If a small 501(c)(3) animal rescue organization loses its insurance coverage because the insurance companies are getting out of the business of insuring such groups (mostly because of personal injury litigation from animal-related incidents), what is the best course of action? If it restates its mission, it might still have trouble getting insurance because it is operating under the same name. Should it dissolve and form a new entity? Change its name? Transfer any assets/savings to another similar organization?
This is not really a legal question. And I readily admit that I am out of my depth in dealing with insurance coverage issues. But I have a visceral reaction to letting an insurance company dictate how you can run your organization if you are legitimately meeting a real societal need. The insurance industry has created an impression that virtually anything can be insured if you find the right company. I would look for a broker or someone else who understands the industry and can direct you to an insurer who will provide the coverage you need. The animal rescue world is too large for all insurance companies to walk away from it entirely. Your premium may be more expensive than you have been used to, but at least you should be able to continue your work.
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Agree. Our non profit searched for 2 years for a company that was willing to take the time to understand our situation and write a policy. We finally found an agent that found us this company. Keep trying!
I have seen the same issue in California...many of my contacts use the Nonprofits Insurance Alliance of California. Perhaps your state has a similar Alliance? I have also seen a few create a "self-insurance fund" as they called it specifically for such unforeseen events. That MIGHT be an option?
Pls do share who you found! And if you are a foster based rescue or run a rescue at a kennel or are brick and mortar
We were using NIA for almost twenty years but they changed the limits of liability from like $1M to $250K.
Perhaps reach out to other similar organizations and see what company/broker they use.
I am the executive director for an animal shelter nonprofit that in 2023 lost liability insurance coverage from an insurance company that had insured us for twenty years. There are multiple carriers now that specialize in animal liability coverage, including our current carrier, Animal Keepers.
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