Title: Nonprofit Insurance
1Nonprofit Insurance The Basics
- Presented by
- Colleen Lazanich, CIC CRM
- with Debra Chargois-Butler
-
www.CalNonprofitsInsurance.org 888.427.5222
2About CalNonprofitsCalifornia Association of
Nonprofits (CalNonprofits) is a statewide
membership organization that brings nonprofits
together to advocate for the communities we
serve.About CalNonprofits Insurance Services
(CIS)CIS is a wholly-owned insurance subsidiary
operating since 1984, providing risk management
and insurance coverages to thousands of
California nonprofits.
www.CalNonprofitsInsurance.org 888.427.5222
3Agenda
- Most Common Risks
- What is Insurance and Why do I need it?
- Insurance Coverages
- Property/Casualty
- Employee Benefits
- How to Shop for Insurance
- Resources
www.CalNonprofitsInsurance.org 888.427.5222
4 Most Common Risks
- Injuries to clients, employees, volunteers, and
the public - Damage to property
- Failure to provide services
- Employment practices
- Theft/Fraud
- Legal/contractual requirements
- Unique to your operations
www.CalNonprofitsInsurance.org 888.427.5222
5 Managing Risk
- Identify the risks
- Transfer/Share the risk
- Insurance Company
- Contractual Transfer (Mutual aid agreements)
- Waivers
- Mitigate or reduce risks
- Risk Management programs (safety programs,
inspections, committees, etc)
www.CalNonprofitsInsurance.org 888.427.5222
6Property/Casualty Insurance
- Commercial General Liability
- Property (Inland Marine, Catastrophe, Equipment
Breakdown) - Automobile Liability (Hired/Non-Owned Auto)
- Professional Liability (Errors Omissions)
- Sexual Physical Abuse/Molestation
- Directors Officers Liability
- Cyber Security Liability
- Excess/Umbrella Liability
- Workers Compensation
www.CalNonprofitsInsurance.org 888.427.5222
7Liability Coverages
Commercial General Liability covers bodily
injury and property damage to third parties.
Usually includes Personal Injury, Advertising
Injury, Medical Payments, and Employee Benefits
Liability Professional Liability (Errors
Omissions) covers errors in providing or
failing to provide professional services Sexual
Physical Abuse/Molestation covers bodily injury
due to sexual or physical abuse Directors
Officers Liability covers decisions made by the
board of directors or other covered officers. Can
include Employment Practices Liability Cyber
Security Liability covers damages caused by
hackers or other breaches of confidential
information Excess/Umbrella Liability provides
higher limits of coverage above other
policies Workers Compensation required by law
to protect employees from injury, illness or
death on the job, can also include volunteers
www.CalNonprofitsInsurance.org 888.427.5222
8Property Coverages
Property Coverage covers your assets
buildings, business personal property and
business income Inland Marine covers mobile
property or property that needs enhanced coverage
computer equipment, signs, theater equipment,
cameras, accounts receivable, valuable papers,
etc... Crime Employee Dishonesty (Fidelity),
Fraud, Monies Securities, Robbery/Burglary Equip
ment Breakdown covers mechanical breakdown of
equipment also called Boiler Machinery
Catastrophe Insurance Earthquake, Flood, and
Difference in Conditions coverage.
