Understanding the Basics of Non-profit Insurance
Many Nonprofit directors, administrators, and staff often mistakenly believe that they don’t need certain insurance coverages because they don’t have a meaningful exposure to liability. The fact is, that your non-profit clients have to meet the same legal standards of conduct that those applicable to their for-profit counterparts. What’s more is that given the tight budget that many non-profits operate on, even the smallest and unexpected natural disaster or lawsuit could lead to financial ruin.
This is where Non-profit Insurance comes in; getting the right type of coverage to guard against any potential risks is a very smart move for your non-profit clients. Perhaps the most important non-profit insurance coverage is general liability. A general liability policy insures your nonprofit client’s organization against personal injury claims made by a visitor, customer, supplier, associate, etc. This would not apply to employees however, as they would be covered by a separate Non-profit Workers Compensation policy.
In addition to general liability insurance and workers comp coverage, your non-profit clients will want to protect their property as well as any commercial automobiles they have. Property insurance includes their buildings and any personal property they use for their business, while commercial auto insurance will protect them financially if an employee is involved in a collision while driving a business-owned car or even their own vehicle to conduct business for the non-profit.
Other non-profit insurance program enhancements that your clients should consider are policies such as umbrella insurance, accident/health insurance, employee liability, and executive liability, also known as Directors and Officers insurance. Directors and Officers (D&O) is protection against a breach of duty by a director or officer.
Understanding the basics of non-profit insurance policies is essential for your clients, as well as for you. At Charity First, we are committed to helping you place coverage for your nonprofit clients. Our mission is to provide coverages tailored to meet the unique needs of this market segment. Please contact us today to learn more at (800) 352-2761.