Freeing Workers From the Insurance Trap

The Congressional Budget Office estimated on Tuesday that the Affordable Care Act will reduce the number of full-time workers by 2.5 million over the next decade. That is mostly a good thing, a liberating result of the law. Of course, Republicans immediately tried to brand the findings as “devastating” and stark evidence of President Obama’s health care reform as a failure and a job killer. It is no such thing.

The report estimated that — thanks to an increase in insurance coverage under the act and the availability of subsidies to help pay the premiums — many workers who felt obliged to stay in a job that provided health benefits would now be able to leave those jobs or choose to work fewer hours than they otherwise would have. In other words, the report is about the choices workers can make when they are no longer tethered to an employer because of health benefits. The cumulative effect on the labor supply is the equivalent of 2.5 million fewer full-time workers by 2024.

Full story.

Do non-profits really need insurance if they are helping their community?

The answer to this post’s question is a big “Yes.” The simple truth is that if a non-profit with no liability insurance is named in a lawsuit, the legal costs alone could force it into bankruptcy!

Almost any activity organized by your non-profit can potentially result in a serious injury and lawsuits. Liability insurance protects against two kinds of financial risk:

1.       Defense in court
2.       Payment for damages for which the organization is found liable

Did you know that your volunteer directors can also be sued? D&O insurance is the key to protecting your board members from claims, and it’s also a must-have. D&O coverage includes:

1.       Protection against potential liability to third parties resulting from their acts or omissions on behalf of the organization
2.       Indemnification for claims of failing to fulfill the organizations fiduciary duties
Having D&O insurance can also help you attract and retain top talent because board members don't have to worry about potential lawsuits against them.

Though claims against non-profits are rare, they do happen, and just one claim can be extremely costly unless your organization is insured properly.