You’ve worked really hard, and you’ve established your nonprofit. You’re up and running, and it couldn’t feel better! But, you may have that nagging feeling, “Am I doing everything I can to protect my organization?” If you’re not insured, you are not. Insure your nonprofit. Given that most nonprofits operate on a tight budget, consult an insurance professional who specializes in nonprofits to be sure that you have the right coverage to best protect your organization. Below are some of the insurance coverages and policies that you may want to consider for your organization:
- Directors and Officers (D&O) coverage – This coverage protects your board of directors and officers (many of whom are volunteers). Their service to your organization puts them at a liability (They can be named personally in a lawsuit against the organization) which deserves your organization’s protection. The best way to protect them is through a D&O policy. You can also read more about why your organization should consider a D&O policy here.
- General Liability Insurance – Many folks refer to this type of policy as a “slip and fall” policy, but it covers much more. Of course it covers bodily injury, but it also covers the cost of damage to someone else’s property after an accident you cause. It also covers defense of personal and advertising injury claims. Many organizations require a general liability policy if an organization wants to rent space, host a special event, or work in partnership with another organization.
- Professional Liability Insurance – Some insurance carriers include or package professional liability into their general liability package. If yours does not, be certain that you have the appropriate coverage for any mentoring, counseling, medical work or other professional services your organization may offer.
- Worker’s Compensation Insurance – Know your state’s rules regarding worker’s compensation coverage. This coverage protects your biggest assets – your employees. The coverage pays for medical expenses, disability and death benefits for injured workers. Also, check to see if your volunteers are covered under your general liability policy. If not, you may need to research volunteer accident insurance.
- Auto Insurance – Even if your organization does not own a vehicle, if your staff or volunteers use any vehicles (including their own) for the organization’s benefit, consider hired/non-owned auto coverage. This covers staff if they are using their vehicle while running errands or performing other organizational business. It also provides protection when the organization rents a vehicle.
- Property Insurance – If your organization owns space or rents space, consider property coverage. What does this cover? The building, fixtures, equipment and machinery, office furniture, computers and related items, inventory and supplies. Remember, a burst pipe, storm, fire, hail damage, theft and more can drastically damage your organization and come at a great cost if you are not insured properly.
Of course, this is not an exhaustive list of potential insurance policies for a nonprofit. You may need product liability insurance, cyber liability insurance, employee dishonesty insurance among others. In summary, this is why it’s important to consult an agent you trust and insure your nonprofit.
Sandi Purinton is your local expert at The Insurance Connection. Offering the benefits of an independent agency, The Insurance Connection carefully considers your individual insurance needs and finds the right coverage for the best price for you, all with a smile. Contact us today at 678-439-8757 or firstname.lastname@example.org to get free insurance quotes.
This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusions. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. The Insurance Connection welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.