Nonprofit Insurance Coverage Summary

Liability Plus is available to most local Chapters or Clubs with a master organization wishing to purchase this liability protection. Coverage is extended to include any Nonprofit member or volunteer.

Nonprofit Insurance Liability Plus provides General Liability coverage for activities or events sponsored by your Nonprofit Chapter. This coverage includes a $1,000,000 Per Occurrence/$2,000,000 Aggregate Limit for your Nonprofit. Coverage is included for the following:

• Bodily Injury Liability
• Property Damage Liability
• Personal Injury Liability
• Advertising Injury Liability
• Products Liability
• Host Liquor Liability
• Fire Legal Liability

The United States, its territories and possessions, Puerto Rico and Canada are included in the coverage territory for this policy.

The policy period is one calendar year. During the application process, your Nonprofit Chapter may choose the effective start date of the policy. Following the choice of start date, the policy will expire on the same date the following year. If leadership roles are changing within your Nonprofit group, be sure that insurance renewal is a task delegated to an incoming officer to avoid a potential lapse in insurance coverage.

Every time you name another entity on your policy, you have agreed to share your limit of liability, and to defend that other entity should a lawsuit arise. Other community organizations are considered separate legal entities that cannot be properly protected under the same insurance policy. Do not let any other entities or separate organizations use you for your insurance. Protect your insurance and use it only for your Nonprofit Chapter or Club.

Concessionaires and commercial vendors provide for-profit attractions such as a food vendor. These vendors will operate on behalf of your local Chapter for a percent of the profits or for a prearranged price. These concessionaires and vendors are independent contractors. Your local Club or Chapter is protected against claims or suits arising out of the operations (unless excluded) of these independent contractors. However, the independent contractor is afforded NO protection under the local Chapter or Club policy and should, for your protection, provide your local Club or Chapter with their own Certificate of Insurance. This Certificate of Insurance should show that the independent contractor/vendor has in-force liability insurance with limits of a least $1,000,000, and it should also name your local Chapter or Club as Additional Insured. The vendor may attempt to charge your group for the cost of the Additional Insured endorsement that must be added to their liability policy. Since the concessionaire will be earning a profit, your group may be able to negotiate this price. If the vendor is unable or unwilling to provide the Certificate of Insurance, you should consider finding another concessionaire or vendor who will.

Although our General Liability policy is quite broad, there are some exclusions usual to this type of liability insurance. The following is only a summary and is not all inclusive, nor does it alter or waive any of the actual policy language. There is NO coverage, , or coverage is excluded for losses or claims arising out of:

• Amusement device, inflatable, mechanical or motorized
• Athletics/Sports
  (Bowling, Golf Tournament, Free Throw Contest and Soccer Challenge Contest are O.K.)
• Owned Automobile liability/motorized vehicles
• Firearms/weapons/ammunition
• Fireworks/pyrotechnics/rocketry
• Owned or full time occupancy of any premises or land
• Owned and/or Non-Owned Aircraft Liability
• Owned Watercraft Liability
• Workers’ Compensation

With years of experience gained from working with Nonprofit organizations, we have come to advise local Nonprofit Chapters and Clubs on ways to put on events that help reduce their exposure to accidents and losses. Listed below are some best practices, guidelines and tips to help your Club or Chapter put on safe and successful events throughout the year!

• Establish a maximum number of attendees for your event or activity
• Make sure there is adequate space, circulation routes, and clearly defined entrances and emergency exits
• If your event is being held outdoors, take ground conditions and site topography into consideration to help determine the best position for temporary structures such as tents, stages, or temporary signage
• If any tents or outdoor structures are used, be sure they are properly secured into the ground to prevent them from toppling over
• Tape off / mark areas that are out of bounds whether an event is indoors or outside
• Establish and agree on emergency procedures in case of an incident and be sure to designate qualified first aid volunteers
• If animals are present, be sure that they are closely monitored to prevent animal bites
• Use cable covers on all wires to prevent tripping accidents
• Have outside vendor attendants supervise the activities on equipment they supply
• Have any equipment that is supplied by an outside vendor inspected prior to the first use
• Be sure that any spills are cleaned up immediately and ensure that arrangements are made for clearing up and safely disposing of any trash left after your event or activity

Bonding Plus is available to various nonprofit chapters or clubs.

