While there are over 900,000 agencies, over 820,000 of them have no employees. Most rely heavily on volunteers to effect the services they provide. There are more than 100,000 small commercial enterprises, at least 7,000 middle market and 113 national enterprises. However, this doesn’t mean that their premium volume is small. It actually approaches $1 billion!
For more information:
MarketStance website: www.marketstance.com
Email: info@marketstance.com |
|
Social service agencies serve in big and little ways. They may provide meals and company to the elderly, childcare to the young, or safe havens for recovering addicts. The service recipients can be of any age, race, gender or economic status. Many agencies rely entirely on volunteers. Some have a small paid staff that coordinates the services provided by the volunteers and works on grants and fundraising. Still others may be almost entirely paid staff with volunteers helping only on fundraising activities. The types of service provided determines the appropriate type of staffing.
Funding comes from many sources. Government funding may be the primary source or just a minor part. However, in many cases, private funding is the foundation for the organization because the contributors are often the ones who help set the vision of the group. Although some clients may pay for some of the services, those payments alone are normally not sufficient to sustain the agency. |
According to our figures from MarketStance, there are 939,068 agencies. However, according to Mike Mullens, social service program manager of London American Risk Specialists, there are just over 250,000 agencies. Which number is right? Actually, both are, because the size of the market is based on which service providers are included. Day care represents a significant portion of the total but many social service specialists do not include them in their discipline. Sheila Shaw, vice president underwriting, Irwin Siegel Agency, Inc., says, “Social service is a very broad category that incorporates many different types of insured clients, from advocacy organizations that provide very little, if any, direct services all the way to large multifaceted organizations that provide residential services, including medical services, to their clients.”
Burns & Wilcox includes adoption agencies, alcohol and drug rehab centers, community action programs, sheltered workshops, meals on wheels, in-home assistance, humane societies, social clubs, art and cultural organizations, and youth recreation centers as just a few of the many health and human service nonprofit organizations it considers social service agencies according to Ken Laderoute, vice president of underwriting.
According to our experts, the market is fairly open for these risks and many are placed with admitted carriers. However, Katie Detroit, area vice president and manager-social services, National Insurance Professionals Corporation, a division of Risk Placement Services, Inc., believes that because social service agencies encompass various types of exposures and coverage requirements can be changed by regulations, it is vital for these agencies to work with carriers or underwriters with specific knowledge of their industry.
Nancy G. Williams, vice president, marketing and sales, NIF Group, Inc., points out that, while admitted paper is available most of the time, “the more difficult exposures such as adoption, foster care, difficult medical exposures and accounts with claims problems may be placed in nonadmitted markets.” Ms. Shaw added youth residential services and incarceration programs while Mr. Mullens sees nonadmitted paper used on most of the agencies he works with.
Click here for the complete article … |
