Most special events and fundraisers do not take place in a nonprofit’s primary location. Depending on the event’s size, locations can range from donor’s homes to municipal buildings to larger hotels and event venues. Insurance is needed to cover these locations and any individuals who work and attend the events. Unlike for-profit organizations, the goal is not to enrich the leadership but to further the nonprofit’s mission and vision.
Depending on your nonprofit’s location, states, municipalities, and even foundations require different types of insurance. Besides the obvious choices like general liability and health insurance, a nonprofit may need insurance coverage for events, volunteer activities, malpractice, and products. Though many insurance providers offer plans that can accommodate nonprofit organizations, few offer the specialized attention that many nonprofit organizations need when selecting coverage refer to this site greekaid.org
These resources help businesses minimize liability risks by providing training, education, and other types of support. Cyber Liability- Hackers are more likely to attack small nonprofits that lack high-security measures. Your nonprofit could have a cyber liability exposure if you collect personal or confidential data of any kind. Your employees or volunteers could also release confidential or personally identifiable information accidentally or intentionally. Cyber liability insurance pays for expenses your nonprofit incurs in the event of a data breach. Property Insurance- Property insurance is pretty self-explanatory.
Following is a shortlist of some of the more common types of policies about which nonprofit organizations should ask their insurance agents. They may need fewer policies and they may need different policies to cover different types of losses. With local underwriting and claim services Travelers understands the unique risks and needs of nonprofit organizations and the importance of protecting your mission. Organizations with more than 50 full-time employees are penalized by the Affordable Care Act if they do not provide health insurance options.
Leadership for these groups is expected to fulfill that vision through any means possible. Your organization also depends on committed and passionate professionals to propel and execute your mission. When competing against for-profit employers – especially in today’s tough labor market — a proactive response to changing workforce needs is an absolute must. Without expert guidance, you may not be fully prepared for current or emerging risks.
It protects against claims made as a result of a board director’s action or inaction. Coverage liabilities that come from the organizations’ mission, staffing, and a heavy reliance on volunteers can make the process daunting. According to Massnonprofit.org, D&O protects against any actual or alleged act or omission, error, misstatement, misleading statement, neglect, or breach of duty by an insured person. It also covers personnel issues, including discrimination, wrongful termination, harassment, failure to provide services, and mismanaging assets. To rebuild after such a catastrophic event, nonprofits need insurance policies to cover the cost of replacing items like fixtures, equipment and machinery, office furniture, computers, and inventory and supplies.
Goodwill and Habitat for Humanity Restore are two of the better-known examples of this, but with the growth of e-commerce, more nonprofits are looking into this revenue source. Directors and Officers (D&O) Insurance is another form of protection for nonprofit leadership. It is generally assumed to be needed by larger corporations but is just as crucial for nonprofits. In these cases, non-owned auto insuranceis critical to make sure all loopholes are closed. In case of disasters that damage the equipment and accessories a nonprofit relies on; it is vital to find a policy that does not just pay market value.
Failing to get the right insurance policies with the right coverage limits and deductibles places board members unnecessarily at risk. Another liability policy to consider is an umbrella or excess liability policy. This policy provides the organization with additional policy limits for a catastrophic liability loss. The umbrella policy provides additional limits over the general liability, business auto liability, and employers liability policies. An umbrella policy isn’t mandatory but something to consider depending upon the type of activities your nonprofit offers. The umbrella policy doesn’t provide excess limits for the D&O policy.
GuideOne does offer some online support via email with some claims like workers’ compensation managed online, but GuideOne’s online options are limited. The absence of online support may not be ideal for organizational leaders who prefer to manage all their insurance needs online. CoverWallet, founded in 2016, leverages the risk management experience of its parent company, Aon, to create affordable policies that are easy to customize and bundle. Its efficient, online approach to nonprofit insurance removes excess costs, making CoverWallet the best value on the market.