A responsible nonprofit organization must have nonprofit liability insurance policies designed to safeguard the operation’s critical aspects, including the organization itself and its volunteer workforce.
Managers of nonprofits deal with modest budgets requiring prioritization of insurance purchases. Choices for nonprofit liability insurance involve two primary policy programs: essential coverage and desirable coverage.
1. Essential Insurance
Required insurance policies include:
- Directors and Officers (D&O) Liability Insurance: Upper-level management may be sued for wrongful acts or mismanagement. D&O insurance helps retain top talent by offering shelter from loss of personal assets.
- General Liability Insurance:General liability secures the organization and its employees for bodily injury, property damage and personal injury claims.
- Auto Liability Insurance: Volunteers may use vehicles on assignments, presenting a risk for your organization.
- Workers’ Compensation Insurance: This insurance covers job-related injuries to employees and may be available for volunteers. A customized volunteer accident policy offers additional coverage.
2. Desirable Insurance
Other policies may be beneficial:
- Property Insurance: Property protection covers office equipment that is damaged or destroyed, including furniture and computers.
- Crime Coverage: Theft insurance protects the assets of clients and losses on or off the premises.
- Cyber Liability: Cyber insurance shields against expenses incurred by a breach of personal information data.
- Employment Liability: Employment insurance guards against claims of failure to hire, wrongful termination and discrimination.
Volunteer-based nonprofit groups provide valuable services to our communities. An experienced insurance team understands and specializes in nonprofit organizations. A professionally designed policy protects your organization with nonprofit liability insurance and volunteer risk exposure management services.