Goodwill Industries Insurance Michigan Policy Information
Goodwill Industries Insurance Michigan. Goodwill Industries is a non-profit organization famous for its network of thrift stores, the proceeds of which go on to benefit people in need of education or training so that they can find employment.
Goodwill chapters provide vocational training, employment placement services, and other assistance to jobless individuals. Many employees are disabled, disadvantaged, or undereducated. Some are veterans transitioning back into civilian life.
Marketable work skills are developed through training and on-the-job experience to receive, clean, repair, and sell donated items in Goodwill stores or on internet auctions. Volunteers may work with the employees to aid in their development. Goodwill chapters may partner with local businesses to develop opportunities for workers to improve their employment skills.
Some Goodwill chapters offer additional assistance to employees such as literacy improvement, high school diploma or GED classes, English as a second language (ESL) courses, child care, after-school programs, or referral services to other social agencies for such needs as food, clothing, housing or overcoming substance abuse.
Facilities for offices, retail stores, and warehouses may be owned or leased from others. Goodwill chapters are nonprofit and funded primarily through retail thrift stores, donations, and fundraising activities. Although there is a national organization, local groups are independent and develop their own programs within the national framework.
Many people are not aware of the fact that each Goodwill store is run independently, as a local non-profit. While Goodwill stores play an especially important role in individual communities because of this, it also means that each board of directors will need to assess the risks their stores face carefully.
The process of obtaining the right insurance coverage can be daunting and complex, but to make sure that a Goodwill store has the chance to thrive - so that it can achieve the goals it has set out to - it is crucial to carefully evaluate your insurance needs.
What types of Goodwill Industries insurance Michigan coverage might Goodwill chapters require? Discover more here.
Goodwill Industries insurance Michigan protects Goodwill chapters from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Why Do Michigan Goodwill Industries Chapters Need Insurance?
Goodwill stores face a myriad of risks - much like any business, charitable organization, government entity, or even private residence does. Although many of those risks can be minimized by, for instance, investing in quality security systems and adhering to health and safety protocols, the potential for catastrophic events always remains.
A MI Goodwill store could, for instance, be hit by an act of nature such as a serious storm of earthquake, causing significant damage to the building alongside inventory loss. Burglars or robbers may target the store, or it may fall victim to an act of vandalism.
Digital records could be hacked, employees could suffer a workplace injury, or a product you sell could turn out to be dangerous and hurt somebody. The list of possible perils goes on - but that does not mean you have to be paralyzed with worry.
Equipped with solid Goodwill Industries insurance Michigan, many of the costs that result from major perils will be covered, allowing the store to continue its important work without massive financial burdens.
By planning for the worst, a Goodwill store can more realistically hope for the best, even in the face of challenges.
What Type Of Insurance Do MI Goodwill Industries Chapters Need?
Each Goodwill chapter is, of course, unique. As such, each store will also have specific insurance needs. They depend, to name a few examples, on the size of the store, its location, the materials from which the building was constructed, and its number of employees.
A skilled insurance broker can walk you through the steps of acquiring optimal insurance for your individual store, taking all the factors that influence your risk profile into account. Some of the most important kinds of Goodwill Industries insurance Michigan coverage for any chapter, however, include:
- Commercial Property: Perils such as fire, theft, vandalism, and natural disasters can all damage - or even destroy - your building and the varied assets within, such as cash registers, inventory, and HVAC units. Property insurance helps you manage the repair and replacement costs that follow these events. As an addition, business interruption insurance covers revenue lost to these perils if your store has to close for repairs, something that also includes workers' wages.
- General Liability: It is always possible for someone to become injured on your premises when they, for instance, fall over unfortunately placed inventory. Your activities could also lead to third party property damage. In these cases, general liability insurance covers resulting legal fees.
- Product Liability: This type of Goodwill Industries insurance Michigan protects you from the financial costs that may arise if someone were to be injured by a product you have sold, and it is essential to any entity engaging in retail.
- Workers Compensation: Should an employee of your Goodwill store suffer a work-related injury, they may have medical costs as well as needing to take time off work and thereby losing wages. Workers' comp covers these costs, so that you don't have to.
It is important to be aware of the fact that these key types of insurance may not amount to a comprehensive insurance plan for your Goodwill store. You may further require auto insurance, or cyber insurance to protect you from the fallout of data breaches, among other options.
An insurance broker who specializes in the non-profit sector is best suited to explain what types of Goodwill Industries insurance Michigan coverage are needed to protect your store from all the major perils it could be confronted with.
MI Goodwill Industries' Risks & Exposures
Premises liability exposure is moderate at donation locations, processing locations, warehouses, retail locations, and the office due to the number of visitors. Donation locations must be easily accessible for convenient drop-off, with security to prevent unauthorized access while the premises is closed.
Offices, processing, and warehouse operations have limited premises exposure due to lack of public access. Retail operations have frequent visitors who can be injured by slips and falls. Aisles must be adequate and free of debris. Floor coverings must be in good condition, no frayed or worn spots on carpet, and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked with backup lighting systems in case of power failure.
Heavier items such as appliances should be kept on easily-reached shelves to prevent falling on customers. Crowd control may be a concern if the store offers special cut-rate sales during peak seasons. Parking lots and sidewalks need to be adequately lighted, in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.
There should be appropriate security for the area. If janitorial services or other operations are performed off-premises, property damage may result to customers' property. Personal injury exposures are from dressing rooms, which must be well maintained with privacy carefully guarded, and from apprehending and detaining shoplifters. Shoplifting procedures must be fully understood and utilized by all employees.
