Non profit companies make a large portion of the small business community. According to Andrea Wells of MyNewMarkets.com, “This critical sector represents more than 1.5 million organizations and accounts for almost 10 percent of all salaries and wages paid in the United States.” That represents a large customer base for insurance agencies and carriers and it is also a huge amount of organizations who need proper coverage. In the past, many insurance carriers have for years restricted coverage for non-profits and charitable organizations. They restrict coverage to this industry due to a larger historical claims history and their exposure from the high number of volunteers who serve these organizations. As the Non-profit sector takes up more of the business community, some insurance companies are beginning to see the light and tapping in to this industry.
A few of the main risks these companies face are dealing with the high number of volunteers they work with. No matter how good your training/volunteer program is, there is not way a volunteer giving their time is going to take policies as serious as a paid employee. The other big risk facing non-profit organizations is the travel exposure. Many of these organizations travel to the areas they serve. While they are travelling to and from these locations they are covered by a standard workers compensation policy. Travel exposure historically causes more claims and the claims tend to be more severe.
Here is a list of all NCCI classification codes included in the non-profit industry.
8864 Social Services Organizations. This classification is applicable to organizations that provide social services to mentally, physically, or emotionally challenged individuals, troubled youth, abuse, drug related activity, etc.. Types of services provided may include meals, counseling, case management, education, employment, and training, and very limited medical services.
8842 Group Homes. This code contemplates facilities with overnight stays and applies to most group homes, rescue missions, temporary shelters independent supportive living, and training centers for mentally, physically, or emotionally handicapped clients.
7720 Juvenile Detention Centers. Includes halfway houses, boot camps, homes for convicts, and correction facilities.
8742 Social Services Professionals. The common class code for adoption services, community outreach workers, foster care placement, and social workers.
8833 Hospital Professionals. This class is for medical professionals engaged in treatment for drug and alcohol, detoxification, battered women’s shelters, convalescent homes and respite services.
9040 Hospitals- Non Professional (non-medical). Applies to above whereas employee is not medically trained such as maintenance, laundry, food services.
8837 Charitable and Welfare Organizations- MA, TX, WI. Includes organizations that collect, recondition and sale items in their stores.
8861 Charitable and Welfare Organizations- MO, NV, VA. Applies to most organizations that provide charitable or welfare assistance to the needy, challenged, or abused. Organizations may provide accommodations, meals, counseling, etc. Class may include residential mental health facilities, residential care, community food service, shelters, and vocational rehabilitation services.
9063 YMCA, YWCA, YMHA, and YWHA institutions.