Even non-profit organizations, or charitable organizations built around the concept of doing well, are in the midst of some of the most serious and public # MeToo accusations. In January 2017, news broke that Gerald Anderson, executive director of the American Red Cross, was reportedly forced to resign after the charity concluded that he was bothering at least one subordinate sexually. His next employer, Save the Children, only discovered the accusations of sexual misconduct when ProPublica investigative reporters were followed by one of Anderson's prosecutors.
This case, involving two global charities, drew the attention of the national media and showed that non-profit organizations have as much exposure to management and professional liability as private companies.
"The media interest in the # MeToo movement has undoubtedly led to an increase in the number of management and professional liability insurances," said Melissa Yurich, assistant vice president at NIF Pro, a specialist management and professional liability department within NIF. Group, Inc. "We" receive many more phone calls and questions about sexual harassment and outrageous cover. We also receive many requests from non-commercial insured parties who want to increase their coverage limits for their liability policies (EPL) and D & O insurance. We all know from watching TV or listening to the radio that this lighting is everywhere, whether you are a profit-oriented organization or a non-profit organization. "
NIF Pro is a brokerage unit that handles the management and professional liability processes for the NIF Group insurance programs, including the non-profit and social service program. With access to more than 50 markets, NIF Pro is well placed to transfer difficult professional exposures and deal with fluctuating market conditions such as the # MeToo movement.
"On the brokerage side, we have certainly seen that some carriers change their risk appetite as a result of the # MeToo movement, but there has not been as much reaction as I thought there might be," Yurich said. Insurance business. "I think that as soon as claims begin to pay out, which can take a few months to a year, we will see some markets a little more selectively about what they are willing to quote from the beginning, for example, we see that some markets be a bit more cautious when a non-profit organization or association has a celebrity on the board Looking ahead, I think some hauliers are looking for a higher retention if there is a familiarity with the risk.
"At NIF Pro we have access to more than 50 markets, so we are not concerned that some carriers are changing their risk appetite, we always find a way to write something for the right price and with the right coverage, because the capacity There is one thing we need to do is make sure our policyholders understand that non-profit management and professional liability can potentially become a more difficult class to write if the market changes drastically. "
One thing that non-profit organizations need to be careful about is ensuring that volunteers they employ are covered by their EPL policies, according to Paul Orlando, vice president of marketing and sales at NIF Group.
He said: "From the perspective of our program for non-profit organizations and social services, we always want an insured to have the right recruitment processes in house, including performing adequate background checks for both employees and volunteers, and it is very important for brokers working together. with non-profit organizations to clarify and ensure that the definition of an employee under the EPL policy also includes volunteering. "
Another element of hedging organizations can and should benefit from the value-added risk management services that belong to most EPL and D & O policies, Yurich added. Many policies include access to advice hotlines or lawyers who will train employees and managers around best practices in the workplace.
"Carriers want to be absolutely certain that insured people have the right manuals for employees and procedures for sexual harassment," she said. "Some people only adopt an EPL policy if they have confirmation from the insured that there is a form of discrimination or intimidation policy, so that employees know their rights."