Abuse and molestation exposure is very high due to the supervision of disabled individuals. No coverage is available for the abuser. While there is some coverage available in the standard market for the institution where the abuse takes place, it is very restricted.
More complete coverage should be purchased through specialized markets. The institution must take all care possible to protect at-risk employees from predatory employees and volunteers through criminal background checks, training, monitoring and supervision, and reporting all allegations of abuse to the proper authorities.
Products exposure can be high if the institution restores and repairs donated items. Since extensive modification may take place, the organization could be considered the manufacturer of an item that causes damage.
Professional liability exposure could be extensive depending on services provided. The job training aspects may include evaluation by psychologists and psychiatrists. Physical and occupational therapists may assist in the development of employees' job-related motor skills.
Workers compensation exposure includes clerical workers who may develop repetitive motion injuries such as carpal tunnel syndrome, warehouse and retail store workers who can slip and fall or incur back injuries from lifting, and custodians who can develop respiratory ailments or contact dermatitis from working with chemicals to maintain the premises. Since the primary goal of the organization is to provide training, all such training must be well documented.
There is a special concern with working with the disabled because of the potential for making an already difficult physical situation worse. The employees must be supplied with appropriate safety gear and be adequately supervised based on the type of job and the level of disability.
Instruction in proper lifting techniques must be provided, along with appropriate equipment for the situation. Handling donations may include exposure to hazardous substances, insects or vermin, or communicable diseases.
Equipment used for repair operations should be appropriately maintained to prevent injury. In any retail business, hold-ups may occur. Employees should be trained to respond in a prescribed manner.
Property exposures include office, retail store, and warehouse locations. Ignition sources include electrical wiring, heating, and air conditioning systems. Operations may be in older buildings. All heating systems and electrical wiring should be up to date and meet current codes for the occupancy. Warehouse storage should have proper shelving and wide aisles, with separation of flammables from combustibles.
Cleaning and mending clothing can produce dust which adds to fire loads. Restoration of furniture includes the use of flammable liquids such as adhesives, paint, and varnish. These must be stored away from combustible materials.
Valuation of the donated items at the time of loss could be a concern and should be considered when coverage is written. Donation centers may be targets for thieves or vandals. Adequate security should be in place after hours to deter pilferage or dumping.
Crime exposures come from employee dishonesty and theft of money and securities, particularly from cash drawers in retail stores. Background checks should be conducted on all employees and volunteers handling money. Employee dishonesty coverage should be expanded to include volunteers as employees. Money should be regularly collected and moved away from the collection area, preferably to a safe on premises.
Bank drops should be made throughout the day to prevent a buildup of cash on premises. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. Audits should be periodically conducted, preferably by an outside firm.
Inland marine exposures include accounts receivable for the work done for business partners and for the government services provided, computers for office work and job training, goods in transit from merchandise being taken to and from warehouses to stores, and valuable papers and records for donors' records, employment records, and documentation for government and private grants.
All records must be duplicated and stored at an off-site location for easy restoration in the event of a loss. While fine arts, collectibles, and other high-valued items are occasionally donated to Goodwill, possession is temporary until sold at auction. Valuation can be a concern.
Commercial auto exposure is moderate due to the transportation of donated goods from collection centers to processing centers to warehouses to retail stores. If the organization transports employees, including disabled persons, the exposure increases.
All drivers must have an appropriate license for the vehicle being driven and acceptable MVRs. Owned vehicles must be maintained, with records maintained at a central location.
Goodwill Industries Insurance Michigan - The Bottom Line
Having the right goodwill industries insurance Michigan coverage is essential for MI Goodwill chapters. To discover what types of options are available to you and how much your coverage will cost, speak to a reputable commercial insurance agent.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Non-Profit Insurance
Find useful articles on business insurance for non-profit 501(c)(3) organizations, charities and associations.
- Animal Shelter & Pet Rescue
- Classic & Collector Car Clubs
- Fraternal Organization
- Goodwill Insustries
- Labor Union
- Parent Teacher Organization
- Public Administration
- Red Cross Chapters
- Salvation Army
- Social Work Services
- Veterans Groups
- Volunteers of America
- Youth Groups
For 501(c) Non-Profits - Directors And Officers Liability Insurance has become an increasingly important policy to have. D&O coverage protects insured directors or officers against claims involving allegations of wrongful acts occurring while performing their duties as such. The insurance is divided into two separate coverages:
Side A coverage reimburses the individual directors and officers for payments made for loss each has incurred because of wrongful acts.
Side B coverage reimburses the corporation for the payments it has made on behalf of the directors or officers themselves.
General Liability is a foundational policy for almost any business. Most companies do not have any control over the final cost of injuries to a person injured because of their operations, products, or services. The person injured may be a young child, a blue-collar worker, a surgeon, or a homeless person.
The cost of the injuries may be comparatively minor or run into the millions of dollars, depending on the person and the extent of his or her injuries. Do you have sufficient assets to pay such a loss?
Commercial general liability insurance is designed to help you protect your assets with three main coverages:
- Coverage A: Bodily Injury and Property Damage Liability
- Coverage B: Personal and Advertising Injury Liability
- Coverage C: Medical Payments
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Computers, Valuable Papers and Records, General Liability, Directors and Officers Liability, Employee Benefits, Professional, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Fine Arts, Musical Instruments, Commercial Articles Floater, Computers, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.
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