Find yourself wondering what insurance is needed for maternity housing? What kind of insurance coverages are needed and what kind of company sells those policies? We dive a little deeper into the topic for you below.
Some types of insurance are regulated, others are industry-standard, and others are optional. Getting the appropriate amount of insurance is a balance of risk assessment. Recognize that insurance companies are motivated to sell insurance policies that often represent worst-case scenarios. Likewise, organizations should protect and prepare themselves for challenging circumstances that may arise. Involving Board members with insurance experience in the conversation may help an organization find its “comfort zone.” Insurance companies are a great resource for advice on how an organization can reduce risk. Larger insurance companies may even have a “risk assessment professional” that can do a site visit to offer feedback and suggestions.
General Liability insurance is related to accidents that may result in bodily or personal injury or property damage. The cost is determined by the insurer’s assessment of risk based on the number of people involved, the size of the facility, the activities of the organization, etc. In some cases, the organization may ask or be asked to be listed as an “additional insured” for specific reasons (i.e. an event held on a rented property). This is common and easily done by calling one’s insurance agent.
Property Insurance or Renter’s Insurance
Property insurance covers the expense of damage to or destruction of the building and its contents. Various factors affect how a property insurance policy is crafted (e.g. replacement cost vs actual cost). Renter’s insurance, used when a property is being leased, covers solely the contents (not the structure). Organizations must weigh the cost-benefit analysis of valuing the contents at replacement cost, even if donated.
Directors and Officers Insurance
Directors and officers insurance (commonly referred to as D&O Insurance) is insurance for lawsuits due to wrongful acts or mismanagement of the organization most commonly related to employment practices. Requiring the organization to have D&O Insurance is frequently an expectation of experienced Board members.
Any vehicles owned by the organization will need to be insured. If the organization does not own vehicles, it may choose to have a “hired and non-owned” policy that augments the private insurance of volunteers and staff members who may be driving on behalf of the organization. Some drivers and/or vehicles are considered higher risk (i.e. young drivers, 15-passenger vans) and will have higher premiums. Homes are advised to avoid any language related to offering medical care as auto policies have been known to group maternity homes into the costly category of ambulatory medicine.
Professional Liability Insurance
Professional liability insurance addresses the liability related to the professional services of counselors, social workers, and other professionals. If the organization is hiring someone with a professional designation as an employee (rather than an independent contractor), it will need to assume professional liability insurance. The issues related to the scope of practice, covered elsewhere, are critical for this reason.
Organizations may choose to take out a life insurance policy on a key employee(s) and name the organization as the beneficiary. This is done if the death of the employee would have a very substantial and immediate impact on the organization.
Worker’s compensation provides coverage for job-related injuries and illnesses and may be required by law depending on jurisdiction and the number of employees.
Life-Affirming Insurance Companies
Heartbeat has a list of preferred insurance companies that have worked well for pregnancy help organizations for years. Click here to learn more.
This and more amazing resources for homes are included in Maternity Housing Essentials - Heartbeat's key resource for anyone starting or maintaining a maternity housing program.