Like any business today, Nonprofit and Human Service Organizations need the right insurance coverage to protect their people and assets.

April 26, 2023 / bracketmedia

Like any business today, Nonprofit and Human Service Organizations need the right insurance coverage to protect their people and assets. And understanding your unique risks is the first step in managing them. Lamb Insurance Services is the largest insurance brokerage dedicated to nonprofits and human service organizations and our risk management team suggests you focus on these claim drivers.

(1) AT-FAULT AUTO CLAIMS – Commercial Auto remains at the top of our list. While your Workers’ Compensation coverage will protect your drivers and other employees in a vehicle, the risk remains high particularly if pedestrians are involved. Over the past decade, advances in handheld devices and telematics have lessened the number of distracted drivers, but It’s still critical to screen and train your team on auto safety to minimize potential incidents.

(2) SEXUAL ABUSE CLAIMS – These claims are low frequency but can be catastrophic to your organization and its reputation. From childcare centers and food banks to homeless shelters and group healthcare homes, organizations that serve children, developmentally or physically disabled individuals, or the elderly and infirmed face unique risks that can leave them vulnerable to claims of sexual abuse or molestation.

(3) FAILURE TO PERFORM – Professional Liability coverage, often referred to as Errors & Omissions (E&O) insurance, protects your organization against claims of malpractice. Most of these claims stem from the simple premise that your organization failed to do what you were hired to do for the claimant. By developing clear procedures that are in sync with communication materials and staff training, you can help minimize this risk.

(4) SLIP & FALL – General Liability is sometimes referred to as “slip & fall” coverage as it remains the number one cause of General Liability claims today. These are specific to outside or third-party claimants (clients, visitors, vendors, etc.) who may fall and hurt themselves on your property. Loss control services can identify which areas of your property are most susceptible to such falls to help minimize these claims.

(5) HOME HEALTH SERVICES – As the demand for home health care continues to grow, you need to be aware of the physical injury risks to employees while caring for patients. Moving a patient from a chair to bed to bathroom to kitchen can cause the split-second decision on whether to allow a patient to fall, or risk injury by awkward adjustments. Proper training and positioning can help minimize this risk.

(6) DISCRIMINATION – Claims of discrimination and wrongful termination issues are part of your Employment Practices Liability coverage. You can help minimize these issues by having policies, standards, evaluations and procedures in place.

This is not meant to diminish the need for Cyber Liability and Directors & Officers Liability (D&O) as these too are of concern. In addition, the cost of litigation and jury awards have increased dramatically, which in turn impacts the outcome of every potential claim. Often referred to as “Social Inflation,” this spike has forced some insurance companies to raise premiums in order to afford the court awards issued against their clients.  Your best option is to take steps to minimize the frequency and severity of claims.

If you’d like to discuss your risk profile and coverage needs, and what loss control measures may be available to your organization, please reach out to us today.

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