PRODUCT: General and professional liability package for nonprofits
COMPANY: Nova Casualty
BEST RATING: A (Excellent), size XV
AVAILABILITY: Coverage is available through independent agents and brokers.
FOCUS: Many nonprofits serve vulnerable populations, such as children, the disabled and the elderly—which makes sexual abuse and molestation liability coverage critical.
These types of lawsuits are not extremely common, but they tend to involve large, high-profile settlements when they do occur, according to the Nonprofit Risk Management Center. And in addition to the accused employee or volunteer, these lawsuits often name organizations.
To manage these risks, Charity First offers insurance coverage that focuses on sexual abuse and molestation—in addition to social service professional liability, auto, umbrella, workers compensation, and directors & officers for nonprofit organizations.
“General and professional liability policies rarely cover these cases, and [sexual abuse and molestation liability coverage] typically has to be purchased separately,” points out Riley Binford, executive vice president, Charity First. “Charity First’s program automatically covers nonprofits when [they are] faced with a difficult sexual abuse and/or molestation claim.”
UNDERWRITING: Property and general liability includes coverage for sexual abuse and molestation, social service professional liability, crime and inland marine, automobile liability and physical damage, umbrella liability, workers comp and D&O.
General liability includes limits up to $1 million per occurrence and $3 million aggregate; sexual abuse and molestation coverage, with separate limits up to $1 million per occurrence and $2 million aggregate; social services professional liability coverage, with separate limits up to $1 million per occurrence and $3 million aggregate; veterinarians professional liability coverage; employee benefits liability coverage; special events coverage; and exclusive Charity First broadening endorsements.
Property includes coverage for buildings and personal property; replacement cost; an exclusive Charity First property enhancement endorsement that automatically provides more than 50 coverages, including $300,000 in business income and extra expense; building ordinance, including $100,000 in water/sewer backup and more; and systems breakdown and boiler.
Inland marine includes coverage for electronic data processing; cameras, videos and sound equipment; miscellaneous equipment; and commercial fine arts.
Automobile includes limits up to $1 million; liability covering “any auto”; hired and non-owned auto; medical payments; and additional coverage for employees and volunteers.
Coverage highlights for D&O include separate limits of liability for D&O and employment practices liability claims; defense outside the limit of liability on all claims; third-party sexual harassment and third-party discrimination coverage; an unlimited extended reporting period for former directors and officers; automatic coverage for volunteers; and a three-year policy option. Limits reach $5 million for EPL and D&O. EPL is an optional coverage which insureds may purchase in addition to D&O, but not on a monoline basis and the coverage may not exceed the D&O limit.
MINIMUM PREMIUM: $500.
TARGET: Small to midsize nonprofit organizations with premiums ranging from $500 to $500,000. Examples include art galleries, boys and girls clubs, chambers of commerce, social or civic clubs, community centers, counseling centers, organizations for developmentally disabled individuals, emergency shelters, food banks and distribution programs, foundations, group homes, job training programs, monasteries and convents, museums, performing arts groups, preschools, animal shelters, sheltered workshops, social service agencies, symphony and orchestra organizations, theater groups, thrift store operations, vocational and adult schools, and YMCAs.
COVERAGE TERRITORY: All 50 U.S. states.
CONTACT: Riley Binford, executive vice president; Charity First, 1255 Battery Street, San Francisco, CA 94111; 415-536-8438.
Ronimarie Acord is an IA contributor.
