Common Insurance Obstacles Nonprofits Face

The nature and business goals of nonprofit organizations are unique; therefore, their insurance coverage must be too. Nonprofits employ income-reliant individuals while also facing obstacles such as donor retention, stewardship, and volunteer liability all while championing for a worthy cause. And with different organizational goals also comes different requirements for insurance coverage. In order to provide the appropriate coverage, insurers must understand the key trends in the nonprofit sector as well as the individual needs of each nonprofit. In an effort to highlight the challenges faced, a report was published that surveyed 200 nonprofits about their biggest challenges when it comes to selecting insurance policies. Here are some of the top challenges faced.

FINDING THE RIGHT PRICE

While there are some nonprofits that have extremely high revenues and successful executives, they are not intended to make people rich. Just like a small business, one liability claim can wipe out an entire organization. Finding an affordable policy for a nonprofit that will also help it come out on top after a liability claim can be nearly impossible without the proper broker. On top of this, nonprofits face more risks due to the diverse settings in which they pursue their mission. Organizations that work with children, youth, and social services are seeing the sharpest increases in premiums due to a nationwide upsurge in claims.

According to the report, the number one reason that nonprofits will change their insurance provider is because of a significant price increase. To help mitigate the cost of coverage and give insureds more value for their money, insurers often give amenities to nonprofits. These services might include group purchasing discounts, background checks for prospective employees, and consulting services. Working with a broker who deeply understands your organizations specific needs is critical to securing the correct coverage for your mission.

UNDERSTANDING THE POLICY AND GETTING THE RIGHT COVERAGE

In order to understand what types of coverage to purchase, nonprofits must be aware of all their risks, which can vary depending on what types of populations they serve. The use of volunteers also brings different levels of liability exposure. Volunteers can be more prone to injury if they do not know proper procedures and typically possess less loyalty to the organization than a standard employee. These types of risks can be covered by General Liability Insurance to defend against third-party claims.

No two nonprofits have the same exposures, but a needed area of coverage for all organizations is Directors and Officers Insurance. Without D&O insurance, board members can be held responsible for funding lawsuits with their own personal assets. Forty-one percent of nonprofits indicated confusing policies as the reason they would not select a certain coverage, which is why partnering with a specialty broker who has experience working with nonprofits is critical to be properly covered.

RETAINING DONORS

Donor retention is a common issue for many nonprofits. Not only is it difficult to attract donors, it is even harder to keep them coming back. The coronavirus pandemic has only made this task more challenging, as all in-person fundraising events had to be made into virtual events where many organizations did not see the same turnout they had the year before. Recognizing this, insurers know that their nonprofit clients base a higher value on the integrity of their relationships than for-profit companies do. While an ever-changing market and other factors make it nearly impossible to determine a recipe for perfect coverage, insurers are working to identify specific trends that cater to the unique goals of those who fight for the greater good. And for that, we applaud them.

When looking for insurance for your nonprofit, it is especially critical to have a broker who specializes in nonprofit needs. Hawley and Associates thoroughly understands your operations and can clearly and effectively articulate your needs to insurers. We work by your side to navigate the insurance marketplace and secure the best coverage at a price your organization can afford. Contact us or request a quote to speak with one of our specialist brokers on how we can best protect your mission.

4th Quarter Newsletter ~ Happy Holidays from Hawley & Associates!

 

Please click here to enjoy our holiday newsletter! https://conta.cc/3ofx1rs

Life After Lock-down: Going Back into the Office

With so many phrases and terms being thrown at us every day relating to COVID-19, it’s enough to keep our heads spinning for a while. The most prominent term being discussed is social distancing – the entire world now recognizes the importance of staying six feet apart from one another.  Even though our entire planet is going through this crisis together, we are all in very different stages of pandemic life. But as we begin to visualize life after COVID-19 and re-emerge into society again, we need to start thinking about the new normal and how we will adjust. The “six-feet rule” isn’t going away anytime soon and we must all come to terms with how critical it is to normalize this guideline into everyday life.

Government-mandated lock-down orders to help contain the spread of the virus have radically changed how and where people work, with millions switching from the office to the dining room and meetings moving to video conference. As restrictions are relaxed, offices are being redesigned to minimize transmission risk and prevent a second wave of coronavirus cases. Imagine one-way corridors, buffer zones around desks, and clear plastic screens to guard against coughs or sneezes becoming the new office standards after stay-at-home orders have been lifted.

International real estate company Cushman & Wakefield has come up with a workplace design concept to help initiate the new model of office life. The concept uses social distancing guidelines to keep areas around desks empty. A prototype in the company’s Amsterdam office shows clients how spaces can be newly configured. Changes could be hard to adapt to for workers who are used to the social interactions in modern open-plan offices, and research shows that the more isolation that employees experience, or perceive, has a negative impact on their satisfaction with work and overall mental well-being.

Employers are seeing the immense benefits of remote working during the pandemic and some companies, like Nationwide, have already taken the plunge to make it a part of their permanent work culture. Many companies are performing much better than they predicted at the beginning of the crisis, with employees stating they are getting more work done, feeling more productive, and managing a better work-life balance.

