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D&O Risks to Non-Profits

Non-profits file D&O claims twice as much as for-profits. Learn more about this growing risk and D&O coverage specifically designed to meet the needs of non-profits.

Why D&O Policies are Vital for Non-Profit Organizations

Running one of the 1.5 million non-profit organizations in the United States is a fulfilling and meaningful experience. It also brings significant risks and loss exposures. Every year, non-profit leaders are exposed to Directors and Officers (D&O) claims made against them and the organizations they manage.

With D&O lawsuits on the rise, more and more non-profit organizations are turning to insurance solutions and obtaining Directors and Officers Liability coverage as part of a Management Liability policy.

At Paperless Insurance Services, we have an extensive background in providing coverage for non-profits.

Understanding Management Liability Insurance

Read More »D&O Risks to Non-Profits

Loss of Income in Business Property Insurance

When a business suffers a loss to a fixed physical asset, such as when a fire damaged a building, the insured may incur an interruption to their business which can result in the loss of income and the incurrence of expenses.

The Property insurance policy will define what a business interruption (BI) loss is and will provide guidelines regarding how a BI loss will be calculated. Business interruption is a broad category that applies to an overall loss of income. While forms will vary slightly, two sample definitions of BI are:

  1. Net income (net profit or loss before income taxes) that would have been earned or incurred plus continuing normal operating expenses incurred during the period of restoration, including payroll.
  2. Gross earnings less charges and expenses which do not necessarily continue during the interruption of business operations. Gross earnings are defined as the net sales values of production, net sales from merchandising or non-manufacturing operations, and any other earnings derived from the operations of the business less various costs associated with production of stock and merchandise.

Rental value income (RVI) is another coverage that pays for a loss of income stream. However, the coverage is a narrow category which applies to lost gross rental income from the use of property when the insured leases or rents property out for a profit.

Continuing expenses cannot be avoided and don’t change because there is an interruption in business.  Examples of continuing expenses include taxes, insurance, rent, licenses, payroll of key employees, interest, and debt. Non-continuing expenses may be saved or discontinued if there is an interruption in business.  Examples of non-continuing expenses include salaries of hourly employees, unemployment taxes, and some utilities.

This article examines how BI and RVI losses may treat depreciation after the damage or destruction of a fixed physical asset.Read More »Loss of Income in Business Property Insurance

Insurance for Educational Institutions

UPDATE 08/30/2022: As of today we offer abuse and molestation coverage to all professions and services. Follow the link and answer only 2 questions to receive your accurate premium indication: Get Instant Abuse Insurance Indication Now

For almost 15 years, Paperless Insurance Services agency has offered exceptional and cost-effective insurance solutions for educational institutions. We specialize in Higher Education insurance for colleges and universities with 10,000 or fewer enrolled students and provide excellent insurance products that cover everything from general liability, property, educators legal liability, employment practices liability as well as risk management solutions.

Higher Education insurance is a specialized product with specific coverages designed to protect colleges and universities against the numerous hazards they may face. We offer dedicated insurance packages tailored to fit the needs of our higher education clients. Below are some of the most frequently asked questions we receive about our coverage.

Do we cover college sporting events?
We offer excellent coverage for college athletic events, provided there are CDC concussion procedures in place at the institution. Contact sports injuries like concussions and traumatic brain injuries are a major issue in higher education, costing colleges millions of dollars every year. Our coverage options include participant accident and student accident insurance to protect college staff members and student-athletes in the event of an incident.

Do we cover extracurricular events?
Yes. Colleges and universities often host extracurricular events both during the academic year and during school breaks. We cover a wide range of these extracurricular activities for our higher education clients.

Some examples include:Read More »Insurance for Educational Institutions

Contractors Pollution Liability Insurance

Just about all types of contractors have environmental exposure. From a roofing contractor to an electrical contractor and everything in between, there are various degrees of environmental exposures.

Who needs Contractors Pollution Insurance?

Many contractors have a need for Contractors Pollution coverage, including, but not limited to:

  • Utility, street, and road
  • Plumbing/piping
  • Excavation/grading
  • Heavy highway
  • Water/sewer
  • HVAC
  • Roofing
  • Electrical
  • Mechanical
  • Painting
  • Demolition
  • Dredging
  • Industrial cleaning
  • Fire sprinkler
  • Restoration
  • Drywall
  • Carpentry
  • Environmental
  • General contractors

Environmental Insurance Exposures Facing Contractors

Exposures that face contractors may include disturbance of asbestos, exacerbating contaminated soil, striking an underground storage tank or utility, fumes from equipment or materials, water intrusion that leads to mold, and spills from equipment and vapors, to name a few. Claims tend to be more of a severity issue than a frequency issue.

