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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:

• What Is Salvation Army Insurance?
• How Much Does Salvation Army Insurance Cost?
• Why Do Salvation Army Locations Need Insurance?
• What Type Of Insurance Do Salvation Army Locations Need?
• What Does Salvation Army Insurance Cover & Pay For?

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.

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.

What Does Salvation Army Insurance Cover & Pay For?

The Salvation Army, like any other organization, can be sued for various reasons. While insurance can help protect them financially in case of lawsuits, it's important to note that it does not prevent lawsuits from occurring. Below are some reasons the Salvation Army could be sued and how insurance can help cover the costs.

Employment-related issues: If the Salvation Army is sued for wrongful termination, discrimination, harassment, or other employment-related disputes, Employment Practices Liability Insurance (EPLI) can help cover the legal defense costs and potential settlements or judgments.

Slip and fall accidents: If someone is injured on Salvation Army property due to negligence, the organization could be sued for damages. General Liability Insurance can help cover the costs of legal defense, settlements, and judgments related to such incidents.

Auto accidents: If a Salvation Army vehicle is involved in an accident and the organization is found to be at fault, they could be sued for damages. Commercial Auto Insurance can help cover the costs of legal defense, settlements, and judgments stemming from auto accidents involving organization-owned vehicles.

Professional liability: If the Salvation Army provides counseling or other professional services and is sued for negligence or malpractice, Professional Liability Insurance (also known as Errors and Omissions Insurance) can help cover the costs of legal defense, settlements, and judgments.

Cyber liability: If the Salvation Army experiences a data breach or cyber attack that compromises sensitive information, they could be sued for failing to protect that information. Cyber Liability Insurance can help cover the costs of legal defense, settlements, judgments, and any required notifications and credit monitoring services for affected individuals.

Directors and officers liability: If the Salvation Army's board members or officers are sued for decisions made in their capacity as leaders of the organization, Directors and Officers (D&O) Liability Insurance can help cover the costs of legal defense, settlements, and judgments.

In each of these examples, insurance can help protect the Salvation Army financially by covering legal defense costs, settlements, and judgments arising from the respective lawsuits. It is important for the organization to maintain appropriate coverage levels and review their policies regularly to ensure they are adequately protected.

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 Workers Compensation Code(s): 8864 Social Services Organization - All Employees & Salespersons, Drivers, 8868 School - Professional Employees & Clerical, 8017 Store - Retail NOC

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.

• Churches
• Convents
• Monasteries
• Religious instruction, provided by religious organizations
• Religious organizations
• Shrines, religious
• Temples

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
• Hotlines
• 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.

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
• Charity
• Church
• Classic & Collector Car Clubs
• Fraternal Organization
• Goodwill Insustries
• Labor Union
• Libraries
• Nonprofit
• Parent Teacher Organization
• Public Administration
• Red Cross Chapters
• Salvation Army
• Social Work Services
• Veterans Groups
• Volunteers of America
• YMCA
• Youth Groups
• YWCA
• 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.