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Insurance for Reuse Programs

Insurance for Reuse Programs

 

The insurance needed depends on the organizational structure of the program, whether it has some insurance through an associated organization and the type of activities in which it engages.

 

Types of coverage

 

Insurance is available to cover most business risk. The organization must balance the risk against the potential loss or liability. The following table summarizes some of the common types of insurance. These may be sold in differing “packages” depending on the insurer.

 

Where to get coverage

 

The types of insurance named in the table are available through business insurance brokers. However, it may be advantageous to identify firms or agents who specialize in writing insurance for nonprofits. Special rates may be available through the state association for nonprofits. (See list of these organizations attached to the Resources for Nonprofit Organizations article.)

 

 

Type

Coverage may include

Considerations

Property and Casualty

Loss or damage to property

How great is the potential risk of loss? Does the organization own or rent its facility?

What is the value of the equipment, furniture and fixtures?

What is the value of the device inventory on hand?

Size of deductible

Workers Compensation

Employee on-the-job injuries

Varies by state; may be mandatory with only one employee.

Liability, general

 

Provides payments to third parties (not employees or volunteers) who suffer accidental property damage or personal injury

 

Directors and Officers (D&O), a special form of liability

Covers financial liability resulting from decisions by officers and directors

 

Improper Sexual Conduct, specialized liability

Covers lawsuits; sometimes provides salary reimbursement during an investigation

Coverage may be included or an add-on to D&O

Employment Practices

Includes wrongful termination, harassment, discrimination, retaliation, employment-related libel or slander, wrongful failure to employ

 

Crime (employee theft, embezzlement

Covers financial loss to the organization

Insurer may require specific separation of responsibilities in the Accounting Dept. to minimize opportunity for crime

Umbrella liability

A more general form of liability coverage that extends the specific coverages

 

Health Insurance

Benefits provided to employees

Expensive unless available under a larger organization; use of PEO is an option (see Payroll article)

Life Insurance

Long-Term Disability

Automobile, owned

Coverage for damage to vehicles; liability for injury to others; medical payments to injuries; liability for damage suits

Cost of deliveries can be minimized by leasing vehicles; save on capital expenditures and insurance. Must check driving records of all drivers and keep on file.

Automobile, non-owned vehicle (leased or rented )

Damage to rented vehicle covered by owner’s policy; leasing organization needs liability coverage in event of suit

Consider up to $1 million in liability coverage; must require and check driving records of both employee and volunteer drivers and keep on file; require adequate personal insurance by drivers

 

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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.

Attachments

Other Information

Title: Insurance for Reuse Programs
Module: Organization
Author: Trish Redmon
Audience: Administrator
Sub Title:
Procedure:
Organization Source: Pass It On Center
Last Reviewed: 04-25-2010 2:47 PM