The Nonprofit:
A nonprofit operated a group living facility, providing supervised 24-hour care to residents with varying degrees of special needs.
As part of enrollment, parents and legal guardians were required to disclose any known medical conditions or special needs so accommodations could be made.
They also signed consent forms allowing staff to administer medications or treatments when necessary.
The Incident:
One day during a meal time, a resident who had documented issues around swallowing food, served himself and choked.
The supervisor on duty didn’t notice the resident was in distress and emergency protocols weren’t activated until it was too late and the resident ultimately passed away.
The Legal Action:
After it became clear that the resident had been able to serve themselves food and choke on it without the supervisor noticing or intervening, the resident’s family expressed serious concerns about the level of supervision at the facility.
The Coverage:
After the incident, the nonprofit notified its insurance broker, who initiated the claims process for the organization’s Social Service Professional policy with Nonprofits Insurance Alliance (NIA).
The Result:
NIA’s claims examiner reviewed circumstances around the incident, including the nonprofit’s policies and protocols related to proper supervision and emergency procedures.
Based on this review, the incident raised questions about the level of staff supervision and emergency training, and how both were handled.
NIA worked with the resident’s family, and the matter was resolved through settlement.
Things the Nonprofit Did Well:
Because the nonprofit had collected medical information and consent forms during enrollment, it helped staff be aware of the resident’s difficulties when it came to eating.
How Can Your Nonprofit Protect Itself?
When nonprofits have vulnerable people in their care, many consider the level of preparation for the event of an emergency, what proper supervision entails, and how staff are trained for an emergency scenario, especially in the day-to-day routine at their primary facility.
Clear communication, appropriate staff-to-client ratios, training, and documentation can help organizations respond effectively when unexpected medical situations arise and support thoughtful review if questions follow.
NIA Resources:
Nonprofits insured by NIA have access to My Risk Management Plan, an online set of tools designed to help organizations develop a risk management plan tailored to how the organization operates and defines its goals.
NIA also provides insured nonprofits with access to a library of risk management e-books that address specific types of risk.
For organizations that host events or off-site activities, this includes “Sound Advice for Functions and Events: Tips for Staging Safer Special Events,” which is available online and in PDF format.
From the Claims Files stories are for general information only. They are simplified examples and do not guarantee coverage, a defense, or any specific outcome. Some losses described in this series may not be covered.
Coverage depends on the specific facts and on the terms, conditions, and exclusions in your policy. Contact your insurance broker or agent for guidance, and follow your policy’s claims reporting procedures if an incident may involve a claim.
This story is not legal, medical, financial, or professional advice. In an emergency, contact local emergency services first. Any risk management practices mentioned are general suggestions and may not apply to every nonprofit. Follow all applicable laws, licensing rules, and reporting requirements.
