Affordable Liability Insurance
Dear Petfinder.com members,
We have heard time and again how difficult it is for animal welfare organizations to find affordable liability insurance - something many of us need to hold off-site adoption events. It is also something all of us should have in case of the dreaded lawsuit - like when that newly adopted puppy chews through the plumbing and floods the basement (really - that happened to one of my adopters!) or when the nervous cat in his new home bites the hand that feeds him.
We are excited to offer a brand new opportunity for Petfinder members to obtain high-value insurance products and services at an affordable price: http://animalwelfareinsuranceprogram.com
The work you do in rescuing animals and finding them great new homes is as important as it is exhausting and sometimes even dangerous. In addition to the physical and emotional perils of the work, you also have to concern yourself with the "business" of animal welfare.
Animal Welfare Insurance Program (AWIP) was formed to assist us in designing insurance products and services specifically for Petfinder members. These products include general liability insurance for rescue groups (at an amazingly low cost) and for shelters and board members. There are also options for significant savings on prescription meds, dental and vision care.
As an organization working with animals, you should not be without adequate liability insurance to protect the organization and director and officer insurance (D&O) to protect the members of your board, who can also be sued.
There are many steps you can - and should - take to protect against the likelihood of ever being sued. However, the risk remains and we want to help you protect yourselves using the least amount of your valuable resources possible. Please think about your insurance needs and check out the products available at http://animalwelfareinsuranceprogram.com.
– Petfinder Outreach Team
GENERAL QUESTIONS
Q: What is the Animal Welfare Insurance Program (AWIP)?
A: AWIP was formed to assist Petfinder.com in designing insurance products and services for the animal welfare community. These products are only available to Petfinder.com member shelters and rescues.
AWIP is a division of ADP/Statewide Insurance agencies, Inc. Headquartered in Florham Park, NJ. ADP has been serving the NY, NJ, and PA markets for over 100 years. With access to 26 national and regional markets, ADP serves the needs of a variety of clientele; from the one man shop to the large multi state risks.
Q: Where is AWIP available?
A: The Animal Welfare Insurance Program is available to organizations and their directors and officers in the United States.
Q: Why do nonprofits need Directors and Officers Insurance?
A: A comprehensive D&O policy is essential for nonprofit organizations for several reasons. It's a necessary tool in order to attract qualified individuals to sit on the board, as well as to act in the capacity of an officer or director. As a board member, you can be held personally liable for claims that arise out of the running of the organization. From the organization's perspective, the consequences of not carrying this policy can be devastating. The average cost to defend an allegation can be in the tens of thousands of dollars. That is a cost most nonprofits can't afford, nor do they have access to a specialized attorney to properly defend themselves. In the end, the organization may have to close its doors.
Q: What Does D&O Insurance Cover?
A: D&O Insurance provides coverage for potential wrongful acts committed by the board members. Wrongful acts on a D&O policy include misleading statements, negligent acts, or breach of duties. The amount of coverage you ultimately purchase varies by each organization and its potential exposure. In the for-profit world, you have the risk of shareholders making a claim against the operations and running of the company. In nonprofits, you typically do not have claims from shareholders but may see claims from guardians of people that the organization serves, past officers and board members, as well as from employees.
D&O policy holders should know the status of their claims-made coverage. Claims-made coverage means the insurance company will pay for a covered claim if a lawsuit is filed and occurs while the organization holds the policy. By contrast, an occurrence policy will pay a covered claim based on when the accident or occurrence happened.
Q: How can the fiduciary responsibility of board members lead to a claim?
A: The charters or bylaws of most nonprofit organizations require board members to protect the assets of the nonprofit, as well as to expand and grow the funding forces. An example might be if an officer or board member decided to use certain funds within an agency on a risky new program, and that risk proves to be a bad investment and the overall agency suffers financially. You could conceivably see a third-party claiming that the future of that organization could be in jeopardy because its endowment or funding has been diminished significantly by the choices of that officer or board member.
