Tips and Tools on Liability Insurance:
Why Do Affiliates need Insurance? In order to protect the financial and legal interests of your NAMI Affiliate, it is important to have appropriate insurance coverage. Even an all volunteer Affiliate can be held liable for medical expenses if someone slips and falls at a NAMI Family-to-Family class. Also, it is a requirement of Standards of Excellence for affiliates to carry Liability Insurance. However, there is no tight time limit for this- affiliates are to be actively engaged in the process by December 2012. It is time to look at your budgets and determine when you might be able to commit to this expense which would occur every year. The standards require two types of insurance: Liability, Directors and Officers. We're an all volunteer organization, why do we need to pay for insurance?
The Volunteer Protection Act is a federal law that is intended to protect volunteers
from liability for negligence that occurs within the scope of their work for the organization. It does have limitations and provides no protection for the organization itself. NAMI has determined that this is not sufficient protection and thus requires paid coverage.
What does Liability Insurance Cover?
- Covers: Organizations, Employees, Volunteers, and Board Members
- Liability Covers Against: Bodily Injury, Property Damage, Personal Injury
- Coverage includes: Defense Cost, Settlements, Limits typically $1,000,000 per occurrence/ $2,000,000 Aggregate
What types of claims are covered with liability insurance?
1. Errors & Omissions that lead to Monetary Damages
Ø Actual or Alleged error, misstatement, misleading statement, act or omission, neglect or breach of duty
2. Employment Practices Wrongful Act
Ø Sexual Harassment
Ø Discrimination
Ø Wrongful Termination
3. Personal Injury Wrongful Act
4. Third Party Wrongful Act
Types of insurance coverage a NAMI Affiliate should obtain and maintain.
Ø General Property and Liability Coverage
Property insurance protects the NAMI Affiliate's physical assets, such as a building and its contents. (of course, no affiliates really have buildings!) Liability insurance protects from losses resulting from a real or alleged wrongful action on the part of the insured whether it be the directors,officers, staff, volunteers, or the organization itself. Property
and liability coverage also may be extended to include off premises activities such as seminars, training, conferences, and so on.
Ø Directors and Officers Insurance
Sometimes referred to as Association Professional Liability coverage, this insurance serves to ensure designated officers and directors of an organization insurance coverage that protects the individual from personal liability as a result of decisions or situations that occurred during the officer's term in office.
What will the agent need from you to determine the cost for D & O and Liability for your
affiliate?
Ø List of Board of Directors, Employees, Volunteers
Ø How long affiliate has been in existence
Ø How much coverage
Ø Purpose
Ø May ask for financial statement
Two Options for Coverage for your affiliate:
1) NAMI D&O Liability: available to all State and Local NAMI Affiliates
Ø Organizations with No Employees
· Limit: $1,000,000
· Retention: $0
· Premium $575
Ø Organizations with Payroll under $100,00
· Limit: $1,000,000
· Retention: $0
· Premium: $750
Contact: J. Andrew Cooley, AAI, CIC, CRM- Programs Director
Cooley & Darling Insurance Agency
PO Box 1228
Haymarket, VA 20169
Phone: (703) 881- 0133
Fax: (703) 659-0024
Email: acooley@cd-insure.com
www.cd-insure.com
2) NAMI NC had mentioned trying to get a deal with our agent whereby costs might be lower by signing on all our affiliates. Following a call to our agent, we learned that the prices are just so low already per affiliate, because our entities are so small, that there is no possibility of a group discount. So each affiliate needs to call and get a bid.
Contact: Scarlett Morgan for a bid through the group that covers the NAMI NC office.
BB&T Insurance Services, INC
150 Government St.
Suite 1004
Mobile, AL 36602
Phone: (251) 438-9800
Fax: (2510 438-9805
Email: scarlett.morgan@bbandt.com
Action recommended: Call and determine the price to ensure your affiliate, share this information with the board, and think about incorporating it in your budget planning for 2013. Share what you learn with the state office.
Click here to see a power point on this issue prepared by NAMI:
We here to help! So be sure to contact Jeanine Klotkowski- jklotkowski@naminc.org or Brenda Piper- bpiper@naminc.org if you have any questions!
