Insurance for Non Profit Organizations
Non profit organizations do a lot of great work for their communities, or the groups they are organized to help. While not technically thought of as a business, non profit organizations must operate in similar ways to a business in order to meet legal and regulatory requirements. Business insurance is just as important for non profit organizations because accidents can happen. And accidents or other hazardous events can put your organization in deep financial risk.
General liability insurance coverage is an all-around level of protection for your organization and the general public. This is a base level of coverage that helps prevent your organization from losing everything when accidents happen. General liability insurance is often required when you rent or lease your office space, so that the owner knows you are capable for paying for legal claims or damages if they arise.
General Liability Insurance Includes:
- Premises Liability – Premises liability is important when you have people going in and out of your office space. Whether you get drop in visits from the general public or you are frequented by non-profit organization contributors, where there are people going in and out there are potential risks for accidents. If someone is injured while they’re on your premises, or if something happens that causes damage to personal property, your premises liability insurance can take care of the medical costs or property repair bills.
- Products Liability – Products and advertising liability protects you from claims against either the products you sell, or problems with your advertising. If you sell products and they are found to be defective in ways that bring harm, this part of your general liability policy can pay for the medical care bills of the persons affected. If claims are brought against your advertising however, such as claims of slander or claims that you illegally used photos or text, this part of your business insurance will help pay litigation defense costs and settlement claims or damages.
- Completed Operations – Whether your non profit organization provides services for a fee or as part of a volunteer project, there are times when someone may claim that the operations you performed brought harm to them. The harm may be in the form of defamation or it may be related to bodily injuries or property damages. Completed operations coverage can pay for the legal defenses against these claims, or pay settlements and damages as applicable.
Business Owners Policy
A business owners policy (BOP) includes general liability insurance by default. It also allows you to select one or more types of other business insurance protection for your tangible or intangible non profit organization’s assets. Examples of the types of coverage you might select include:
- Buildings and Contents
- Business Income and Extra Expense
- Electronic Data
- Newly Acquired or Constructed Buildings
- Employee Dishonesty Coverage
A business auto insurance policy can protect your organization from suffering the financial hardships that might arise due to auto accidents. This insurance pays for physical injuries that people incur in an accident, and it pays for property damages as well.
If your non profit organization has paid employees, you are required by law to provide them with workers comp protection. This insurance will pay their medical bills if they are injured while performing their job duties.
A commercial umbrella policy provides your non profit organization with additional business insurance protection above and beyond the limits of your existing policies.