Non profit organizations include a vast array of specialties. Because of this there are many different classification codes for this industry. This industry can include a soup kitchen, a YMCA, a counseling center and even a halfway house. This does not really even begin to tip the iceberg of the types of organizations that could be classified as a non profit organization. There are also many specific risks that each organization faces. These risks will determine how easy it is for an organization to get proper coverage and how much they pay for that coverage.
Many insurance carriers have restricted coverage for non profits and charitable organization for a number of reasons. Most commonly it is due to historical claims and the organizations dependence on volunteers serving these organizations. Some carriers have designed programs catered specifically to non profits and have created programs with better coverage options and lower prices.
When it comes to purchasing commercial insurance, price is frequently a hurdle for most non profit organizations. For many professionals in this industry the price to pay for coverage seems like a less than ideal way to spend the few dollars the organization has. That is why many carriers have designed programs specifically for these organizations who provide services to their communities, but still take on a large risk in doing so. Because of the populations these organizations serve many do take on a fairly high amount of risk.
According to Volunteer Alive, a leading voice in the non- profit industry, the recommended coverages in addition to workers comp are General Liability, Professional Liability (especially if offering counseling services), Volunteer Liability, Directors and Officers Liability, Commercial Auto and Hired and Non-owned Auto Insurance Coverage. Each of these coverages depends on the type and scope of the work the organization partakes in and the type of clients the organization serves.
Below are the classification codes designed specifically for Non Profit Organizations
8864 Social Services Organizations: This classification code is applicable for organizations that provide social services to mentally, physically and emotionally challenged individuals. It also applies to organizations who provide services to troubled youth, abuse victims and drug related activity. Services may include meals, counseling, case management, education, employment, training and very limited medical services.
8842 Group Homes: This classification code includes facilities with overnight stays and applies to most group homes, rescue missions, temporary shelters, independent supportive living as well as training centers for mentally, physically or emotionally handicapped clients.
7720 Juvenile Detention Centers: This classification code includes halfway houses, boot camps, homes for convicts and correction facilities.
8742 Social Services Professionals: This is the common classification code for organizations providing adoption services, community outreach and foster care placement.
8833 Hospital Professionals: This classification code is designed specifically for those organizations that interact in medical services including drug and alcohol treatment, detoxification, batered women’s shelters, convalescent homes and respite services.
9040 Hospitals – Non Professional (Non-medical). Applies to similar organizations as 8833 except the employee is not medically trained. An example of this would be maintenance, laundry and food service workers.
8837 Charitable and Welfare Organizations – MA, TX, WI Includes organizations that collect, recondition and sale items in stores.
8861 Charitable Welfare Organizations – MO, NV, VA Applies to most organizations that provide charitable or welfare assistance to the needy, challenged or abused. Organizations may provide accomodations, meals, counseling, etc. This classification code may include residential mental health facilities, residential care, community food service, shelters and vocational rehabilitation services.
9063 YMCA, YWCA, YMHA and YWHA institutions.