When and if you return from remote work, let’s acknowledge that there are big and small adjustments we can make to improve sanitation and safety in the workplace. While the full impact of COVID-19 on work and the workplace has yet to be determined, it is clear the pandemic’s lingering effects will leave a trail of uncertainty as we navigate a new normal. A silver living of our forced isolation is that is has given us a lot of time to think more strategically about our environments. Let’s use this time to make them better. 

May is National Foster Care Month

May is National Foster Care Month and we want to take time to acknowledge the foster parents, family members, volunteers, mentors, policymakers, child welfare professionals, and other members of the community who help children and youth in foster care find permanent homes and connections.

With over 400,000 children in the foster care system at any given time, and a new child placed into care every 2 minutes, the need for support services, essential items, and foster parents is high. National Foster Care Month shines a light on these children and points us all in the direction of solutions.

We would like to share some inspiring real-life stories and raise awareness of the need for strong, collaborative communities that help keep families together.

https://www.childwelfare.gov/fostercaremonth/reallifestories/narratives/

Is Compliance Really the Goal of Childhood Behavior?

Compliance is a word that is used regularly in the world of behavior. It’s written about in Individualized Education Programs, it’s used as a goal when students have behavioral episodes, and data is collected on how often it does or does not occur. Even in personal interactions with kids, such as with our own children at home, we often place a more significant weight on compliance than we do decision-making.

“Listen and obey.”

“Do as I say.”

“Because I said so.”

“Don’t argue with me.”

Think about the kind of message that is sending kids. Are we conveying a message that obeying is more important than making decisions or thinking critically? When compliance is the primary focus, we’re instilling in kids’ minds that the lesson to be learned is how to follow instructions. And while that is a crucial life skill all must learn; it must also be taught alongside the evaluative process. Some of the most influential people in history have only made an impact because they refused to blindly follow the demands of authority figures in unjust moments. Without their critical thinking, which led to their active disobedience, we never would have had the social progress brought about by Martin Luther King, Jr., Rosa Parks, Susan B. Anthony, Malala Yousafzai or Nelson Mandela.

Focusing solely on pure obedience, or working entirely toward compliance, steals a child’s ability to develop critical thinking skills. Those critical thinking skills are what kids use to keep themselves safe. If that instinctual willingness to disobey is completely suppressed, kids are less likely to report someone who is abusing them, less able to interpret their own fight-or-flight instincts in emergency situations and less willing to create significant social changes in their communities.

So how do we go about instilling these crucial traits while also avoiding argumentative and entitled behavior?

It starts by giving kids options. Instead of telling kids what they can and cannot do, try laying out several options out in front of them and asking what would happen if they chose each option. Help them in making the connection between actions and consequences and they in turn will become more confident in making the right decisions. Kids are more willing to make decisions that we give them credit for.

Oftentimes, when kids disobey or make “bad” choices, it’s not because they want to be harmful or disruptive. It’s because they have not connected their actions to the correct negative consequences, yet. It’s the job of parents, teachers, coaches and advocates to help kids in making those connections, giving them opportunities to learn by trial and error, and helping them process scenarios they might not yet be mature enough to process on their own.

The Uncertainty of the Earthquake Insurance Market

The earthquake market has moved onto unstable grounds as insurers and alternative capital investors demand higher returns on their capital. Over the past 20 years, the earthquake insurance market has narrowed down significantly, with many insurers leaving the market entirely, while others refuse to issue new policies in certain high-risk areas.  Even among those still willing to sell coverage, stricter underwriting standards make some types of dwellings ineligible for coverage.

Those who can obtain coverage find they are required to “self-insure” to a much greater extent than in the past. Rate increases have intensified over the last year, with deductibles up to 20 percent of the dwelling value being more common than not. Buyers should expect higher prices this year for the same coverage.

In an uncertain market, its not a matter of if, but when the next big earthquake hits. Being proactive is key to obtaining the best results and getting an early start on renewals is crucial. Buyers who can provide better and more detailed information on their risks can expect a higher chance of acceptance from underwriters. Make sure you have a knowledgeable broker that has broad access to markets across the industry, so they can obtain a broader range of quotes and help insureds find the coverage that meets their goals.

If you have any questions or are looking for quotes on earthquake insurance, please contact us and we will be happy to serve you.

We Are In This Together! Hawley & Associates 1st Quarter Newsletter

Happy Valentine's Day!

Hawley & Associates' 4th Quarter Newsletter - Why Businesses Should Prepare Now For A Hardening Insurance Market

Please enjoy Hawley & Associates' 4th Quarter Newsletter.  This edition has some important information on changes in the insurance marketplace in 2020, that may affect your organization.

Please click link:  https://conta.cc/2Sf8PIS

Happy Thanksgiving from Hawley & Associates - Gobble Gobble!

All of us at Hawley & Associates would like to wish everyone a wonderful Thanksgiving!

