Salvation Army Insurance Policy Information
Salvation Army Insurance. As an international charitable and religious organization, the Salvation Army is dedicated to helping those in need in a wide variety of ways.
The Salvation Army is a religious organization that preaches the gospel by providing social services such as food, clothing, shelter, and transportation 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 Salvation Army may offer ongoing programs such as counseling, food kitchens, housing, or transportation to clients. Some have special programs for prisoners, disabled, elderly, or homeless clients. Assistance is available for locating missing persons.
The Salvation Army is a church. It is nonprofit and funded primarily through donations and fundraising activities. Some Salvation Army chapters operate retail outlets to sell used items as a permanent fundraising operation.
Facilities for offices, retail stores, and warehouses may be owned or leased from others. A large portion of labor may be voluntary.
Salvation Army thrift stores play an important role in the organization's activities, by not just offering an assortment of budget-friendly goods, but also providing jobs. A portion of the revenue the Salvation Army receives from its thrift stores in turn goes back to the community by funding emergency efforts.
As organizations dedicated to assisting less fortunate people, it is crucial for Salvation Army thrift stores to also consider the risks that may stand in their way. Because a number of unforeseen circumstances could jeopardize the future of any Salvation Army store, investing in the right insurance is absolutely essential.
What kinds of Salvation Army insurance coverage might be needed, and what hazards might they face? Read on to find answers to these questions.
Salvation Army insurance protects the local organizations 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 Salvation Army insurance questions:
- How Much Does Salvation Army Insurance Cost?
- Why Do Salvation Army Locations Need Insurance?
- What Type Of Insurance Do Salvation Army Locations Need?
How Much Does Salvation Army Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small Salvation Army locations ranges from $87 to $129 per month based on location, size, revenue, claims history and more.
Why Do Salvation Army Locations Need Insurance?
Engaging in a quick mental exercise is sufficient to reveal what types of perils a Salvation Army thrift store might face. What is the worst that could happen? The store could be struck by an act of nature - and depending on the location, that might be a wildfire, earthquake, or hurricane, among other possibilities.
An electrical malfunction could lead to a fire. A used product sold in the store may end up causing physical injury to a consumer. A store employee could be injured at work, in mundane daily activities like mopping a floor, or even in an armed robbery - because crime, too, poses a serious threat.
All of these perils are accompanied by significant financial losses, in the form of, to name some examples, repair or replacement costs, medical bills, and lawsuits. Although a Salvation Army store may be able to cover costs incurred as the result of minor hazards on its own, larger perils can be devastating.
Fortunately, armed with Salvation Army insurance designed for the non-profit sector, any challenges faced instantly become much more manageable.
What Type Of Insurance Do Salvation Army's Need?
Salvation Army stores will need to carry several different types of insurance. The exact nature of the policies they require, as well as the cost, depend on factors that include the location and size of the store, its number of employees, and the type of equipment it relies on.
Consulting an insurance broker who is deeply familiar with the needs of charitable and non-profit organizations is a crucial step on the path towards obtaining the insurance coverage that will protect a Salvation Army store from all major perils.
With that in mind, the following are examples of invaluable types of Salvation Army insurance:
- Commercial Property: This type of insurance provides a barrier that protects you from financial losses stemming from unforeseen events like storms, fires, and burglary. It covers the physical building, but also assets therein, such as inventory, cash registers, and computers.
- General Liability: Designed to protect you if someone were to file a lawsuit claiming that they sustained bodily injury or property damage on your premises or as a result of your activities, this type of Salvation Army insurance is essential for any commercial or non-profit venture.
- Product Liability: This type of coverage helps you manage costs arising from liability claims pertaining directly to products you sell; something that is especially important for stores selling used items about which they may not know everything.
- Workers Compensation: When an employee becomes injured at work under circumstances for which you could be held at least partially responsible, this type of insurance makes sure their medical bills and any lost wages are covered.
Salvation Army thrift store will want to be mindful of the fact that each policy varies; two policies with the same name do not necessarily cover the same eventualities.
Salvation Army insurance needs may also exceed the examples covered here; you may require cyber insurance to protect your digital records, and auto insurance to cover your vehicles, for instance.
It is, therefore, vital to consult a skilled insurance broker to find out what types of coverage your individual store will benefit from.
Salvation Army's Risks & Exposures
Premises liability exposure is moderate due to the number of visitors. Facilities include locations for worship, donations, processing, warehouses, retail stores, and residential facilities. The worship activities are similar to any church so there must be concern about public accessibility and slip and fall hazards must be minimized. Donation locations must be easily accessible for convenient drop-off, with security to prevent unauthorized access while the premises is closed.
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 with flooring 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 so that customers do not pull items down on themselves. Residential facilities must be equipped with hard-wired smoke detectors in each unit. Safety and security of each client is critical.
