4 Key Insurance Coverages for Nonprofits

4 nonprofit coverages neededInsurance is a big subject full of words that nobody uses in their daily lives.  Insurance for Nonprofits can seem more complicated by the fact that insurance was originally created with for-profit businesses in mind, so it’s not always obvious how the various pieces fit together to create the specific programs needed by most organizations.  However, because it’s specialized we can simplify the process and the coverages needed.  Here we discuss the 5 key insurance coverages most nonprofit organizations should consider to be properly protected.  This is not a comprehensive list of all the insurance coverages available to nonprofits, it’s just a starting point.  

 

1) General Liability

General Liability insurance basically covers claims and lawsuits associated with injuries to people or damage to people's property that was caused by the negligence of your staff or volunteers.   This is why your organization needs this coverage:

  • To provide protection if something unexpected happens
  • To provide legal help if there is a lawsuit against you
  • To satisfy grantor requirements
  • To satisfy city, state or federal requirements
  • To cover gaps in the volunteer protection laws

 

2) Directors & Officers Liability

Directors & Officers Liability insurance basically covers claims and lawsuits associated with the consequences of the decisions made by your board of directors. This is why your organization needs this coverage:

To provide protection if someone has a grievance with how the board is running the organization, handling donations, or allocating resources

  • To provide protections for your individual board members for their service to you
  • To provide legal help if there is a lawsuit against you
  • To satisfy third party requirements
  • To cover gaps in the volunteer protection laws
  • To enable the purchase of Employment Related Practices Liability

 

3) Employment Related Practices Liability

Employment Related Practices Liability basically covers claims and lawsuits brought against your organization by employees and volunteers for harassments, wrongful termination, and discrimination.  This is why your organization needs this coverage:

  • To protect against the most common types of lawsuits
  • To provide legal help in the case of baseless accusations
  • To adequately protect all of your employees and volunteers
  • To access the insurance company resources for handbook help and advise

 

4) Volunteer Accident Insurance

Volunteer Accident Insurance basically covers excess medical costs associated with injuries to volunteers.  This is why your organizations needs this coverage:

  • To make your volunteers feel safe
  • To mitigate potential liability lawsuits
  • To encourage volunteerism

 

This is a starting point to help you simply the process of creating an effective insurance program for your nonprofit.  Depending on your operations and activities it is likely that you will need additional coverages to be properly covered.  Your best bet it to work with a nonprofit insurance specialist like SteelBridge you can help you discover the right coverages for your organization.

 

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