Many nonprofits work under strict budgets, so when adverse expenses present themselves it can often lead to financial ruin. Getting the right insurance to safeguard against these unexpected and unwelcome expenses is a wise move for nonprofit organizations. Please review our nonprofit insurance content and contact us with any questions you may have. We will more than happy to quote your business and find what suits you best!
If you have any questions about insurance or can’t find what your looking for, contact us.
General Liability Insurance
A general liability policy or commercial general liability insures your nonprofit organization against classic slip-and-fall scenarios. Your nonprofit will be covered for damages that it’s ordered to pay to a visitor, customer, supplier, or associate who is injured on the organization’s property. Situations such as this that happen to employees are covered under worker’s compensation, not general liability.
Bring on the rain, wind, fire, snow, and vandalism. Your property insurance will protect your property, whether rented or owned, against these types of situations. It is important to make you’re your policy not only covers the building but any office furniture, computers and accessories, inventory, lighting systems, and carpeting just to name a few.
Basic policies will usually cover these items. Ask your agent to carefully explain your deductible and what types of losses or property damage will not be covered under the policy. Flood insurance is usually sold separately and your organization may have to pay extra to have theft coverage included.
Auto liability insurance is a must, if your staff or volunteers use any vehicles for your nonprofit’s activities. Your state may even require you to purchase a minimum amount of coverage. The insurance will pay for injuries a driver causes to other people or property while carrying out your organization’s business. Depending on your state’s law, it may also require additional auto insurance, such as, personal injury protection and uninsured/underinsured motorist coverage.
Product Liability Insurance
Let’s say your nonprofit sells products to the public — for example, you raise money by selling baked goods, product liability insurance would be a good purchase for your organization. Product liability insurance will protect your organization from lawsuits by customers claiming they were hurt by an unsafe or defective product you provided. For example, if a customer breaks a tooth biting into your baked goods, this insurance will cover the legal defense and a considerable portion of the damages.
Directors and Officers Insurance
Your nonprofit’s board of directors may someday be personally named in a lawsuit against your nonprofit claiming fraud or financial mismanagement. In such a case, you’d want directors and officers insurance to cover the cost of defending the directors and officers and pay any resulting money damages.
Professional Liability Insurance
Professional liability coverage protects nonprofits against liabilities resulting from mismanagement of the business, as well as claims such as discrimination or sexual harassment. It covers not only directors and officers but also staff, volunteers, and the nonprofit organization itself.