Employee dishonesty coverage is designed to insure against an employee’s fraudulant or dishonest act, such as embezzlement. According to the U.S. Chamber of Commerce, a third of all employees steal from their employers, and many of the business failures in this country can be linked to employee theft. Most fraud happens to small employers with fewer than 100 employees. This coverage can be purchased with property coverage.
Property coverage is purchased to protect the physical assets you own or lease such as buildings, office equipment, furniture, fixtures, etc. When considering property coverage, it is important to have a thorough inventory of all physical assets, and to make sure the property is accurately valued and adequate coverage limits are purchased.
Coverage is available on Special Form or Standard Form. Business Income coverage and Extra Expense coverage are included in both coverage forms. The standard form provides coverage on a named perils basis. The special form provides coverage for risks of direct physical loss or damage. Most nonprofit buyers opt for the special form.
- Deductible amounts of $250, $500, $1,000 and $2,500 available. The $500 deductible is the basic deductible offered
- An Extension endorsement is automatically quoted for all accounts for 10% additional premium. This broadening form provides many coverage options over and above the regular policy form. Highlights include:- Pollutant Clean Up and Removal
– Fire Protection Equipment Discharge
– Business Income from Dependent Properties
– Personal Property off-Premises
– Outdoor Property
– Sewer Backup
– Personal Effects and Property of Others
The following coverage options are also available:
- Mechanical Breakdown coverage for boilers and pressure vessels and air conditioning units.
- Employee Dishonesty coverage at limits of $5,000, $10,000, $25,000, $50,000, or $100,000. Coverage is automatically included to cover volunteer workers.
- Money and Securities coverage on premises and off premises (maximum $100,000).
- Accounts Receivable on an “all risk” basis not to exceed $250,000. A $10,000 limit is automatically included in the coverage form.
- Valuable Papers coverage on an “all risk” basis not to exceed $250,000. A $10,000 limit is automatically included in the coverage form.
- Exterior Glass Coverage – Building owner: covered under building value; Tenant in building: covered under contents limits.
- Outdoor Sign coverage for signs which are property of the nonprofit, or property of others in your care, custody, or control.
- Spoilage coverage for loss of perishable stock caused by breakdown or contamination and/or power outage. The maximum limit per location is $50,000
- Building Ordinance or Law coverage with three coverage options. Option one is coverage for loss to the undamaged portion of the building. Option two is for demolition costs. Option three is for increased cost of construction.
Accident insurance provides a limited amount of coverage for injury to a student/volunteer/participant (depending on the specific coverage) on a no-fault basis. It is not workers’ compensation coverage! Under commercial general liability, it is typically necessary to establish fault before a payment is made. However, accident insurance pays, regardless of fault, and may apply prior to an individual’s health insurance or in excess of it, depending on the particular policy. Limits up to $250,000 are now available.
Accident insurance may be provided if general liability coverage is provided by ANI.
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