your facilities, and you need to insure them in two ways. One is in case something happens to cause physical damage to the facility. The other is to insure the facility in case something bad happens at the facility. Perhaps an employee gets injured at the facility; or you have a client who slips and falls on ice because the front sidewalk wasn't shoveled properly. You'll need to have proper insurance to take care of that.

 

Consider your inventory. What happens if there's a fire, if there's a theft, or if something else happens to your inventory? Do you have your inventory appropriately insured?

 

And then there are your activities. What activities are you engaged in? Are you going out to people's houses and delivering equipment to them? Are you engaged in activities where people come into your building? Are you engaged in activities where you go places and do big collections? You need to have insurance that appropriately reflects the activities that you are doing.

 

We talked about property. Now, a lot of property is your inventory and your facilities. But you may have on-site property and your off-site property. You can own land that you're building on. So you want to make sure that your property is insured also as well.

 

You may have trucks. You may have big luggage carts for moving things around.

 

Insurance is one of those areas in which you're not writing policies and procedures for insurance, but you are looking to make a determination about acquiring insurance policies. And the questions that you need to ask, the policies that are relevant here are: Who are you going to insure? What groups? What categories of insurance do you think are important for your organization? What activities will you insure?

 

Your activities and your policies must be consistent with the insurance coverage that you have. So if you have insurance coverage that refuses to cover you for transporting any equipment, then you, as an organization, need to ensure that your policies and procedures state "No transporting of equipment." If your policies and procedures say that you can't store anything in a room that doesn't have a lock, then you shouldn't put equipment in a room that doesn't have a lock, and your policies and procedures should reflect that.

 

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DISCLAIMER

This work is supported under a five-year cooperative agreement # H235V060016 awarded by the U.S. Department of Education, Office of Special Education and Rehabilitative Services, and is administered by the Pass It On Center of the Georgia Department of Labor – Tools for Life.  However, the contents of this publication do not necessarily represent the policy or opinions of the Department of Education, or the Georgia Department of Labor, and you should not assume endorsements of this document by the Federal government or the Georgia Department of Labor.

 

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Other Information

Title: Organizational Structure, Governance, Insurance, 3
Module: Organization
Author: Jessica Brody
Audience: Administrator
Sub Title: Webinar: Part 3 -- Insurance
Procedure:
Organization Source: PASS IT ON CENTER
Last Reviewed: 11-30--0001 12:00 AM