Common Mistakes When Placing Social Services Insurance

Posted on: February 17, 2017 by Huntersure LLC.

Standard markets aren’t designed to manage the customized risks that social service sectors face. While there is no such thing as a one-size-fits-all policy, there are comprehensive Social Services Insurance Programs that are developed to specifically mitigate their unique set of exposures. However, for your clients who might be new to the insurance scene, share these common mistakes with them so they can ensure quality and comprehensive coverage. Remind them that specialized coverage is not easy to find, but these tips can help steer them in the right direction.

Forgoing cyber liability insurance.

Regardless of the industry, cyber-attacks are becoming more and more prevalent. Whether your clients have a small start-up social services operation or they are part of a larger entity, the truth is that no one is immune to these breaches. Especially if your clients accept donations through their website and collect customer data and store it in digital format, their organizations are at risk. Cyber liability insurance isn’t marketed to this industry as much as it should, but they are no less at risk for a breach.

Assuming transfer of funds are covered under crime insurance.

The illegal and unauthorized transfer of funds is not covered under crime insurance policies. While banks often reimburse individuals when it happens to their personal accounts, the same does not hold true for companies and organizations. Therefore, a separate policy needs to be purchased in addition to cyber liability and crime insurance for adequate coverage.

Assuming volunteer risk is protected under general liability.

Volunteers are the backbone to your client’s social service business. However, if they become injured on site, the suit wouldn’t be covered unless the organization is proven to be negligent. Volunteer coverage can also be added to a workers’ compensation policy, but this can have a negative impact on the nonprofit’s loss history and experience modifiers, potentially resulting in higher premiums. In addition, many workers’ compensation carriers do not cover volunteer injury claims. Therefore, a separate policy needs to be purchased for this, as well.

About Huntersure

Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We aim to provide exceptional, creative, and personalized insurance solutions to the members of the business world. To learn more about the professional liability products and protection we offer, give us a call at 646-751-3030.


Posted in: blog Social Services