If you’re running a nonprofit organization, you need to think about protecting it against risk. Nonprofits usually operate on tight budgets, so even a single unexpected expense can have an impact. While every nonprofit has different needs, there are some basic policies that all nonprofits should consider getting.
General liability insurance is one of the most important policy nonprofits can buy. It protects against accident-related lawsuits that could cost the organization financially and reputationally. Auto insurance is another essential nonprofit policy. It covers vehicles rented or owned by the nonprofit, and sometimes by volunteers and staff. Whether you’re running errands or transporting clients, having this type of coverage can save your nonprofit from expensive claims and legal fees.
Property insurance is another important policy for nonprofits to have. It can cover the space your nonprofit occupies, as well as the furniture, computers and equipment inside it. This type of insurance can help your nonprofit replace these items if they’re stolen or destroyed by fire, storms, vandalism and other natural disasters. It’s also an option to add crime coverage, which can cover theft by staff and volunteers.
Director and officers insurance, also known as D&O, is a policy that protects members of the nonprofit board from claims of negligence or misconduct. This can include things like alleged sexual harassment, copyright infringement and more. Many D&O policies also include employment practices liability (EPLI) coverage, which can cover claims related to hiring and firing.
Worker’s compensation insurance is also a must for most nonprofits, as it covers employees who are injured or become ill while working for the nonprofit. This type of insurance is typically mandatory by law in some states. It’s a good idea to talk to an expert risk advisor about worker’s compensation insurance for your nonprofit.
Other policies that are worth considering are professional liability insurance and crime coverage. Professional liability insurance protects your nonprofit against claims of negligence in the services you provide, such as coaching, counseling and more. It’s similar to malpractice insurance for doctors. It can also cover things like alleged copyright infringement and personal injury.
In addition, your nonprofit should purchase crime insurance or a crime bond. This type of insurance is often required by foundations and government entities that award grants to your nonprofit. It’s an added reassurance that donors can trust that their money is safe with your nonprofit.
There are many other types of insurance that you may need for your nonprofit, but this article provides a start. A trusted and experienced independent insurance agent can help you evaluate your specific risks and needs, then find the right nonprofit insurance for you. They can also negotiate the best possible price and terms with insurers on your behalf. To get started, contact an advisor today. what type of insurance does a nonprofit organization need