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What's Included in a Nonprofit Commercial Package

Bookmark and Share Your nonprofit organization specializes in serving and helping others. A lawsuit or other liability could inhibit your organization's ability to continue operations, though. You need a nonprofit commercial package with invaluable protection that meets your needs as you help others.  

What a Nonprofit Commercial Package Includes

The right insurance provides invaluable protection for your organization. Look for several types of coverage when shopping for a nonprofit commercial package.

  1. General Liability Insurance

    When visitors or clients are injured from a fall, slip or accident on your property, your organization is liable for medical payments and other damages. General liability insurance offers classic slip-and-fall coverage for any unfortunate accidents.

  2. Property Insurance

    Natural disasters, fires, vandalism and other risks can happen at any time. Property insurance pays for necessary repairs and minimizes operation disruptions to the property your organization owns or rents. This insurance can cover:  

    • Computers and accessories
    • Equipment and machinery
    • Fixtures, including carpeting and lighting
    • Inventory and supplies
    • Office furniture

  3. Auto Insurance

    Any time your staff or volunteers drive a company or personal vehicle for organization activities, your nonprofit is liable for accidents or damages. Purchase adequate auto insurance that includes liability and any coverage your state requires, such as personal injury protection or uninsured/underinsured motorist coverage.

  4. Product Liability Insurance

    Your nonprofit may sell products to raise funds for your cause. Examples include items your clients create or baked goods. Property liability insurance protects your organization financially if someone suffers an injury or other damages because of a product you sell.

  5. Directors and Officers Insurance

  6. Nonprofit organizations rely on the leadership expertise of directors and officers. These men and women could be sued for fraud, financial mismanagement or other things, though. Directors and Officers insurance covers defense and damage costs.

  7. Professional Liability Insurance

    When someone files a discrimination, mismanagement or sexual harassment lawsuit against your organization, the nonprofit is liable for related costs and damages. Professional liability insurance, also known as errors and omissions or malpractice insurance, is similar to Directors and Officers insurance but covers your entire organization, including staff and volunteers.
In addition to these six coverage options, your nonprofit commercial package may include:

  • Abuse Liability
  • Cyber Liability
  • Loss of Business Income
  • Misconduct
  • Negligence
  • Special Event Insurance
  • Umbrella Coverage
  • Volunteer Medical Expense Coverage
  • Workers’ Compensation
Your organization needs customized insurance that meets your needs, fits your budget and protects your assets. Contact your insurance agent today for a customized quote and more information on the Nonprofit Commercial Package that's right for you. It provides invaluable protection that allows you to address risks while continuing to serve others.
 

Business Classes and Insurance

Bookmark and Share Every business owner who has ever received a bill for an insurance premium has wondered how the insurance company came up with the price, especially if the premium has gone up since the last renewal. Although the insurance pricing mechanism can seem mysterious, and might involve a certain amount of discretion by underwriters, the starting point is always the same: The underwriter must answer the question, “What type of business is this?”

That might appear to be a simple question, but it does not always have a simple answer. When the underwriter answers the question, they assign the business to one or more classifications; more than any other factor, these classifications determine how much premium the business will pay.

Classifying a business can be straightforward or it can be more art than science. Most state Workers Compensation insurance manuals contain roughly 700 classifications; the Commercial General Liability insurance manual has a little less than double that. Compare those numbers to the thousands of business types that exist today and the new ones that will exist five years from now, and you get a sense for why classifying a business can be tricky.

In addition, while Workers Compensation, General Liability and Property classification descriptions are similar in some cases; in many others they bear no resemblance to each other. The underwriter who knows that they’ve correctly classified the business for one type of policy might find that classification to be of no help for the others. Although it might appear that determining the correct classification is only the underwriter’s problem, it also has short- and long-term effects on the insurance buyer.

The correct classification ensures that the buyer pays the appropriate rate and that all buyers in that classification receive fair treatment. If the classification is incorrect, the buyer will pay a rate that is either too high or too low for that type of operation. For example, compare two contractors -- one installs plumbing systems in commercial buildings, the other installs automatic sprinkler systems in them. If the plumber’s work is faulty, a pipe might leak and cause water damage to furniture and equipment in one or more rooms.

If the sprinkler contractor’s work is faulty, the sprinklers might not work when a fire breaks out and the fire might destroy the entire building. The risk of a severe loss resulting from completed operations is much higher for the sprinkler contractor than it is for the plumber. If the underwriter classifies the sprinkler contractor as a plumber, the sprinkler contractor pays a much lower rate for completed operations coverage than it should.

