Four Essential Insurance Coverages for Non-Profits

Ben Kraus

By: Ben Kraus

Non-Profits are a vital part of our community. They provide services and resources to the most underserved portions of our society. Anyone who’s ever worked at a non-profit will tell you that you must run the organization like a business in order to succeed.  Insurance is an important part of any business’s operation, including non-profits.

It’s important to know the different types of insurance coverage available for non-profits in order to figure out which will best protect your organization.

1. Commercial General Liability insurance is insurance that protects the organization from claims where the organization is alleged to have caused damage to a person or property. This is essential coverage for all organization. Examples of incidents that this coverage protects against are injuries that occur on your premises or damage to an office you rent.

2. Commercial auto insurance can also be vital for a non-profit. It’s obvious you need auto insurance if your non-profit owns a vehicle but it can be necessary even if you don’t own a vehicle. Hired and Non-Owned auto coverage means the organization has coverage for claims made against the organization as a result of an accident involving a vehicle the organization does not own or rents. This can include your employees and volunteers. A personal auto insurance policy may not cover you if you are driving for the organization.

3. Special events coverage is another coverage part that needs to be added on to most non-profits policies. Special events can play an important part in a non-profits fundraising goal. However the risks can be high at events especially if alcohol is made available. It’s important that any special event policy also includes liquor liability.

4. Directors and Officers coverage protects your board against legal judgments and related expenses resulting from allegations of wrongful acts committed in their individual capacity as directors and officers. Optional coverage can also be added to D&O coverage. The most important of these is employment practices liability insurance. This protects the board from any allegations in relation to decisions regarding employees, including claims of wrongful termination or discrimination.

I hope this was enlightening for anyone who manages or is involved with a non-profit and cleared up any confusion over the different insurance coverage’s available.

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