Risk Management/Insurance
Organizations need insurance to protect the organization and the board of directors, and to help cover the costs associated with property damage and liability claims. Without insurance, an organization may have to pay out-of-pocket for costly damages or legal claims. Most organizations need, at a minimum, casualty insurance (general liability, workers' compensation and auto), and property insurance. (UGA Article 24.1)
As part of the Uniform Grant Agreement (UGA) Article XXIV - Insurance, Illinois Department of Human Services' (IDHS) providers are required to maintain in full force and effect casualty and bodily injury insurance, and insurance sufficient to cover the replacement cost of all real or personal property acquired with IDHS grant funds. Some grant programs may require additional insurance that is usually listed in either Part Two or Part Three of the UGA.
Casualty Insurance
Casualty insurance is a group of liability policies that protect a provider from any liability claim filed against the organization. These include:
General Liability - provides protection from liability if a third party suffers bodily injury or any other accidents on your property. Damage to property and advertising injury also are covered under general liability insurance.
Workers' Compensation - protects your employees from on-the-job injuries. If an employee is injured at work, it covers their medical expenses and a portion of lost wages. In Illinois, employers must provide Workers' Compensation Insurance for almost everyone whose employment is localized in Illinois. Providers are obligated, per the UGA to be compliant with all State and Federal laws.(820 ILCS 305)
Auto Insurance - protects your organization and employees if vehicular accidents occur that damages another vehicle or property during work related trips. It is a required coverage for vehicles owned by the provider. (625 ILCS 5/7-601).Hired auto coverage is recommended and provides coverage for employees who operate a rented, leased or borrowed vehicles to conduct business on behalf of the organization
- Non-owned auto coverage is recommended and provides coverage to an organization that has employees using their own personal vehicles to conduct business on behalf of the organization. It provides extra coverage over the employee's personal auto coverage for bodily injury and property damage liability.
Property Insurance
Property Insurance covers a provider's physical building and all their assets (e.g., inventory, products, equipment, furniture, and personal property) from damage due to fire, theft, natural disasters, and vandalism. It is necessary if you own or lease your property. Insurance for real estate, such as leased office space, does not cover the provider's assets and would only provide protection to the landlord's interest. (UGA Article 24.1)
