Red Cross Chapters Insurance Policy Information
Red Cross Chapters Insurance. The Red Cross offers an impressive variety of services that each benefit public health - from disaster relief to blood donation, and from teaching first-aid courses to helping veterans and military families.
Red Cross chapters primarily provide food, clothing, shelter, transportation and medical assistance to individuals and families impacted by local or national disasters. While locally based, they may respond to calls for assistance elsewhere in the United States or sometimes overseas.
The organization may provide support to military families, offer health and safety courses such as CPR or First Aid, lifeguard or babysitter training, or may have a blood donation center.
Facilities for offices and warehouses may be owned or leased from others. Red Cross chapters are nonprofit and funded primarily through donations and fundraising activities. A large portion of labor may be voluntary.
Its individual chapters are the Red Cross' on-the-ground units, directly serving their local communities. As non-profit entities, they will have employees as well as volunteers.
Given the fact that Red Cross chapters are involved in providing relief in emergency situations, it is no surprise that they face a multitude of risks. Some of the perils Red Cross chapters can encounter are of a more mundane, but not necessarily less costly, nature.
What types of Red Cross chapters insurance might be needed to protect its interests in the event of catastrophes or other perils? To learn more, keep reading.
Red Cross chapters insurance protects local Red Cross operations from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked Red Cross chapters insurance questions:
- How Much Does Red Cross Chapter Insurance Cost?
- Why Do Red Cross Chapters Need Insurance?
- What Type Of Insurance Do Red Cross Chapters Need?
How Much Does Red Cross Chapter Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small Red Cross chapters ranges from $87 to $129 per month based on location, size, revenue, claims history and more.
Why Do Red Cross Chapters Need Insurance?
Red Cross chapters need insurance for the very same reasons that require any business, governmental entity, or non-profit organization to carry the comprehensive coverage - to protect themselves against ruinous financial outcomes in the event of circumstances beyond anyone's control.
Like any other building, the premises on which Red Cross chapters operate can be damaged in an act of nature or fall victim to serious accidents such as fires, destroying physical equipment ranging from computers to first-aid teaching materials in the process.
Burglary and other forms of theft, including cyber crime, always pose a risk, alongside vandalism. Members of the public, donors, volunteers, and employees may also suffer an injury on the premises, after which the liability costs can be devastating.
Non-profit entities like Red Cross chapters also have to take the possibility that their activities could inadvertently damage third party property into account.
Although the risks a Red Cross chapter faces are many, the right insurance policies can shield them from overwhelming costs that could put the future of the organization in jeopardy. Armed with the correct Red Cross chapters insurance plan, local chapters can focus on what they do best, knowing that they are protected in worst-case scenarios.
What Type Of Insurance Do Red Cross Chapters Need?
Red Cross chapters will need to carry several different types of insurance, each of which shields them from the financial consequences of different perils. The precise types of coverage a Red Cross chapter should decide on depend on factors such as its location and size, the exact scope nature of its activities, and its number of employees.
For this reason, it is essential to consult a skilled insurance broker and to carefully evaluate the kinds of perils each policy covers. With that in mind, local chapters will need to be aware of these key types of Red Cross chapters insurance:
- Commercial Property: Should your premises be damaged by acts of nature, theft, vandalism, or certain accidents, property insurance offers a much-needed financial barrier. It not only covers repair bills for a physical building, but also replaces the value of smaller physical assets that were damaged, destroyed, or lost.
- General Liability: This type of insurance exists to protect against the costs associated with third party property damage or physical injury lawsuits - such as attorney fees, repair bills, medical expenses, and court fees. Examples of scenarios covered by these policies would include accidental damage to a visitor's vehicle, or someone being injured after slipping on your wet floor, or even lawsuits following accidental copyright infringements in educational materials.
- Workers' Compensation: If an employee sustains a work-related injury, this type of Red Cross chapters insurance pays for their medical costs as well as any wages lost while they recover. In the worst cases, it can also provide death benefits. While Red Cross chapters will require workers comp, they should be aware that these policies do not necessarily cover volunteers.
- Malpractice: Facilities that teach first aid also require malpractice insurance. This would cover events like one student being injured as another practices an emergency technique on them.
While these types of Red Cross chapters insurance will be essential for local chapter, they may not constitute a comprehensive insurance plan. It is likely that Red Cross chapters will also need auto insurance, for example, as well as cyber insurance to protect their digital assets against theft.
Discussing your risk profile with an insurance broker dedicated to the non-profit sector is, therefore, an important step.
Red Cross Chapters' Risks & Exposures
Premises liability exposure for on-premises operations such as office, blood banks, donation locations, and storage and processing locations is moderate due to public access to the premises. 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.
Donation locations must be easily accessible for convenient drop-off, with adequate security to prevent unauthorized access while the premises is closed. 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.
At disaster sites, exposures can be high due to emergency operations where volunteers are brought together to aid in recovery. Shelters may be set up in remote locations without adequate utility services. The shelter must be secure for those in its care. Medical care, food, and clothing are also generally provided. Because the public is being served, life safety concerns are critical.
If there are camps and other children's activities, instructors must be trained in appropriate methods of caring for the safety of the children. Personal injury exposures include violating the privacy of clients, libel, and slander, wrongful eviction, or invasion of the right of private occupancy of a living unit.
Abuse and molestation exposure is high due to the supervision of children and other at-risk 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 clients from predatory employees and volunteers through criminal background checks, training, monitoring, and supervision, and report all allegations of abuse to the proper authorities.
Shelters must be monitored to prevent incidents of client-on-client abuse.