Bonding Plus protects your group against exposure to financial losses due to employee dishonesty, forgery, alteration, theft, disappearance or destruction. This policy has three coverages, each with a separate, per loss limit. An employee is classified as any elected officer, committee chairperson (whether elected or appointed), or any member of the organization acting as a volunteer. A brief description of the coverage follows:

Employee Dishonesty
Provides protection for the loss of money, securities and other property resulting directly from one or more fraudulent or dishonest acts committed by an employee (as defined above) acting alone or in collusion with others.

Forgery or Alteration
Provides protection for loss resulting from forgery or alteration of outgoing checks, drafts, promissory notes and similar instruments drawn against the Insured’s accounts.

Theft Disappearance and Destruction
Provides protection for loss resulting from theft, disappearance or destruction. This coverage is divided into two parts, each with its own separate per loss limit.

• Part A Loss Inside The Premises
  Provides protection for the loss of money and securities by the actual destruction, disappearance or wrongful abstraction thereof, within the premises. The definition of premises has been enhanced to include the interior of that portion of any building which is used by the insured while conducting business.
• Part B Loss Outside The Premises
  Provides protection for the loss of money and securities by the actual destruction, disappearance or wrongful abstraction thereof, outside the premises while being conveyed by a messenger, or while within the living quarters in the home of any messenger. The definition of messenger has been enhanced to include the Insured or any employee (as previously defined) who is duly authorized by the Insured to have the care and custody of the insured property outside the premises.

The territory of this policy is the USA, its territories and possessions, Puerto Rico and Canada.

The policy period is one calendar year. You may choose the effective date of your policy as it will expire the same day the following year. There is also a discovery period which extends beyond the expiration date of the policy. This discovery period is one year from the end of the policy period with the provision that the loss, or the occurrence or act that gave rise to the loss, occurred during the policy period.

• Keep checks in a safe and secure area
• Never pre-sign blank checks
• Have 2 signatures on all checks
• Look for missing or out-of-sequence checks
• Do not make checks out to cash
• Track all bills paid by keeping copies of invoices and matching receipts
• Review all bank statements and check records each month; review should be by someone who is not the treasurer
• Have an annual audit of records completed and an audit completed every time officers who handle money take office, particularly the treasurer
• Verify wire transfers
• Verify cash logs and always provide receipts along with bank deposit slips
• Make bank deposits the same day or next business day
• Have at least 2 people present when counting money and utilize a “Funds Received” form
• Maintain timely and complete financial information at all times
• Review the accounts payable, vendor, and donation lists to check for suspicious names or businesses
• Copies of tax forms filed should be included in the Treasurer’s, Secretary’s and President’s records
• Purchase Bonding Plus Insurance coverage for your group

Don’t be afraid to ask questions or assume you are the only one who does not understand a transaction. As a member or an officer, you have a responsibility to keep the organization healthy and your funds safe!

While you will find our Bonding coverage to be one of the broadest in the country, there are some specific exclusions usual to this form of crime insurance. The following is only a summary and is not all inclusive, nor does it alter or waive any of the actual policy language. There is NO coverage, or coverage is excluded for:

• Losses, the proof of which is dependent upon an inventory or profit and loss computation.
• Losses due to accounting or arithmetical errors or omissions.
• Moneys in coin-operated vending machines or amusement devices.
• Losses resulting from the use or sale of supermarket or other type of scrip.
• Cancellation Of Coverage For A Specific Employee(s). The employee dishonesty coverage contains a condition that immediately cancels any future coverage for any employee (as previously defined) upon discovery by the Insured, or an officer or director, of any dishonest act committed by that employee, either before or after becoming an employee of the insured organization. This condition is common to this type of coverage. Coverage is also excluded for any employee for whom similar prior insurance has been canceled.

Coverage is available to any qualifying Nonprofit Chapter or Club wishing to purchase this D&O liability protection. The following are Insureds under the policy:

• The group as an entity.
• Any Director; or Officer; or Trustee; or Employee; or Volunteer.

