Frequently Asked Questions - General Liability Insurance

 

Q: What does the general liability coverage that we purchase through POWR cover?
A: It is a policy that would sustain claims by a third party made against your organization for their injury. For example, if an attendee at one of your educational events fell and injured him or herself, the policy would pay to defend your organization against the claim and pay an award if one were made, within the limits of the policy.

Q: Would the policy cover a member of the public or an employee who sustained such an injury?
A: The policy would cover the organization against a member of the public sustaining such an injury and claiming that the organization was liable. The policy will not cover an injury to an employee; this would be handled under a worker's compensation policy.

Q: Does this cover someone who volunteers for our organization as a watershed monitor, say if they fell while collecting a sample from a stream?
A: The policy would cover a volunteer in such a circumstance if a) the volunteer claimed there was negligence on the part of the organization; or b) if the organization wanted to use the policy to cover emergency care for the volunteer (but would not cover medical bills down the road).

Q: Does this general liability policy pertain to special events held on the water, such as a sojourn or canoe trip?
A: No, watercraft are specifically excluded from coverage. (But stay tuned-we're looking for a policy that would cover sojourns and other on-the-water events).

Q: What is the coverage period for this policy?
A; All of the "endorsed parties" (i.e., the watershed groups on the policy other than POWR) are simply added to our policy, which has a period of 4/14/04 - 4/14/05.

Q: If we pay the $296 minimum cost to become an endorsed party (assuming we're already a member of POWR), in the fall of 2008, and our policy period ends at the same time as POWR's, then aren't we paying a full premium for only a portion of a year?
A: No, because the insurance company is going to prorate the premiums based upon the date they process the application. They will charge POWR a reduced premium based on the period of time your group is covered and POWR will cut your group a check for the difference.

Q: If our group purchases this general liability coverage through POWR, are our directors and officers covered for claims involving their conflicts of interest or financial mismanagement of our organization?
A: No, this is not a Directors and Officers policy. (But stay tuned; we will soon be able to at least link you to a company that offers Nonprofit D&O insurance and an application for coverage by them).

Q: If our watershed group purchased this general liability coverage through POWR, would we be covered for any injuries that one of our directors sustained while attending a public meeting off premises?
A: No, any injury sustained to a director of the organization would be covered by that director's personal health insurance. However, if someone else was injured and claims that a director of the organization caused the injury that claim would be covered under this policy o the extent of the policy limits.

Q: If our watershed group purchased this general liability coverage through POWR, would we be covered for any injuries that one of our employees sustained while attending a public meeting off premises?
A: No, any injury sustained by an employee of the organization would need to be addressed under workers compensation insurance. However, if someone else was injured and claims that an employee of the organization caused the injury that claim would be covered under this policy to the extent of the policy limits.

Q: As an umbrella group, or alliance of watershed organizations, can we buy the premium and cover our chapters?
A: The answer depends on the structure of your organization and the chapters or subsidiaries. If they are independently governed organizations with their own, separate boards of directors, then no, they cannot be covered under your policy. If they are simply branches under the same governing authority, they may be covered.

Q: What is the deductible for the general liability policy?
A: There is no deductible on the policy.