When life is full of increasing expenses, it is sometimes very tempting to move insurance down the “essential” list.  After all, bad things may never happen!  But we’ve all heard the stories about fires and floods and accidents that leave people thinking “I wish we had been insured…”  That is as true for choirs and other nonprofits as for individuals and for families. 

General liability is the essential coverage that every nonprofit should carry. It covers property damage or injury to a person on the organization’s watch. Many performing venues require significant liability coverage from organizations using their space. When you name the venue as an “additional insured” under the policy, your insurance company should supply a certificate of insurance that you can provide to the venue. 

Directors and officers insurance (sometimes called D&O) protects the personal assets of board members and designated employees from lawsuits related to their work for the organization. Without D&O insurance, if a creditor sued for financial mismanagement or a former employee brought a suit for breaking employment laws, your board members’ personal assets could be at stake. In a small organization with a stable budget and no employees, that may be less of a risk than in, for instance, a festival with a variable audience, but it is essential in either situation that all financial decisions are formally debated, voted on, and clearly minuted.

In larger groups, D&O can be combined with employment practices liability, which covers claims made by employees for hiring and firing practices, discrimination, and harassment. It protects the organization from claims that formal policies are not being followed. Most small choirs have contract employees rather than salaried ones, and workers’ compensation insurance may not be an issue, but in both cases, contracts should be clearly defined.

Property insurance is as important in choir life as in your personal life. Commercial property insurance covers business property like furniture, supplies, and equipment. It pays to repair or replace items that are stolen or damaged in a fire or natural disaster. When shopping for property insurance consider whether to insure your property for its actual cash value or its replacement value. If your well-used risers get broken and new ones cost $12,000, but the depreciated value of yours is $5,000, you won’t be able to replace them with an insurance payout for their actual cash value.

There are other insurance possibilities to consider – not part of what is currently offered, but you can discuss this further with the insurance agent if you feel the need for any of them:
An amendment to general liability insurance, abuse and molestation (also called improper sexual conduct and physical abuse liability) covers the organization in the event of allegations of abuse.  Children and youth choruses, schools, and other programs where adults are working with children may be required to have it.

Volunteer and/or student accident insurance provides medical coverage for volunteers injured while engaged in chorus activities. It is included in most comprehensive general liability policies; make sure it’s included in yours so that your volunteers (including volunteer singers) are covered.

Cyber liability insurance is becoming more popular because of the hacking, phishing, and computer intrusion that are almost daily occurrences in the performing arts. It covers business interruption, data loss, and liability for lawsuits (for example, if patrons’ personal data is stolen). 

Where does BCCF come in with all this?

For years we have held an umbrella insurance policy for $2 million which enables BCCF member choirs to piggyback their own policies onto ours. Originally this was GNK Insurance; when insurance rates took a steep jump upwards a few years back, companies bought each other out or melded, and we tried to get the best deal for us and for BCCF choirs. It’s not cheap, but insurance through BCCF’s arrangement is almost bound to be much less than finding an individual policy. 

Currently, the insurance company we work with is Waypoint. Individual member choirs need to contact them on their own to figure out what they need for their varying levels of insurance. It is basically third party liability, but assets such as music, risers, etc. can be added, as well as Directors and Officers Liability, if needed. Current membership in BCCF is the only requirement. 

Our contact person is Gosia Kubacki:  250-618-9519 / 866-674-2816 ext# 1257  / choir[at]waypoint.ca

Please contact her for further information.