The policy provides Directors & Officers Liability insurance protection up to $1,000,000 per occurrence /$1,000,000 annual aggregate for decisions made by an officer, director, or board. Coverage is included for the following:

• Wrongful Act
• Error or Omission
• Negligent Act
• Misleading Statement
• Breach of Duty
• Employment Practices Liability

The territory of this particular policy is worldwide provided that the suit or proceedings are brought within the United States, including its territories and possessions, or Canada.

The time limitation of almost any insurance contract is defined by its inception and expiration date and time at some specific location. This limitation is also known as the policy period, which in this instance is one year.

There are some specific exclusions usual to Directors & Officers Liability insurance. There is NO coverage, or coverage is excluded for loss or claims arising out of:

• Unjust enrichment, obtaining profit or advantage to which the Insured was not entitled
• Any criminal, malicious, fraudulent, knowingly wrongful, or dishonest act or omission
• Bodily Injury (see Liability Plus)
• Property Damage (see Liability Plus)
• Personal Injury (see Liability Plus)
• Any intoxicating substance
• Securities Exchange Commission exposures
• Employee Benefit plans

Anyone injured while attending a covered, sponsored, or supervised activity or event.

Coverage is provided for medical expenses incurred up to the selected limit while attending a sponsored activity or event. Each accident has a $25.00 deductible.

The territory of this policy is the USA.

The policy period is one calendar year. You may choose the effective date of your policy as it will expire the same day the following year.

• Have the premises inspected prior to use
• Establish a maximum number of attendees for your event
• Make sure there is adequate space, circulation routes and emergency exits for your event
• Clearly define designated access routes
• Designated entrance and exit points
• Lock areas of building not in use
• Tape off / mark areas that are out of bounds
• Have a one volunteer to four children ratio when determining the number of supervisors needed
• Establish and agree on emergency procedures in case of an incident
• Have vendor attendants constantly watch the activities on equipment they supply
• Have equipment that is supplied by an outside vendor inspected prior to the first use
• Have first aid equipment ready and available on-site
• Designate qualified first aid volunteers for your event
• Make sure a telephone is available in case of emergency
• Use cable covers on all wires to prevent tripping accidents
• Be sure that any spills are cleaned up immediately
• Ensure that arrangements are made for clearing up and safely disposing of any trash left after your event

While you will find our Accident Medical coverage to be one of the broadest in the country, there are some specific exclusions usual to this form of Accident Medical insurance. The following is only a summary and is not all inclusive, nor does it alter or waive any of the actual policy language. There is NO coverage, or coverage is excluded for loss or claims arising out of:

• Sickness, disease or infections
• Intentional self-destruction or an attempt at it, or intentional self-inflicted injury while sane or insane (if a Missouri contract, while sane)
• War or an act of war, declared or undeclared
• Air travel unless the insured is a passenger on a regularly scheduled flight of a properly licensed commercial airline

This coverage is available to various Nonprofit Chapters and Clubs.

Property Plus insures the group’s property items, up to the specified value, against risks of direct physical damage. The following list includes some of the items which can be covered under a Property Plus policy.

• Cameras
• Coffee Makers
• Computers
• Copiers
• Film/Overhead Projectors
• Musical Instruments
• Office Equipment
• Other Items/Stock Held For Sale
• Posters And Signs
• Printers
• Popcorn Makers
• Meeting Equipment
• Snow Cone machines
• Sports Equipment
• Stocks Of Printed Material For Sale
• Storage Containers
• Tables And Chairs
• Telephone Equipment
• Theatrical Props
• Video Recorders
• Uniforms And Costumes

The territory of this policy is the USA.

The policy period is one calendar year. You may choose the effective date of your policy as it will expire the same day the following year.

While you will find our Property coverage to be one of the broadest in the country, there are some specific exclusions usual to this form of property insurance. The following is only a summary and is not all inclusive, nor does it alter or waive any of the actual policy language. There is NO coverage, or coverage is excluded for losses greater than the replacement value of the property or loss or damage caused by, or made worse by:

• Deterioration, inherent vice or latent defect
• Wear and tear
• Seizure or destruction of property by order of governmental authority
• Any weapon employing atomic fission or fusion or nuclear reaction or radiation, radioactive contamination, however caused
• War, including undeclared or civil war
• Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these