Membership Organization Insurance
Membership organizations come in all shapes and sizes, from professional clubs that connect people in the same industry to groups that unite people with the same hobby, political beliefs, or location. One detail such groups have in common is that they are made up of members who often have to meet certain conditions and possibly pay a membership fee to join. Another detail they have in common is that they can benefit from business insurance. Here’s what membership organization insurance covers.
Membership Organizations Need The Following Insurance
Business Liability Insurance (GL): If the members of your organization gather in a particular place for meetings, you need general liability insurance. This is the portion of your membership organization insurance policy that will cover the costs of medical care if your members or any other visitors get hurt on the premises. General liability is also a necessity when someone’s personal property gets broken or lost at your place of business. So if a member of your organization runs over glass in your parking lot, your general liability policy could be responsible for replacing the tires on the car.
Business Personal Property Insurance: You need to keep the building where your group meets in great working order. If you don’t have the money to pay for repairs quickly after the building is vandalized or burned down, you need BPP when you get membership organization insurance. This allows you and your group members to feel confident that you’ll still have a place to meet even if the building is ever damaged.
Workers Comp Protection: If your organization has any employees, you need to protect them with workers compensation. When this is part of your membership organization insurance policy, you can relax and be sure that your employees’ medical costs will be paid if they are ever hurt while working for you. Their missed income will likely be covered by workers comp, too.
Umbrella/Excess Liability: You already know why you need general liability, so you should be able to see the value of excess liability, too. Basically, it increases the coverage you get on general liability, giving you more compensation to work with when there’s an accident of any kind on your business property.
D&O: Your membership organization insurance policy also needs D & O, which refers to directors’ and officers’ liability insurance. In general, this coverage pays for the legal defense of directors and officers of organizations if they are ever accused of wrongdoing and need to undergo investigation.
Professional Liability (E&O): When you provide a service of any kind, there’s a chance mistakes will be made. No matter what kind of organization you lead, it’s good to get E & O along with your membership organization insurance policy. This will cover your group if anyone gets injured or ends up with damaged property due to any services you or your members provide. And if a lawsuit arises out of the mistake, E & O can cover your legal defense costs so you do not have to pay for them out of pocket.