The following is an example of a Contractors Pollution claim:Read More »Contractors Pollution Liability Insurance

Preventing Child Sexual Abuse in Your Organization

UPDATE 03/08/2022: as of now we can only offer abuse and molestation coverage for the following professions and services: Vocal Coach, Tutor, Computer Lessons, Adult Education, Yoga Instructor, Umpires, Referees and Other Sports Officials, Sports Coach, Personal Trainer, Dance Instructor, Fitness Instructor, Golf Instructor, and Indoor Cycling Instructor all have Abuse and Molestation Coverage.

There have been many alarming stories in the media about sexual abuse of children in athletic organizations, religious organizations, and schools. Organizations have a responsibility to protect the children they support from a sexual perpetrator. Beyond the moral responsibility, some organizations, such as youth sports organizations, are required by law to take specific steps to prevent child sexual abuse. Given the trust-based nature of this crime, it can be very difficult to detect dangerous behavior(s) until it is too late. Among the cases of child sexual abuse reported to law enforcement, 93% involve a perpetrator that the child knows and trusts, such as a relative, care provider, family friend, coach, student leader, or ministry volunteer. Taking additional, cost-effective prevention measures that increase your organization’s barriers to this crime remains in the best interests of the children you support.

Creating a Child Sexual Abuse Prevention Program

It is important for child-serving organizations to have a comprehensive child abuse prevention program in place. Key elements of an effective child sexual abuse prevention program include:Read More »Preventing Child Sexual Abuse in Your Organization

Infographics: Market Value vs. Replacement Cost

Don’t overpay for your insurance. Using industry grade professional rating tools we can help you to calculate the replacement cost (RC) of your property and explain the co-insurance requirements, so you’re paying for insurance only what it should cost you. Remember: if the actual replacement cost of your property is $300K but your insurance policy lists $500, all you get in case of a claim is $300K. However, when you go underinsured and the RC of your property insurance policy (or HO policy) is listed at $300K, while the actual RC is $500K, with an 80% co-insurance you will only… Read More »Infographics: Market Value vs. Replacement Cost

Four Key Additional Insured Endorsements for Contractors

IMAGE: Four Key Additional Insured Endorsements for Contractors

Contracts record specific promises agreed to between parties. At best, contract negotiations can be time-consuming, complicated and frustrating. Construction contracts are no exception. One of the promises that the parties make to each other is the kind and amount of insurance required for a construction project. Project owners will require contractors on a project to name the project owner as an additional insured on the contractor’s casualty insurance program (excluding workers’ compensation). General contractors will require subcontractors to do the same. It is very important that project owners and contractors alike — ‘the parties’ — understand the coverage provided by additional insured endorsements. It is equally important for the parties to understand what limitations or conditions are found in these endorsements.

Additional Insureds

Project owners request to be an additional insured on a contractor’s casualty program for several reasons, including but not limited to the following:Read More »Four Key Additional Insured Endorsements for Contractors

DMV Reporting – what’s new

As of September 2018, 37 states require carriers to report coverage on vehicles they cover to departments of motor vehicles. Many states require data for commercial vehicles and have rigid timelines for reporting based on the coverage effective date. Some states are considering fines for continually exceeding their timelines. Police patrol cars now scan vehicle license plates for up-to-date insurance coverage and are more likely to rely on DMV supplied information rather than an insurance ID card. It has never been more important to provide timely and accurate information for DMV reporting.

The information below is to inform you of how DMV accomplishes reporting, what is reported when the reports are submitted, and what can happen if there is no report.

Read More »DMV Reporting – what’s new

Claims Reporting: Better Late than Never?

A common in the claim process is the late reporting of claims.
There are many reasons for missing a reporting deadline; however, in most cases, they will not matter. We have seen the courts stand behind the strict reporting requirements of the insurance policy. The policy is a binding contract between the two parties, and the provisions are usually very clear. We have yet to see a “sympathy clause” in an insurance policy.

Claim Reporting Requirements

An insurance policy is not tested until there is a claim made against it. Most policies are straightforward regarding the acts or events that are covered. Insurance policies also spell out the proper way to submit a claim to the insurer. Within the reporting requirements, you’ll often see time requirements, as well as a list of the information that must be included, that establish sufficient notice of claim or loss.Read More »Claims Reporting: Better Late than Never?

Tax Recapture Insurance Policy

Each calendar year, the Internal Revenue Service (IRS) makes modifications and amendments to the tax code, but through each iteration, the Low-Income Housing Tax Credit (LIHTC), Solar Investment Tax Credit (ITC) and Historic Tax Credit (HTC) have remained intact. These credits were created to encourage the flow of private funds into specific solar, low-income housing and historic preservation projects. When a guideline-compliant project is completed and tax credits are generated, taxpayers (e.g. public and private entities, as well as high net worth individuals in certain instances) can apply the credits on their federal and state tax returns.
Read More »Tax Recapture Insurance Policy