Directors' and officers' exposure is moderate. There should be published policies and procedures that are consistently followed, especially as they relate to membership, membership revocation, the election of officers, and removal of officers.
Products exposure can be high if the institution restores and repairs donated items. Because 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. Professional employees could include medical doctors, nurses, and ancillary medical specialties. Employees and volunteers working at blood banks should be appropriately certified.
Workers compensation exposure includes clerical workers who may develop repetitive motion injuries such as carpal tunnel syndrome, warehouse 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.
Warehouse employees should be instructed in proper lifting techniques. Safety equipment should be provided as necessary. Blood bank employees should be trained in proper handling of bodily fluids. All personnel working under emergency conditions must be trained for those particular situations. Shelter house workers must be able to handle unruly individuals and may be exposed to contagious disease from clients.
There is a special concern with working with the disabled because of the potential for making an already difficult physical situation worse. Drivers must be trained in driving the vehicles, plus methods of loading and unloading of passengers and goods.
Property exposures include office and warehouse locations. Ignition sources include electrical wiring, heating, and air conditioning systems. Operations may be conducted from older buildings. All heating and electrical wiring should be up to date and meet current codes for the occupancy.
Warehouse storage is for donated items, medical goods, and other emergency items that can be provided quickly to those in need following an emergency. Storage should have proper shelving, wide aisles and separation of flammables from combustibles. Cleaning and mending of clothing can produce dust which adds to fire loads. Restoration of furniture will include flammable liquids such as adhesives, paint, and varnish.
Work on donated automobiles may involve the use of grinding, spray painting or welding. These must be conducted away from combustible materials. If food services are provided at permanent locations, there should be controls such as automatic shut-off devices and temperature controls.
Valuation of the donated items at the time of loss could be a concern and should be considered when coverage is written. Donation and distribution centers may be targets for thieves or vandals. Adequate security should be in place after hours to deter pilferage or dumping.
Some chapters operate blood banks which require totally sterile conditions for the collection and storage of blood. Proper refrigeration requires an ongoing maintenance agreement and backup power source.
Crime exposures come from employee dishonesty and theft of money and securities. Background checks should be conducted on all employees and volunteers handling funds. Employee dishonesty coverage should be expanded to include volunteers as employees.
There must be a separation of duties between persons handling deposits and disbursement and reconciling bank statements. Audits should be periodically conducted, preferably by an outside firm.
Inland marine exposures include accounts receivable for-fee services and promised monetary donations, computers, goods in transit, mobile equipment, and valuable papers and records for client information, donor lists, and documentation for government and private grants.
Goods in transit and mobile equipment include items that will be used in an emergency, such as tents and medical equipment, and portable blood collecting machinery used for off-site blood drives. Proper storage and security for the items when off site are important since medical equipment is very expensive.
All records must be duplicated and kept off site for easy restoration in the event of a loss.
Commercial auto exposure can be high due to the transportation of goods and individuals under emergency conditions over damaged roads in remote locations. Vehicles used for blood drives can be bulky and difficult to maneuver in congested traffic.
Services may be provided to transport disabled persons within the community. All drivers must have an appropriate license for the vehicle being driven and acceptable MVRs. Owned vehicles must be maintained, with records kept at a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8322 Individual and Family Services
- NAICS CODE: 624230 Emergency and Other Relief Services
- Suggested ISO General Liability Code(s): 44440
- Suggested Workers Compensation Code(s): 8864, 8868
Description for 8322: Individual And Family Service
Division I: Services | Major Group 83: Social Services | Industry Group 832: Individual And Family Social Services
8322 Individual And Family Service: Establishments primarily engaged in providing one or more of a wide variety of individual and family social, counseling, welfare, or referral services, including refugee, disaster, and temporary relief services. This industry includes offices of specialists providing counseling, referral, and other social services. Government offices directly concerned with the delivery of social services to individuals and families, such as issuing of welfare aid, rent supplements, food stamps, and eligibility casework, are included here, but central office administration of these programs is classified in Public Administration, Industry 9441. Social Security offices are also classified in Public Administration, Industry 9441. Establishments primarily engaged in providing vocational rehabilitation or counseling are classified in Industry 8331; and fraternal, civic, and social associations are classified in Industry 8641.
- Activity centers, elderly or handicapped
- Adoption services
- Adult day care centers
- Aid to families with dependent children(AFDC)
- Alcoholism counseling, nonresidential:except medical treatment
- Centers for senior citizens
- Child guidance agencies
- Community centers
- Counseling centers
- Crisis centers
- Crisis intervention centers
- Day care centers, adult and handicapped
- Disaster services
- Emergency shelters
- Family counseling services
- Family location services
- Family service agencies
- Helping hand services
- Homemaker's service, primarily nonmedical
- Marriage counseling services
- Meal delivery programs
- Multiservice centers, neighborhood
- Neighborhood centers
- Offender rehabilitation agencies
- Offender self-help agencies
- Old age assistance
- Outreach programs
- Parole offices
- Probation offices
- Public welfare centers, offices of
- Referral services for personal and social problems
- Refugee services
- Relief services, temporary
- Self-help organizations for alcoholics and gamblers
- Senior citizens associations
- Service leagues
- Settlement houses
- Social service centers
- Telephone counseling service
- Traveler's aid centers
- Youth centers
- Youth self-help organizations
Red Cross Chapters Insurance - The Bottom Line
For the safety of your chapter, your employees and the people you serve, having the right red cross chapters insurance coverage is essential. To find out what types of options are available to you and how much your coverage will cost, speak to a reputable commercial insurance broker.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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.