What is the minimum information you need to provide a quote?
At a minimum, we need an application and financial statements. We can quote from any carrier's application. However, actual coverage will be subject to receipt and review of an original, properly completed CNA application. Since premium rates are based on an applicant's financials, we cannot quote without them.
Are all non-profit organizations and associations eligible for coverage in your program?
No. Certain classes of business are ineligible for coverage including risk retention groups, childcare/daycare facilities, bank clearinghouses, elder care/retirement homes, condo/homeowners associations, labor unions, schools and colleges, adoption agencies, churches, and controversial social/political organizations (environmental activists, right to die, civil militia, right to life/abortion rights).
What is the difference between Directors & Officers (D&O) coverage and Non-Profit Organization/Association Professional Liability (APL) coverage?
Directors & Officers, or D&O coverage, is industry shorthand for the very broad association professional liability policy. The Non-Profit Organization/Association Professional Liability policy covers not only the directors and officers of an organization, but also the organization itself (the "entity"), employees, volunteers, trustees and committee members. It is much more than just D&O coverage.
Why does a non-profit organization need Professional Liability insurance coverage?
Non-profits are not immune from lawsuits simply because they are working for a worthy, charitable cause. Also, remember that non-profit does not mean unprofitable or poor. Some well-funded non-profit organizations are targets for litigation simply because of their perceived deep pockets.
Professional Liability policies provide broad protection for alleged wrongdoing related to the management and administration of an organization. Insurance helps protect an organization's assets so its charitable mission can continue. Having to pay out of pocket for legal defense and settlement would significantly drain the financial resources of most non-profits.
What kinds of claims are made against non-profits that could be covered by Professional Liability Insurance?
Subject to the terms, conditions and exclusions of an actual policy issued, covered claims could include the following:
- Fraud, unfair competition
- Employment discrimination, sexual harassment, wrongful termination
- Copyright and/or trademark infringement
- Libel and slander
- Membership discrimination
Won't the Volunteer Protection Act protect non-profits from litigation?
In a word, no. In most cases, the Volunteer Protection Act (VPA) and similar laws only protect volunteers, not paid employees, officers or the organization (the "entity") itself. Furthermore, these laws offer no protection for employment claims considered to be federal offenses (such as sexual discrimination).
|
 |
