Basic Nonprofit Insurance Coverage
Every nonprofit organization requires a basic form of insurance coverage, especially if they are serving public causes. Below are two of the most essential coverages for nonprofits:
A general liability insurance policy is considered one of the top policies that every conscientious nonprofit should have in place to cover common risks such as injuries at locations where your nonprofit operates.
This insurance covers issues such as slip-and-fall accidents, slander and libel lawsuits, advertising claims, and damages to clients’ property. It also covers judgment or settlement money, defense costs such as attorney’s fees, and court costs in the event of a lawsuit.
Our professional liability insurance policies can cover your nonprofit’s legal expenses should an oversight or mistake on your part lead to a lawsuit.
Some types of lawsuits that it can cover include suits stemming from mistakes made while your nonprofit is providing services or claims of professional negligence or failure to perform your professional duties.
Additional Solutions For Nonprofit Organizations
While not required for all nonprofits, there are several forms of coverage nonprofits can obtain to ensure they are best protected against liability and other issues.
If your nonprofit regularly uses vehicles, it is important to keep in mind that they are not covered by the driver’s personal car insurance policy. Your nonprofit needs commercial auto insurance for liability coverage to pay for injuries arising from accidents that involve your vehicles as well as damages to third-party property.
Workers Compensation Insurance
Workers compensation insurance is useful if someone on your staff is injured at work. Although some nonprofits carry out riskier work than others, even people working in desk jobs can become sick or injured at work. This type of policy will cover your employees’ lost wages and medical care as they recover.
Product Liability Insurance
If your nonprofit sells products to the public, such as crafts or baked goods at fundraisers, product liability insurance offers protection from lawsuits filed by customers who claim that an unsafe or defective product that your nonprofit sold them caused them harm. It can help to pay for legally defending these claims and may cover some or all of the damages.
Directors And Officers Insurance
Your nonprofit’s board of directors and officers could be personally named in a lawsuit that alleges fraud or financial mismanagement, even if they are only serving in a volunteer capacity. This type of policy can cover costs related to defending directors, and having this type of coverage in place can help your nonprofit to attract qualified board members and directors.