- Completed and signed MiniCo social services application OR
Completed and signed MiniCo nonprofit application
(In some instances, we may accept supplemental “new business” applications from equivalent programs or standard carriers.)
- Completed ACORD application for lines solicited
- Currently valued company loss runs for this policy period plus two year’s prior
Additional Information (not required but very helpful):
- Target premiums
- Brochures, website links, or other information about the prospective organization
- Current audited financials or annual report
- Photographs of property locations
- Schedule of special events
Submit completed applications and supporting information to your underwriter. If you do not have an assigned underwriter, email your completed submission to email@example.com and include the prospect’s name and effective date in the subject line.
Tips for Soliciting a Nonprofit or Social Service Agency
How Do You Sell to Nonprofits and Social Service Agencies?
Compile a pipeline of nonprofit prospects in your community through a variety of prospecting sources, including Chambers of Commerce and personal networks. As you’re managing the relationships of this sales pipeline, be sure to understand the mission of each nonprofit you get to know. This will be critical in establishing trust and ultimately making the appropriate recommendations to the board.
Why Should You Look to Serve Nonprofit Clients?
- There are significant nonprofit prospect opportunities in every community which can go overlooked by competing brokers due to their unique needs.
- Nonprofits face unique exposures and are required to carry insurance to protect their assets and other interests.
- Many group buying programs have evolved to offer nonprofit members competitive pricing and coverage.
- Although they face unique needs, nonprofits have limited resources and need a trusted advisor (broker) more so than other segments of the insurance-buying economy.
Types of Nonprofits and Social Service Agencies
What Are the Potential Exposures and Insurance Related Concerns of Nonprofits?
- Financial protection from third-party lawsuits. Understand and communicate what might go wrong that can lead to a lawsuit including:
- Negligent client care by employees and volunteers
- Property damage
- Auto accidents
- Vicarious liabilities
- Misappropriation or mismanagement of employee benefits, financial activities
- Risk management concerns:
- Employee hiring and screening procedures
- Fund raising activities and events
- Contracts that are in place
- Special risk concerns due to the nature of the nonprofit’s operations. For example, child care, abuse exposures, housing, zoning laws, security, physical condition of buildings, etc.
Identifying Exposures for Nonprofits
What is generally at risk can be categorized as follows:
- Physical damage to owned buildings, equipment, computer data, bank accounts, and vehicles.
- Personal injury to or injury caused by employees, clients, volunteers, board members, and the general public.
- Loss of income generated through fundraising, sponsorship funds, grants, and sales
- Liability – To protect the nonprofit for bodily injury and property damage. A big issue under the liability insurance is the ability to cover sexual harassment, which includes child molestation and physical or sexual abuse.
- Property – To cover loss of property/assets of the organization such as damage to facilities, owned and rented equipment, property/inventory related to fundraising programs and other assets.
- Non-Owned Auto – To protect the organization if a volunteer or employee is driving their car on behalf of the insured and an accident occurs.
- Professional Liability – To protect the organization when it has employees or volunteers who provide specialized services and have direct contact with clients, patients, or customers in a professional capacity such as social workers, counselors, case workers, registered nurses, psychologists, and physicians.
- Fidelity/Crime – To protect the organization against theft of funds, forgery, robbery, or burglary.
- Directors and Officers (E&O) – To protect the board and certain employees for their defense and loss due to failure to implement appropriate policies, controls, and procedures. Important issues include wrongful employment or termination, discrimination, and sexual harassment (which may not be included under the general liability).
- Automobile – To protect the insured for accidents that occur while their employees/volunteers are utilizing the insured’s vehicles for transportation of clients, transporting goods, and running errands.
- Special Events – To cover certain events and fundraisers such as book fairs, walk-a-thons, and social gatherings.
Coverage Concerns of the Use of Volunteers
Due to financial constraints, many nonprofits use volunteers to deliver services. When assessing a nonprofit’s exposures, the agent should obtain information on the following:
- Number of volunteers used in the operation
- Pre-screening and eligibility-for-service protocols
- Management and supervision
- Duties they perform
- Auto exposure (identify whether the volunteers drive the insured’s vehicles or their personal vehicles on behalf of the insured)
Many nonprofits rely heavily on the use of volunteers in their service delivery and to limit and manage expenses. Volunteers have to be specifically addressed in policy forms to avoid coverage gaps. Policy forms have to be broad enough to cover affiliated foundations, chapters, etc.
Thorough hiring and screening practices should be in place to guarantee that the insured is properly screening all potential individuals who will have direct contact with their clients. Besides the initial employment application, interview, and securing of references, the nonprofit should be conducting fingerprinting (especially when dealing with children) and background checks on all new hires.
Where necessary, the insured should verify that all staff members are degreed and experienced in the positions they hold. An adequate ratio of employees/staff to clients should exist to ensure that clients/consumers of the nonprofit are adequately supervised at all times.
Accommodate Potential Coverage Gaps and Special Coverage Concerns
- Property valuation
- Business income
- Broadening endorsements (property, auto, general liability, professional liability)
- Volunteers as additional insureds (general liability, professional liability)
Identify Coverage Needs or Potential Gaps in Coverage That Our Program Addresses
- Commercial property coverage
- Commercial general liability
- Commercial auto liability and physical damage
- Non-owned and hired auto coverage
- Sexual or physical abuse or molestation coverage
- Sexual misconduct coverage
- Employee benefits liability coverage
- Professional liability coverage
- Crime coverage
- Employee dishonesty
- Directors and officers liability
- Umbrella/excess coverage
What Are The Advantages of Working With an A.M. Best "A" Rated Carrier?
- Financial stability
- Claims-paying ability
- Adequate protection of the insured’s operations
Scope of Opportunity in Nonprofit
Some coverages may not be available in all states. Coverage limits vary by state.