While nonprofit organizations do not operate as traditional businesses, there are still certain aspects that remain the same, such as needing insurance coverage. For nonprofits, a CPP insurance policy or other package policy is typically one of the best coverage options, as we discussed in our previous blog. All in all, you’re going to want liability insurance and property insurance lumped into one: it’s cheaper and far more effective to keep track of for an organization with a limited budget.
What kind of coverages should one consider for their nonprofit? It’s imperative to get the proper coverage that will help a nonprofit fulfill their vision, advises The Balance. Every nonprofit is different, which is why talking to a professional will help speed up this process. An experienced insurance broker will know exactly what to look for as far as coverage options go. Make sure you understand what your nonprofit needs and doesn’t need, but these are some of the most important coverages for every organization.
Directors and Officers/Employment Practices Liability Insurance
The coverage nonprofits ask for first is D&O coverage. It protects the leadership in the event of a lawsuit. More than anything, this type of coverage (paired with EPL coverage) acts like a management liability coverage, which will provide protection for your nonprofit organization’s leadership against claims from both third-parties and your own volunteers.
General Liability coverage will protect you in the event that third-party visitors to your operations are injured on your premises or receive damage to their own personal property. In addition, CGL insurance also protects against allegations of libel or slander. Within our program, we conduct a top-to-bottom assessment of each operation’s individual risk profile in order to create a coverage program that fully addresses their exposures.
CGL coverage will protect you against claims of injury from third parties, but workers’ compensation is key to cover employees or volunteers who’ve been injured on the job. You can’t go without this coverage. It protects your employees and volunteer workforce from accidents. Workers’ comp laws vary by state, so make sure that you are aware of your jurisdiction’s requirements.
While many small nonprofits don’t have much in terms of property, this type of insurance can be critical in some cases. Property related claims happen: burst pipes, windstorm, hail, fire, theft and vandalism. Property insurance makes sure you’re protected from all of them.
This comes in handy even if you aren’t a transportation-based business with a company fleet. If your employees use their own vehicles for any type of work-related purpose, your organization could be liable for any accident-related claims. Consider getting hired/non-owned coverage as well.
Crime & Employee Dishonesty Coverage
This policy covers if an employee siphons nonprofit funds. Many municipal contracts or foundation grants require this kind of coverage. This coverage helps replace the funds, but you should also have risk management policies in place to help prevent a situation from happening.
About David G. Sayles Insurance Services
At David G. Sayles Insurance Services, we strive to protect the investments of homeowners like you. Our comprehensive policies are customized for you to provide the exact coverage you need. For more information, contact us today at (800) 439-0292.