Washington Native Plant Society Coverages and future Options Non Profit Insurance Washington Native Plant Society Coverages and future Options

WNPS Current Coverages General Liability Coverage = Insurance designed to protect business owners and operators from a wide variety of liability exposures. Exposures could include liability arising from accidents resulting from the insured's premises or operations, products sold by the insured, operations completed by the insured, and contractual liability. Current policy includes: General Liability Non Owned Auto Coverage Property damage coverage Medical coverage per incident

Current Coverage # 2 Directors & Officer Coverage = Protection against a breach of "duty" by the directors and officers. D&O pays for actual or alleged wrong decisions, what the policy calls "wrongful acts." Although each insurer defines coverage in its own way, D&O insurance generally includes: "any actual or alleged act or omission, error, misstatement, misleading statement, neglect or breach of duty by an Insured Person in the discharge of his/her duties."

WNPS Current Insurance Policies Philadephia – D&O Coverage (Directors & Officers) 1) Non Profit Directors & Officers Liability Insurances 2) Employment Practices Liability 3) Fiduciary Liability Insurance 4) Work Place Violence Insurance 5) Internet Liability Insurance Liberty Mutual General Liability Includes: General Liability - $1,000,000 Employment practices waived Some Property coverage for office premises included. Hired auto coverage Some medical coverage per occurance

Current policy Issues Philadelphia D & O Policy Consistent coverage year over year. Annual premium has remained flat for 4 years Rate = $1,172 per year Renews in May annually Liberty Mutual – General Liability Significant increase in 2016 after review by our Insurance agent. Prior policy was based on 300 members and in place since 1997; and after viewing our website, was upgraded to 1400 members. 2015 Policy Cost= $733 2016 Policy increased to $2,058

WA Non Profit Insurance Alliance - ANI In researching alternate options for insurance – Insurance designed for the non profit sector Group policy – which provides for shared resource amongst non profit sector Comprehensive services for many insurance products Complete & updated risk management resources for non profit operations Ease in claim processing Relatively young company, developed in California – branching to additional states In California offering rebates for unused premiums to non profits Funded by a grant from Bill & Melinda Gates Foundation and Paccar Family Foundation in Washington – starts ANI program Comprehends and designs programs fit for the non profit sector

Research Forward – Comparative Programs Liberty Mutual General Liability American States Insurance Co. General Liability coverage for incidents up to $2,000,000.00 general aggregate. Each occurance $1,000,000 Damage to premises $1,000,000 Medical expenses $10,000 Personal & adv injury $1,000,000 Hired Auto General Liability $1,000,000 Stop Gap – Employee Liability $1,000,000 Includes rental property coverage $100,000 ANI General Liability General Liability* coverage for incidents up to $2,000,000.00 general aggregate. Each occurrence $1,000,000 Damage to premises $1,000,000 Medical expenses $20,000 Personal & adv injury $1,000,000 Hired Auto General Liability $1,000,000 Stop Gap – Employee Liability $1,000,000 Requires additional Property insurance for rental office premises - $300.00 for $500,000 coverage *includes Alcohol coverage

Directors & Officers Comparative Quotes Philadelphia Coverages are essentially the same, with similar resource libraries available Resources include, Intellicorp background checks, Risk management support, Employment law resources Cost $1,172 annually ANI General coverage for Directors and Officers, comparable to the existing coverage, however the difference surrounds the

Additional Information Assured Partners Insurance or Redmond General Insurance Company Represents Liberty Mutual, Philadelphia, American States, and ANI Insurance Companies Comprehensive broker services with a base of Non Profit Clients, Bob Russell, Agent This organization comes highly recommended by the ANI organization, as per Vice President of Marketing and Sales. Bob Russell recommends ANI for the following reasons: -”ANI is by far my favorite due to service, claims adjustment, member resources like risk management materials and its dedication to the non-profit sector.” ANI is recommended by the Washington Non Profit organization. As Assured Partners also represents Philadelphia, and Washington Native Plant Society has a standing policy with Philadelphia, at a significantly lower rate than can be obtained through ANI, Bob recommends remaining with Philadelphia, recognizing that the “Claims made basis” clause could create an issue if discontinued. Not carrying D&O coverage with ANI does reduce the Employment Law resources available, however Philadelphia does provide some similar resources, which Bob’s firm could assist in acquiring.

Assessment The existing broker for WNPS has limited interest in providing services in the non profit sector. Requests tend to be driven towards sales of additional insurance policies or coverage which are not needed. A new broker relationship will advance the support needs of WNPS as a non profit, and make additional resources accessible. ANI provides group coverage with other non profits and the potential of future programs rebating unused premiums in the State of Washington. ANI provides risk management resources and more comprehensive coverage than the current Liberty policy, with only $ difference annually. Directors and Officers coverage with Philadelphia is currently stable. This low cost coverage is makes more sense to retain at this time. Additional research of the resources available in the Philadelphia program is needed to take full advantage of the product. While the additional resources available in the ANI D&O program are very attractive, the cost is prohibitive at this time.

Requested Recommendations Questions and comments? It is possible to split from the existing Liberty Mutual agreement at 6 months, with refund of unused premium, if it was deemed desirable to move forward. Recommend Executive Committee final decision regarding ongoing coverage for the society. Moving forward with ANI in place of Liberty Mutual will increase insurance budget to $3,549.00 annually for General Liability, Property, and Directors and Officers coverages.