Q: How can you avoid gaps in coverage that could lead to uncovered claims?
A: With D&O policies, the devil is in the details. A comprehensive review of the policy language is essential to understanding what you do and do not have coverage for. Does the policy contain an Insured versus Insured exclusion? Is the policy providing coverage for employment practices liability as well? Is the limit of insurance a shared limit, or does each agreement have a separate limit of liability? Is the cost of defense included within the limit of liability? What is the retention amount? Using a broker that specializes in the nonprofit sector can be a great source of information as to the difference between policies.
When completing the application it is important that you fully disclose accurate information, as misstatements can void coverage. The application becomes part of the policy and is a warranty statement. Organizations should also emphasize any loss control and risk management policies used to help minimize any potential losses. By giving more information to an underwriter, you will be able to negotiate better pricing and broader coverage.
Q: Are there discount healthcare programs for employees and volunteers?
A: Yes! There are three Discount Healthcare Programs that offer meaningful discounts on prescription medications, dental and vision products and services. These are point-of-purchase discount programs; they are not insurance. They are a way to help reduce today's high costs of healthcare. Petfinder is able to provide these deeply discounted programs to you because our provider, Preventative HealthCare Solutions, LLC has combined the purchasing power of hundreds of thousands of consumers nationwide. Please click here for details.
| Back to top |
ANIMAL SHELTERS
Q: What insurance programs are available for animal shelters?
A: AWIP has both General Liability and Directors and Officers Insurance coverage.
Directors and Officers Insurance protects an organization's management from liabilities for defense costs and damages arising out of an alleged 'Wrongful Act' (ex. breach of fiduciary duty/management of business operations) in their capacity as a director or officer of the organization.
Broad coverage extensions built into the program:
- Coverage for Publishers Liability (trademark, copyright infringement) and Personal Injury Offense (libel, slander).
- Special Event Management Coverage/Response (publication of or potential release of unfavorable information regarding the Insured to the public) - $25,000 sub-limit.
- Beyond market standard coverage extensions - defense outside the limits, policy is fully non-rescindable
Q: How can shelters get more information and a quote?
A: Please visit http://animalwelfareinsuranceprogram.com/shelters.html for additional details. You can reach AWIP Underwriters for assistance at 877-538-6300 x217 or awip@adpinsurance.com
| Back to top |
ORGANIZATIONS WITHOUT SHELTER FACILITIES
Q: What insurance programs are available for foster-based organizations?
A: AWIP has both General Liability and Directors and Officers Insurance coverage.
General Liability
Protect your organization against lawsuits and claims with the Animal Welfare Insurance Program, only for Petfinder.com members.
Coverage Limits:
- $1,000,000 Per Occurrence Limit
- $2,000,000 General Aggregate
- Low cost of $750 per year
Protect your employees, volunteers and board members from bodily injury and property damage claims.
AWIP also covers:
- All Events and Fundraisers for NO extra charge
- All Adoption events
- Dog Bite Claims
- Personal and Advertising Injury
- Additional Insureds if required by Contract
Directors and Officers Insurance
Directors and Officers Insurance protects an organization's management from liabilities for defense costs and damages arising out of an alleged 'Wrongful Act' (ex. breach of fiduciary duty/management of business operations) in their capacity as a director or officer of the organization.
Broad coverage extensions built into the program:
- Coverage for Publishers Liability (trademark, copyright infringement) and Personal Injury Offense (libel, slander).
- Special Event Management Coverage/Response (publication of or potential release of unfavorable information regarding the Insured to the public) - $25,000 sub-limit.
- Beyond market standard coverage extensions - defense outside the limits, policy is fully non-rescindable
Q: How can rescue organizations get more information and a quote?
A: Please visit http://animalwelfareinsuranceprogram.com/rescue.html for additional details. You can reach AWIP Underwriters for assistance at 877-538-6300 x217 or awip@adpinsurance.com
| Back to top |
EMAIL
SHARE
