While non-profit organizations have unique objectives, they do share some of the same challenges faced by businesses in the for-profit sector. One of these is the need for insurance to cover them in the event of negligence, mishaps, and damages suffered as a result of vandalism or natural disasters. Here we look at some of the non-profit insurance options that a not-for-profit organization should consider as part of a responsible strategy for long-term sustainability.
Non-Profit Insurance Options to Consider
General Liability Insurance
General liability insurance offers protection in the event of a claim against an organization, its employees, or its volunteers. A common reason for such claims is when a customer or supplier suffers personal or bodily injury while on the company’s premises. Liability insurance will cover damages in the event that the company is ordered to pay damages.
Companies may supplement this to cover medical expenses that result from “no-fault” bodily injuries, but it’s important to note that liability insurance does not apply to company employees, who are covered under the company’s workers’ compensation policy. There are also options to cover property damage or injuries resulting from advertising activities, such as slander, libel, and copyright infringement.
A property insurance policy covers the space an organization owns, in addition to office equipment, furniture, fixtures, machinery, and inventory. These can be damaged or lost as a result of vandalism, or natural disasters such as fires and earthquakes. One thing to consider with property insurance is exactly how they compensate in the event of a loss, as some policies only pay the used market value of the lost items as opposed to the cost to replace them.
Another consideration is whether there are any exceptional circumstances under which your company will not be covered. For example, some property insurance policies do not cover damages resulting from floods, which may be covered by separate flood insurance. Also, coverage for computer and data equipment sometimes requires a separate policy, so make sure to ask your insurance agent about this.
Business Auto Insurance
Auto insurance covers injuries to people or property that were caused by someone who was operating a vehicle as part of regular company activity. This applies not only to any vehicles the company owns but also to the personal vehicles owned by employees and volunteers who use them to conduct company business.
Depending on the state in which you operate, there may be a mandatory minimum amount of auto insurance required by law. In addition, there may also be requirements for personal injury protection (PIP) and uninsured or underinsured motorist coverage (UM/UIM). Be sure to check with your local insurance agent to verify what level of auto insurance coverage is required in your state.
These are some of the basic insurance options that any non-profit business should consider to feel they are operating in a responsible and sustainable fashion. Contact ISU-Armac Insurance Services to learn more about the best insurance policy options for your organization.