Last year, Nonprofilt Quarterly published an article releasing some statistics on a survey they did of their member firms regarding insurance claims. It’s a fascinating article, and we recommend you read it.
Here’s a few key takeaways that you might want to discuss with your nonprofit clients:
1.) Of the members surveyed, there were 117 governance claims, 51 fiduciary claims, and 1,346 employment practices claims. Clearly, employment practices is driving the losses.
2.) Employment practices is also leading the way with the most expensive claim with a high of $938,000, but Governance isn’t far behind with a high of $775,000. The largest fiduciary claim was $82,000.
3.) Not surprisingly, the average claims followed suit: Employment practices: $33,000 Governance: $23,000 and Fiduciary: 6,000.
Lot’s of room for discussion with your nonprofit clients about coverage, limits and risk management in just these three areas alone.
ALTRU, LLC is a Managing General Underwriter that specializes in directors & officers (D&O) and organization liability for non-profit organizations, as well as Miscellaneous Professional Liability (MPL) for a wide range of service firms. ALTRU provides underwriting services on behalf of Old Republic Insurance Company, rated A+ (Superior) by A.M. Best, A+ (Stable) by S&P and A2 (Stable) by Moody's. The team at ALTRU builds solid, professional relationships and delivers a superior level of service to their network of retail insurance agents, which sets them apart from other industry wholesalers.