Nonprofit Insurance Digest

Nonprofits and the Employee or Independent Contractor Issue

Traditionally many Nonprofits have used “Independent Contractors” for tasks as varied as research, grant proposal development, landscaping, construction, bookkeeping, and day-to-day clerical tasks. The justification for using “Independent Contractors” can take many forms. The Nonprofit may need a specific task completed sporadically; the Nonprofit may not want to incur the expense and hassle of […]
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Nonprofit Workers Compensation and California AB5

Many nonprofits depend wholly or partly on "independent contractors" to provide everything from grant writing, bookkeeping, accounting on up to performing, and landscaping.  Independent Contractor status has always been a "slippery slope" with the Internal Revenue Service and the Franchise Tax Board, often having a very different view of what constitutes an "independent contractor" than the […]
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Workers’ Compensation and Independent Contractors

Outside of general liability claims, lawsuits related to injured workers can bankrupt a nonprofit organization without adequate workers’ comp as well. This type of insurance protects employees who are injured while performing work duties. While the requirements for workers’ comp vary from state to state, most do not require it for 1099 independent contractors. Most states do not require […]
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Non-Profits and the Dreaded Workers Compensation Audit

Nearly all Workers Compensation policies and some General Liability policies are audited by the insurance carrier every year after the expiration/renewal date. This can be a traumatic experience for some nonprofits. The following is an explanation of the audit process and some information that will help you to prepare for a stress-free audit.   What is the Process? Audits may be voluntary […]
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Do You Know How Your Non-Profit Workers’ Compensation Works?

Workers’ compensation, also known as workers’ comp, is a state-mandated insurance program that provides compensation to employees who suffer job-related injuries and illnesses. Workers’ compensation for nonprofits works the same way it does for commercial businesses. In general, an employee with a work-related illness or injury can get workers’ compensation benefits regardless of who was at […]
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It’s Not My Fault! When fault doesn’t matter for Nonprofit Insurance

If it hasn’t been drummed into you yet in my posts then I will say it again.  In order for your General Liability to respond to a claim or a law suit you have to have done something wrong. That “you” is your organization, its employees, directors, officers, and volunteers. That “something wrong” can be defined as acts of negligence, actions or inactions that cause harm to others or others […]
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The Worst Advise I have Ever Heard about Nonprofit Workers Comp

I speak to people all over the country every day about Workers Comp for their Nonprofit Organizations.  It constantly amazes me the amount of bad advice some people get.      Although the laws vary between states there is a requirement in all states that nonprofits purchase the coverage if they have a certain number of employees.  It can be very costly and the premiums reduce the bottom line […]
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Little Secrets about Workers Comp for Nonprofits

Workers’ Compensation, also known as Workers’ Comp, is a state-mandated insurance program that provides compensation to employees who suffer job-related injuries and illnesses. Workers’ Compensation for nonprofits works the same way it does for regular businesses. In general, an employee with a work-related illness or injury can get Workers’ Compensation benefits regardless of who was at fault. […]
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CA Workers Comp Premiums Got You Down?

Yes, the stories you have been reading are true.  Workers Comp Premium is California are on the rise.  They’ve been steadily creeping up over the past couple of years but it seems to be more significant in 2011.  Not only only are rates increasing but that’s not the end of the troubles.  We’ve also seen companies get really tough on final audits as well as with changing classifications and our […]
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