In the long term, loss experience will cause the rates for plumbers to increase. This is unfair to plumbers and to sprinkler contractors whose underwriters classified them properly.

Also, charging an inadequate premium might cause the business’s experience modification to be higher than it should have been. The experience rating formula compares actual losses to the losses a typical business in that classification with that level of payroll or sales would have. If the classification is wrong, the formula will understate the level of expected losses, resulting in a higher debit or lower credit.

The rating manual rules require that policies issued to businesses in some classifications carry specific endorsements (policy changes). For example, the rules for restaurants require the company to attach an endorsement that changes the definition of the products-completed operations hazard. Use of the wrong classification can result in the wrong policy terms for the business. A business owner should work closely with one of our professional insurance agents to ensure that insurance companies are using appropriate classifications. Although the wrong classification might appear to save the business money in the short run, it can prove to be costly in the long run.
 

What is a Farms/Ranches Business Owners Policy

Bookmark and Share As a farmer or rancher, you may produce a variety of products. Maybe you grow grain, flowers or fruit, raise cattle, horses or alpacas, or manage fish ponds, chicken barns or a custom farming fleet. A farms/ranches business owners policy is essential for protecting your livelihood.

What is a Farms/Ranches Business Owners Policy?

A regular homeowners' policy covers your home if it's damaged, and it may give you some liability coverage. This policy won't give you the protection you need for your farm or ranch business, outbuildings or livestock, though. You need a specialized farms/ranches business owners policy with several layers of protection.  

What Does a Farms/Ranches Business Owners Policy Cover?

Farm and ranch owners may customize their business owners insurance policy. In general, your farms/ranches business owners policy covers:

  • House - Repair or replace your farm or ranch house and any possessions i
  • Liability - Cover medical and legal expenses you may incur if someone is injured while visiting your farm or ranch.
  • Livestock - Receive financial reimbursement if your livestock are stolen, attacked by dogs or wild animals, accidentally drown or are shot, suffer electrocution or die during a natural disaster or collision.
  • Machinery and equipment - Replace damaged, lost or stolen tractors, wagons and other machinery and equipment you own, borrow, rent or lease for farm or ranching activities.
  • Structures - Cover farm/ranch structures, including barns, pens, fences, silos, machine sheds and other buildings, that may be damaged, stolen or vandalized during a weather incident or other incident.
Additionally, you may customize your farms/ranches business owners policy with a schedule that's based on your specific farm or ranch operation. If something on your farm or ranch is not listed on the schedule, it may not be covered if it's damaged, lost, stolen or vandalized.

Ask your insurance agent about these optional coverages, too.

  • Accidental Direct Physical Loss
  • Amendatory Deductible on Cab Glass
  • Chemical Drift
  • Custom Farming
  • Crop Dusting
  • Equipment Breakdown
  • Extra Expense
  • Fire on Growing Grain
  • Hired Auto
  • Incidental Business
  • Limited Pollution Liability
  • Loss of Earnings
  • Seasonal Coverage
Where do you Buy a Farms/Ranches Business Owners Policy?

A farms/ranches business owners policy is a valuable investment. To purchase a policy, talk to your insurance agent. Discuss your unique needs, business and budget and create a policy that's right for you. For example, you may choose a policy with high liability limits if you conduct school tours on your farm or ranch, and the size of your farm or ranch affects the amount of coverage you will buy.  

A farms/ranches business owners policy gives you peace of mind and valuable protection for your home and your business. Understand what it is as you operate your farm or ranch.
 

All Managers Exempt Status is Not the Same

Bookmark and Share In Arenas vs. El Torito Restaurants, a California appellate court ruled on the possibility of a class action lawsuit for the misclassification of all managers at the El Torito restaurants as exempt.

Although the court gave a lengthy analysis about the appropriateness of the class action case, for our purposes, what’s important was that it warned employers that just because managers might be exempt at one store they might not be exempt at another store. It depends on the circumstances.

At some El Torito restaurants, many of the managers also did work performed by the staff or busboys. In other larger, busier restaurants, they did less of this work. Employers should determine whether managers are exempt on a case-by-case basis unless there’s complete uniformity in operations.

The plaintiff’s complaint also lays out the laundry list of exposures employers face by misclassifying managers as exempt; violation of wage and overtime regulations, failure to furnish wage and hour statements, or not providing rest and meal periods.