Establishing the Best Social Service Solution
Churches, charities, and social service providers can take pride in the contributions they make to a community. To continue this valuable work, these organizations must remain aware of the unique hazards that social work entails. Insurance is one essential part of social services risk management.
Some Solutions
If you hold a leadership position with a social service group, ensure that your organization addresses these frequently overlooked coverage areas.
Cybersecurity
Many charities and churches believe that their institutions are too small to attract the attention of cybercriminals. Other social service organizations must abide by the federal government’s Health Insurance Portability and Accountability Act. Unfortunately, neither small nor HIPAA compliance makes a group safe from cybercrime.
Cybersecurity coverage highlights the value of working alongside an insurance professional with a comprehensive knowledge of the best solutions in social services. Of course, with every succeeding year, standards for obtaining cybersecurity coverage tighten. An agency familiar with security measures can help you place coverage and lessen your risk of cybercrime. Subsequently, using methods like dual-factor authentication can help upgrade security measures.
Volunteers
Volunteers make charitable social work possible, and this fact makes it imperative to cover all of the liability issues surrounding these individuals. Additionally, while crafting social service solutions, you should understand that your volunteers have a unique legal status. The federal government’s 1997 Volunteer Protection Act largely exempts volunteers from liability consequences if these individuals avoid reckless behavior. Also, background checks always can help ensure that the appropriate people are in place.
For social service organizations, relying on the 1997 act is perilous in two ways. First, the legislation’s language is open to interpretation and leaves room for plaintiffs’ attorneys. Second, even if a charity or social services agency avoids a lawsuit, the organization may suffer reputation damage for not compensating injured parties. A sullied reputation may damage fundraising efforts for years to come.
The other side of the liability coin is when an organization’s volunteers suffer injuries while donating their labor. Adding coverage to a workers’ compensation package is one way to cover volunteers, but this avenue may cause a premium increase. An alternative is a tailored liability policy closely aligned with the volunteers’ risk profile. The tradeoff between these approaches is another reason to work with a broker experienced in social services risk management. Likewise, groups that stage public fundraising events with volunteer participation may need special events insurance to eliminate a final coverage shortfall.
Directors and Officers
Insurance coverage for directors and officers is a social services risk management goal where many groups fall short. Small organizations with heavy volunteer participation may neglect D&O coverage entirely, leaving a group’s leadership vulnerable to catastrophic litigation. A much more frequent problem is a D&O policy with gaps in coverage. Subsequently, the leaders of all social service organizations should ensure that their D&O policies cover lawsuits from employees, volunteers, service recipients, and donors.
About Porter & Curtis
Porter & Curtis is the premier insurance agency providing integrated risk management to religious organizations. If you’re seeking a policy for a unique exposure, we can help. Message us or call us at 610-891-9850 for more information.