Our Holiday Office Hours Are As Follows:

Wednesday, November 27th, 2019 - Closing at 2 pm (PST)

Thursday, November 28th, 2019 - Closed

10 Steps To Minimize Risk When Employees Work Remotely

Many organizations are embracing a remote working lifestyle and this trend is only rising. Nearly 3% of the US workforce works remotely in some capacity.  This is a 115 percent increase from 2005.

For all the benefits it may bring, it is opening your business up to an increased risk of a serious data breach.  There are many factors that can contribute to your business becoming the next victim of a cyber attack:

•           Inability to enforce security protocols
•          Remote workers risky behavior
•          Not adhering to security best practices
•           Sharing devices with family and friends
•           Not recognizing suspicious behavior

So, what can you do?

Cyber threats will always be a part of our reality, and cyber security has a hard time keeping up in this ever-changing environment.  If you have employees that work remotely, now is the time to take another hard look at the security of your data.  Here are 10 steps you can take to help minimize your risks:

1. Establish written company security protocols 
2. Restrict or limit the use of public Wi-Fi
3. Use a Virtual Private Network (VPN)
4. Raise awareness by educating workers on how to recognize suspicious behavior
5. Monitor company issued devices (check your state statutes)
6. Apply cloud services
7. Enable data protection software on all devices
8. Restrict employees use the internet and not to use device for personal reasons
9. Proper password management
10. Do not share devices with friends or family

Contact Hawley& Associates today for information on Commercial Cyber Insurance and how it can protect your organization in the event of a data breach.

Happy 125th Anniversary LABOR DAY!

This year we celebrate the 125th anniversary of the Labor Day holiday. Has it really been around that long?!

Labor Day officially became a federal holiday in June 1894 and was enacted to honor the American labor movement.  Oregon was the first state to make Labor Day an official public holiday.  By the time it became a federal holiday, thirty U.S. states officially adopted and celebrated Labor Day.

Labor Day has often been called "the unofficial end of summer". Many families take their yearly vacations around this time of year, just to have one last 'fling' before the kids go back to school and the season changes. 

So, here's to the hard-working American; the backbone of our country! Enjoy the long holiday weekend! 

Far and away the best prize that life offers is the chance to work hard at work worth doing. – Thomas Jefferson

Quote For The Day!

Exclusive WorldPro Insurance Program for Social Service Organizations

Besides offering tailor-made insurance programs designed specifically around your unique operations and exposures, Hawley & Associates offers the exclusive WorldPro Insurance Program.  It is the most comprehensive and cost competitive program offered to social service organizations today.  Since it’s inception, WorldPro now insures some of the largest nonprofit organizations in the country.

Program Highlights:

¨ High Limits (including abuse)

¨ Stand-alone Umbrella coverage

¨ Program will defend a negligence, error or omissions claim brought anywhere in the world, with      no limitation as to venue, change of venue or any other exclusion involving jurisdiction

¨ Special Defense Fund available to any employee wrongfully accused of abuse or molestation

¨ No territorial exclusions or restrictions

Hawley & Associates has been instrumental in introducing several new social service insurance programs to the market and we will continue to work hard to find even more markets and programs to bring down premiums for our clients and help you serve the under-served.

Contact us today for more information!

Wayne Hawley Giving Grant - Don't Miss Out!

The Wayne Hawley Giving Grant is exclusive to H&A clients that serve the social service and nonprofit community.

The grant is named in loving memory of Phil Hawley's father, Wayne Hawley, who was instrumental in the formation of Hawley & Associates, and a guiding force in making our agency the strong, dedicated and caring company it is today.

The grant is comprised of two individual grants in the amount of $5,000.00 each.

Click here for more information!

Deadline for applications is September 30, 2019!

Happy 4th of July from Hawley & Associates

Customer Satisfaction Is Our #1 Goal!

Insuring Your Foster Care Agency - Are Changes In The Wind?

The landscape is definitely changing when it comes to insuring your foster care agency. Many agencies are receiving non-renewal notices, or their premiums have increased substantially, even without a large claim history.  What is the reasoning behind these dramatic and sometimes very shocking changes?

Some contributing factors:

•          The high-risk factors associated with child welfare
•          Claims increasing in severity and frequency
•          Nonprofits are diversifying their services, thus increasing their exposures
•          Contracts are requiring higher limits, resulting in higher premiums
•          Changes in carrier appetites and the types businesses they will cover/not cover
•          Changes in policy forms

As a result, Carrier risk management requirements are being raised.  Creating a robust risk management program is imperative in controlling your losses, premiums and meeting carrier requirements.  Start by electing a risk management officer or mandated reporter, create a formal incident reporting program and reduce and manage a social worker’s caseload/workload.  This is a great place to start.

So, what is your foster care agency to do in these changing times? Contact a specialist.  Hawley& Associates specializes in hard-to-place risks, including adoption & foster care.  Our broad access to specialized markets and innovative risk management tools allows us to partner in and empower mission!

May Is National Foster Care Month!

May is National Foster Care Month!

Hawley & Associates is honored to partner with our foster care clients' commitment of making the world a better place for our countries foster children.

These inspiring real-life stories from families and professionals made our day!  Help us raise awareness by sharing these empowering experiences.

https://www.childwelfare.gov/fostercaremonth/reallifestories/