www.CalNonprofitsInsurance.org 888.427.5222
9Automobile Coverages
Auto Liability covers bodily injury or
property damage caused by ownership or use of
autos Medical Payments covers medical bills
regardless of fault for driver and passengers
will not cover if Workers Compensation
applies Auto Physical Damage covers physical
damage to the scheduled vehicles Collision and
Other Than Collision Hired Auto covers
liability for vehicles that are rented/borrowed
(not from employees or volunteers) can include
physical damange Non-owned Auto covers the
agencys liability for vehicles that are
operated/owned by employees or volunteers Optional
Coverages Rental Reimbursement, Towing,
Volunteers as Insureds, Drive Other Car
www.CalNonprofitsInsurance.org 888.427.5222
10Employee Benefits Insurance
- Group Medical Insurance
- Group Dental/Vision Insurance
- Group Life Insurance
- Group Disability Insurance
- Group Acupuncture/Chiropractic Insurance
- Group Long Term Care Insurance
- Flexible Spending Accounts/Health Savings
Accounts - Employee Assistance Programs
- Wellness Programs
www.CalNonprofitsInsurance.org 888.427.5222
11 Employer Health Insurance Under ACA
Is Employer Health Insurance Mandatory? Less
than 50 employees NO Requirement 50 or more
employees Play or PAY (penalties for employers
with 50 99 employees began in 2016)
www.CalNonprofitsInsurance.org 888.427.5222
12 Employer Mandate Penalty
If you have 50 employees, unless you offer
qualifying/affordable coverage to ALL full-time
employees (working 30 or more hours) and their
children, if even one employee goes to the
Exchange and receives a subsidy for coverage you
will face a penalty. Which penalty youll pay is
subject to a number of factors including whether
you offer coverage at all, what of your
full-time employees and their dependents you
offer it to, whether its qualifying coverage,
and whether its affordable.
2000 per every full-time employee (2015 minus
first 80 employees) (2016 minus first 30
employees)
3000 for each full-time employee getting a
subsidy
OR
PENALTY 1
PENALTY 2
www.CalNonprofitsInsurance.org 888.427.5222
13 Employer vs. Individual Plans
- Benefits of offering employer-sponsored health
insurance include - Recruiting and retention tool
- Employer plans still have better coverage for
less cost - Tax-free benefits for employees
Employers who reimburse employees for individual
health plans face a 100 a day or 36,500 per
year, per employee tax. This rule applies to all
employers, but the fine itself is only levied on
organizations with 50 or more full-time
equivalent employees.
NOTE
www.CalNonprofitsInsurance.org 888.427.5222
14 Employer-Sponsored Plans
Employer Compliance Requirements You must
follow ERISA, state and ACA laws or face
penalties Provide documentation to all plan
enrollees and new hires ? Summary of
Benefits Coverage (SBC) - provided by health
plan carriers ? Summary Plan Description
(SPD) document that describes rights and
benefits under your benefit plans. Employers are
responsible for creation. ? Provide Notice
of Exchange and mandatory ERISA notices (womens
health rights, right to designate providers,
etc.) New employee waiting period
restrictions ? May not exceed a maximum of
90 days Medicare Part D Notices ?
Notifies Medicare-eligible participants whether
your group plan meets prescription drug coverage
minimums
www.CalNonprofitsInsurance.org 888.427.5222
15 Buying Tips
- Work with a trusted and knowledgeable insurance
agent - Compare plans from different carriers
- Dont be afraid to ask questions
- Know your budget
- Is Covered California a good option for
- your organization?
- What is important in a plan offering
- to you?
www.CalNonprofitsInsurance.org 888.427.5222
16Resources
- Nonprofit Risk Management Center
- Glossary - https//www.nonprofitrisk.org/library/g
lossary.shtml - CalNonprofits Insurance Services website
- Webinars
- Client portal
- Carrier Website often overlooked source of
excellent loss control and risk management advice -
www.CalNonprofitsInsurance.org 888.427.5222
17How to Shop For Insurance And Get the Best Deal
- Find an insurance broker that knows nonprofits
- Choose a broker before going to market
- Ask your broker to shop carriers a good
nonprofit broker will have access to all
nonprofit markets - Not all insurance policies are created equal
review your policy with your broker - Consider higher deductibles to save money
- Determine your essential and optional
insurance coverages - ? Workers Compensation
- ? General Liability or Package
- ? Directors Officers
- Dont underestimate the importance of good risk
management
www.CalNonprofitsInsurance.org 888.427.5222
18Questions?
Colleen Lazanich, CIC CRM colleen_at_cal-insurance.or
g (831) 824-5002 Debra Chargois-Butler debra_at_cal
-insurance.org (888) 427-5224 X1002 Check out
our on-demand webinars at www.calnonprofitsinsuran
ce.org for more information and tools to
introduce a loss control program in your
organization.