As with the retail operations, flooring must be in good condition, and sufficient exits provided with backup lighting in the case of emergency. Parking lots and sidewalks need to be 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 the business is open after dark, lighting must be adequate.
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. Because the public is being served, life safety concerns are critical.
If there are camps or other children's activities, instructors must be trained in appropriate methods of caring for the safety of the children. If janitorial services or other operations are performed off-premises, property damage may result to customers' property.
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 very high due to the supervision of children and other at-risk individuals. No coverage is available for the abuser. While there is some coverage in the standard market for the institution where the abuse takes place, it is very restricted.
More complete coverage should be purchased for the institution through specialized markets. The institution must do everything necessary to protect 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 can be substantial. 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. Since extensive modification may take place, the organization could be considered the manufacturer of an item that causes damage.
Professional exposure could be extensive depending on services provided. The assistance to at-risk individuals may include evaluations by psychologists and psychiatrists. The most serious situations will relate to children, criminal offenders and alcohol/drug rehabilitation counselors. Physical and occupational therapists may be on staff to assist in the development of clients' job-related motor skills.
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 employees 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.
Warehouse employees should be instructed in proper lifting techniques. Safety equipment should be provided as necessary. Work with prisoners can be particularly hazardous as workers may be assaulted or killed. Health care workers should be trained in the proper handling of bodily fluids.
Shelter house workers must be able to handle unruly individuals and may be exposed to contagious disease from clients. Camp workers must be trained to handle outdoor emergency situations such as drowning, falls in rough terrains, and incidents with animals or insects.
Drivers must be trained in driving the vehicles, plus methods of loading and unloading of passengers and goods. There is a special concern with working with the disabled because of the potential for making an already difficult physical situation worse.
Clients must be supplied with appropriate safety gear and be adequately supervised based on the type of job and the level of disability. Handling donations may include exposure to hazardous substances, insects or vermin, or communicable diseases.
Property exposures include offices, donation centers, processing locations, retail stores, and warehouses. Ignition sources include electrical wiring, heating, and air conditioning systems. Operations may be conducted from older church buildings. All heating and electrical wiring should be up to date and meet current codes for the occupancy.
Warehouse storage should have proper shelving, wide aisle-ways and separation of flammables from combustibles. Cleaning and mending 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 combustibles.
When food services are provided, there should be controls such as automatic shut-off devices and temperature controls in place and maintained. 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 exposure comes 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. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.
Bank drops should be made throughout the day to prevent a buildup of cash on premises. Audits should be periodically conducted, preferably by an outside firm.
Inland marine exposure includes accounts receivable for fee-services and promised monetary donations, computers, goods in transit, and valuable papers and records for client information, donor lists, and documentation for government and private grants.
All records must be duplicated and kept off site for easy restoration in the event of a loss. Goods in transit include donated goods to be resold and items transported to emergency sites.
Business 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 clients, including disabled persons, the exposure increases.
Any driver must be licensed for the type of vehicle being driven and have an acceptable MVR. Vehicles must be maintained, with records kept at a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8661 Religious Organizations, 8322 Individual And Family Services
- NAICS CODE: 813110 Religious Organizations, 624110 Child and Youth Services, 624120 Services for the Elderly and Persons with Disabilities, 624190 Other Individual and Family Services, 624210 Community Food Services, 624221 Temporary Shelters, 624229 Other Community Housing Services, 624230 Emergency and Other Relief Services, 624310 Vocational Rehabilitation Services
- Suggested ISO General Liability Code(s): 41650, 16881, 47474, 48600
- Suggested Workers Compensation Code(s): 8864, 8868, 8017
Description for 8661: Religious Organizations
Division I: Services | Major Group 86: Membership Organizations | Industry Group 866: Religious Organizations
8661 Religious Organizations: Establishments of religious organizations operated for worship, religious training or study, government or administration of an organized religion, or for promotion of religious activities. Other establishments maintained by religious organizations, such as educational institutions, hospitals, publishing houses, reading rooms, social services, and secondhand stores, are classified according to their primary activity. Also included in this industry are religious groups which reach the public through radio or television media. Establishments of such religious groups which produce taped religious programming for television are classified in Industry 7812, and those which produce live religious programs are classified in Industry 7922. Establishments of such groups which operate radio or television stations are classified in Communications, Major Group 48.
- Religious instruction, provided by religious organizations
- Religious organizations
- Shrines, religious
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
Salvation Army Insurance - The Bottom Line
The right Salvation Army insurance coverage is vital for protecting the local operations. To find out what types of options are available including how much coverage you should have and how much the premiums will be, speak to a reputable business insurance agent.
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
- Credit Union
- 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.