In recent years, insurance has been a hot topic among our members, with many expressing concerns about rising costs and the lack of funding to offset them. For hospices, insurance isn't just a nice-to-have; it's a critical safeguard against a range of liability risks. As Carlene Forde noted, 'while many small groups assume that a simple liability policy and a basic property package are sufficient...the reality is far more complex'. Forde argues that non-profits often underestimate the breadth and depth of their insurance needs, facing unique challenges such as funding shifts and reduced donations, compounded by rising insurance costs . This complexity arises from the unique challenges hospices face, from ensuring the safety of patients and staff to protecting against potential lawsuits. Without adequate insurance, programs and services simply cannot happen.

The reality is that hospices are facing a perfect storm of rising insurance costs, increasing risks and challenges with funding. According to Hub International's Nonprofit Outlook report, insurance premiums for nonprofits are expected to rise between 7% and 20%. This surge is driven by factors such as social inflation, which refers to the increasing tendency of juries to award larger damages in lawsuits. Additionally, the growing threat of cyberattacks and data breaches has made cyber liability insurance a necessity for many nonprofits, further adding to their financial burden.

How do hospice societies and other nonprofits navigate this "perfect storm"? Unfortunately, there is no Staples "Easy" button for this. Here are a couple of suggestions :

• Form a good relationship with your insurance broker. Ask your broker to provide a detailed breakdown of your policy, including all exclusions and limitations. Also, inquire about potential discounts or risk management strategies that could help lower your premiums.

• Include the necessary insurance costs in project and program grant budgets. When preparing grant proposals, research the average cost of insurance for similar projects and include a line item for insurance expenses. Be prepared to justify this expense to grantors by explaining the importance of protecting the organization and its beneficiaries.

We encourage you to reach out to us via email at adam.webber@bchpca.org or through our online member forum to share your experiences and challenges with insurance. Your insights will help us develop more effective solutions and advocate for your needs.

Links:

Not-for-profits' insurance challenges often misunderstood, says expert | Insurance Business Canada

2024-Outlook-Nonprofit-CAE.pdf

Rise in civil litigation sparks social inflation concerns