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Abusing the Not For Profit

Not for Profit Insurance

Not For Profit groups are looked upon as the ‘do-gooders’ in the community and it is imperative that their reputation remains perfect for them to survive.

We all know of one-or-two organisations who have had Sexual-Abuse claims that have hit the Media in full-force and ruined their reputation…. even years after the claim has been made their reputation is still mud.

Broaden your mind from religion-based, children-based organisations and look towards other vulnerable groups - rural families who open their doors to the community, the disabled or the elderly.

Often Sexual-offenders often appear normal from the outside. You can screen your volunteers and implement Internal Procedures yet this will not protect the organisation. An allegation alone can trigger an investigation and cost the organisation millions and a loss of reputation!

This is when every committee member becomes affected.

There are a variety of insurers who can offer Molestation or Sexual Abuse insurance coverage and below are 5 Questions a Not For Profit group should seek answers to;

How much is covered in the aggregate, and per claim? What are the costs for higher alternatives?
Are defence costs in addition to the sum insured, or included in the sum insured?
How is the cover worded – sexual abuse, physical abuse? Does this include emotional abuse?
Is the coverage a claims-made wording, or claims-occurring wording?
Does the Insurance company have a copy of your updated procedures to specifically prevent abuse or unfounded allegations?

A claim can be made for unfounded allegations and assist in protecting the organisation (and its accused member).

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Jody Williams - Oracle Group Insurance Brokers, ABN 75 131 025 600, AFSL 363610

This article originally appeared on Jody Williams LinkedIn and has been published here with permission.