When Companies and Non-Profits provide services to children, individuals who are differently-abled, or even the elderly – poses an increased risk of Abuse and/or other allegations against them.
Your general liability policy can help with injury or damage claims – like a slip-and-fall claim or property damage that a volunteer accidentally causes during a donation pickup – but it expressly excludes claims of abuse or molestation. That means your nonprofit would need to pay out-of-pocket for the defense and legal fees, which could quickly destroy your entire operations budget.
One way of managing this risk is to consider purchasing a specific Abuse Liability insurance policy to cover the exposure, or specifically dealing with insurers that offer the coverage in combination with the Commercial General Liability coverage. There are, however, only a few markets willing to offer this type of coverage, and is dependent upon the business or non-profits operations and documentation.
Who’s at risk for an abuse allegation?
Your nonprofit or business is at risk if you offer services that involve any contact with youth populations. This includes:
- Churches and religious organizations
- Child care centers
- Sitter services
- Arts and cultural organizations
- Child and family services
- Counseling groups
- Sports and recreation clubs
- Organizations that serve the disabled
- Rehabilitation centers
- Youth organizations
How Getting An Abuse Liability Quote Works
To obtain quotes on your behalf, we will need an Abuse Liability application, as well as a copy of the company’s Policy & Procedures manual. The insurers will want to know a variety of information about the company’s processes, including but not limited to:
- Qualifications/training of staff
- Hiring practices
- Security checks done on employees and volunteers
- How allegations are to be handled and by whom.
There must be clear direction in the policy as to what steps are to be taken if an employee or volunteer is advised of some type of abuse.
Then, we use all of this information to obtain quotes for this coverage on your behalf.
While this seems like a lot of work, it’s a very good risk management process to help identify expectations of operations in this industry. It also is designed to help keep everyone as safe from allegations as possible. All of this documentation may seem intimidating, especially for small or new organizations starting out. But never fear, we have some sample resources available – so you can start with a template and customize where you need to. From there you can review with a Human Resources Professional and even your Corporate lawyer.
Abuse Liability Insurance is Part of Responsible Risk Management
Seeking abuse liability insurance coverage doesn’t signal a problem with your organization – it signifies responsible risk mitigation planning. Some abuse and molestation policies include risk mitigation training resources and other value-added perks to boost your organization’s awareness. Employee education enriches prevention and improves operations, but it also shows a commitment to safety.
Get a confidential quote with us
We know it might be hard to talk about, or even think about, but potential abuse and molestation claims are a risk liability exposure that many nonprofits, churches and schools face. You’re our valued customer: We’re here to help protect your operations and mitigate your risk exposure.
For more information about Abuse Liability coverage, do not hesitate to “Collis“.