What Exactly Does a BOP Cover for Non-Profits?

Non-Profit organizations have big responsibilities; they are usually busy spreading a message, helping the community, hosting fundraising events, and more. With so much on their plates, making sure they have the right insurance coverage is not always front and center on their minds. However, without the right insurance a natural disaster or a lawsuit could easily devastate them. The good news is, a Business Owners Policy, or BOP, is an excellent solution. This is a package that combines the essential business insurance coverages your non-profit clients will need, allowing those non-profits to focus on what really matters to them; continuing their mission and enriching lives in their community. So what exactly does a BOP cover?

General liability is the most basic form of insurance grouped under a BOP. This policy covers third-party injuries on the non-profits’ premises and property damage caused by the non-profit or their clients. General liability also accounts for lawsuits over completed operations liability, contract liability and advertising/ personal injury liability.

Another portion of a BOP that is essential for non-profits is property insurance. If a fire, tornado, or burglary leaves your clients’ non-profit in need of new equipment and/or office front, the BOP gives them the funds they need to get their business back in working condition. For non-profits that rent office or building space, the property area of their BOP can fulfill certain lease requirements that call for an insurance policy of some sort.

Directors and Officers Insurance is another essential coverage under a BOP. D&O insurance is liability coverage that is payable to the directors and officers of a company, or to the non-profit organization itself as reimbursement for losses or advancement of defense costs in the event that the insured suffers a loss as a result of legal action brought against a director or officer. This can include claims of alleged wrongful acts, or actual wrongful acts.

The above mentioned policies are just a few of the coverages that non-profits are protected with under a BOP. At Charity First, we have written thousands of non-profits, social service and human service agencies, and understand the unique and complex risks that come with the incredible work these organizations do. Learn more about how we support non-profits and social service clients with a comprehensive insurance program by contacting us at (800) 352-2761.