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:
- What Is Red Cross Chapter Insurance?
- How Much Does Red Cross Chapter Insurance Cost?
- Why Do Red Cross Chapters Need Insurance?
- What Type Of Insurance Do Red Cross Chapters Need?
- What Does Red Cross Chapters Insurance Cover & Pay For?
What Is Red Cross Chapter Insurance?
Red Cross Chapter insurance refers to insurance coverage provided to local chapters of the American Red Cross. This coverage typically includes liability, property, and workers' compensation insurance.
It helps protect the chapters and their volunteers against any financial losses that may arise from accidents, injuries, or damages while carrying out their mission. The purpose of this insurance is to provide peace of mind and financial security to the chapters so they can focus on their humanitarian work without having to worry about the costs of potential incidents.
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.
What Does Red Cross Chapters Insurance Cover & Pay For?
Red Cross chapters, like any other organization, can be sued for various reasons. While they are a humanitarian organization, they are not immune to legal issues. Here are some common reasons for which Red Cross chapters may be sued and how insurance can help protect them:
Negligence: If a Red Cross chapter fails to provide adequate care or assistance during an emergency or natural disaster, they can be sued for negligence. Insurance can help in this situation by providing professional liability coverage, which can help pay for legal defense costs, settlements, or judgments that may result from the lawsuit.
Employment-related issues: Red Cross chapters can be sued for issues like wrongful termination, discrimination, or harassment. Employment practices liability insurance (EPLI) can help protect the organization by covering legal defense costs, settlements, and judgments associated with such employment-related claims.
Property damage: If a Red Cross chapter causes damage to someone else's property during the course of their operations, they can be held liable. General liability insurance can help cover the costs of repairing the damaged property and any associated legal expenses.
Auto accidents: Red Cross chapters use vehicles to transport people and supplies during emergencies. If a Red Cross vehicle is involved in an accident that results in injuries or property damage, the organization can be sued. Commercial auto insurance can help cover the costs of the resulting legal expenses, medical bills, and property repairs.
Volunteer injuries: Volunteers are crucial to the operations of Red Cross chapters. If a volunteer is injured while working for the organization, they might sue for compensation. Volunteer accident insurance can help protect the organization by covering medical expenses and other costs associated with the injury.
Directors and officers liability: Red Cross chapters can be sued for decisions made by their directors and officers, such as financial mismanagement or breach of fiduciary duty. Directors and officers (D&O) liability insurance can help cover legal expenses, settlements, and judgments resulting from such lawsuits.
Cyber liability: Red Cross chapters store sensitive information about donors, volunteers, and the people they serve. If a data breach occurs, the organization can be sued for failing to protect this information. Cyber liability insurance can help cover costs associated with legal defense, notification, and credit monitoring services for affected individuals.
For each of these examples, having the appropriate insurance coverage can help the Red Cross chapter manage the financial impact of a lawsuit, allowing them to continue their vital humanitarian work.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8322 Individual and Family Services
- NAICS CODE: 624230 Emergency and Other Relief Services
- Suggested Workers Compensation Code(s): 8864 Social Services Organization - All Employees & Salespersons, Drivers, 8868 School - Professional Employees & Clerical
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.
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
- Specialty Community Service Organizations
- Specialty Nonprofit Agencies
The non-profit industry is an essential sector of society that plays a crucial role in addressing social issues, providing vital services, and promoting community development. Non-profits rely on donations, grants, and volunteer work to fund their operations, and any financial loss or liability can significantly impact their ability to serve their mission.
Insurance can protect non-profits from unexpected financial losses, accidents, and legal liabilities that can arise from their operations. For example, a non-profit organization may need insurance to cover damages to their property, injuries to volunteers or employees, or legal costs associated with lawsuits.
Non-profits also face unique risks such as loss of donations, damage to reputation, and loss of funding. Business insurance can help mitigate these risks by providing coverage for financial losses, reputational damage, and other non-tangible losses.
In addition, non-profits often work with vulnerable populations, such as children, the elderly, or individuals with disabilities. Insurance can protect non-profits from liabilities arising from the care and services they provide to these populations.
Overall, commercial insurance is an essential component of risk management for non-profit organizations. It helps protect the organization's financial stability, reputation, and ability to fulfill its mission and serve its community.
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.