Social Services & Non-Profit

As this IDD nonprofit grew, its insurance program didn’t grow with it. Basic coverage was in place, but significant gaps left the organization exposed, particularly around abuse liability, property valuation, and emerging risks like cyber threats and employment practices.

For an organization serving vulnerable adults, those gaps weren’t just financial risks; they were mission risks.

Key Issues Included:

• Abuse coverage that was sublimited and excluded from the umbrella
• Incorrect property values paired with co-insurance clauses, creating underinsurance exposure
• No cyber liability coverage
• No employment practices liability coverage
• Incorrect or missing workers’ compensation class-code ratings
• No umbrella coverage
• No meaningful risk management support

RIG conducted a full review of the organization’s operations, policies, procedures, and existing coverages. The assessment revealed that the most critical gap was abuse coverage; it was both sublimited and excluded from umbrella protection, leaving the nonprofit dangerously exposed in the area of greatest risk.

Program Restructuring:

Abuse Coverage:
Assisted the client in developing a comprehensive abuse prevention program with appropriate internal controls, enabling placement of full $1M/$3M abuse coverage—included in a $5M umbrella

Property:
Updated to full replacement cost with accurate ratings and co-insurance eliminated

Umbrella:
Restructured to sit correctly over professional liability, abuse, and package policies, with limits set at $5M

Cyber & Management Lines:
Comprehensive cyber and management liability policy added

Auto:
Enhanced with safety controls; assisted the client in building a driver screening and onboarding process and evaluating GPS and camera options

Risk Management Enhancements:

• Appliance shut-off devices installed at residential locations
• Driver safety recommendations including telematics with GPS and cameras
• Comprehensive abuse prevention program developed, protecting both the organization and the individuals in its care
• Staff supervision guidance and onboarding procedures formalized

Carrier Strategy:

The organization was matched with a carrier that specializes in nonprofit and social services risks, ensuring both coverage depth and claims expertise aligned with the nature of their work.

The program was tested when an allegation of sexual and physical abuse was brought against a staff member at one of the residential homes. The organization faced legal action, regulatory scrutiny, and reputational exposure.

Because the program had been rebuilt properly, the organization was prepared:

• Documented onboarding and abuse prevention training demonstrated due diligence
• The specialized carrier provided knowledgeable defense support
• A crisis management plan enabled clear, appropriate communication to families, the public, and regulatory authorities

The claim was ultimately determined to be unfounded, but the outcome wasn’t left to chance. With the right program in place, the organization was able to defend itself with limited out-of-pocket expenses and no disruption to services or operating reserves.

Additional RIG Program Benefits:

• Accurate property coverage eliminated co-insurance exposure
• Cyber and employment practices coverage closed long-standing gaps
• Continued confidence from leadership, the board, licensing bodies, and the families and individuals they serve