5 Best Types Of Nonprofit Liability Insurance Coverage

A liability insurance is an essential requirement for all kinds of organizations. Your nonprofit may be successfully running on values of social service. However, there is no guarantee that it would not run into risks such as bodily or property damage to a third party by a volunteer. Having a liability insurance for all kinds of risks you may be liable for is a wise decision. To avoid financial downfall, hire an experienced insurance agent who would suggest you individual or several liability insurances for your nonprofit. As an owner of a nonprofit organization, the following list helps you parse through some important nonprofit liability insurances you must have.

Cover Your General Liability

Depending on the nature of services you provide, having a general liability insurance can prove to be a be-all and end-all of your organization. If you run a nonprofit that looks after at-risk youth, specially-abled individuals, etc. you must have at least a general liability insurance. The insurance is a protection against claims of property, bodily, or copyright infringement damages. A client may accuse one of your volunteers for abuse or molestation. Whether you own a lifestyle business nonprofit or a health-based one, you need to prepare for this. Someone could get badly hurt on your property. In any of these scenarios, having a general liability insurance provides a viable means of solution. In fact, if you want to get into partnerships or organize a special function based on services you provide, most often you will be asked to give a proof of possessing a general liability insurance.

Get Your Vehicles Insured

Some states in the U.S. make a minimum auto insurance coverage mandatory. If you own a vehicle which either you or your employees use for nonprofit work, getting an auto insurance secures against a number of liabilities. The coverage includes protection against claims of physical injuries to either the body or property of a third party. The insurance also covers damages to your own vehicle. Auto insurance is one of the most popular insurances for all kinds of businesses. Depending on how often you need to perform tasks that require travel, ask your agent to suggest a suitable auto insurance policy.

Secure Your Workplace

To run a successful business, you need a space for all your equipment and a calm environment for your volunteers to work. Usually with nonprofits, the space owned or rented may be small. Nonetheless, you need to secure it with property insurance. Many owners who conduct reputation monitoring see improvements when they obtain this coverage. You can prepare for the worst and protect volunteers with this policy. Depending on where you are situated, you may need additional coverage against flooding or other natural calamities. The property insurance ensures you are protected against fire, pipe-bursting, or any other untoward happening at your work place. After all, such operational concerns should not get in your way of running a healthy and socially helpful nonprofit organization.

Compensate Your Workers for Any Injuries

Volunteers are cog in the wheels of a nonprofit organization. They dedicate their time and services to your cause. It is essential to protect them through a worker’s compensation policy. In case of mild or severe injuries to their bodies, Worker’s Compensation insurance provides them with medical or disability cost coverage. Most states across the country have a mandatory stipulation for nonprofits to have a worker’s compensation insurance. The benefits included within this coverage vary by states and organization. Check with your insurance agent for your special case.

Address Your Financial Safety

Although you may be working with nothing but sound interest and a dedication to community services, those around you may not have the same values. In order to protect yourself from an employee or volunteer’s dishonesty, get a Crime policy. This is sometimes also referred to as the Employee Dishonesty Policy. It provides coverage in case of theft or intentional damage to your organization by a volunteer. You do not need an accounting degree to protect your organization’s finances. The insurance helps you recover almost all you have lost through someone else being disingenuous.

Nonprofit organizations add to social value by the incredible services they provide. If you are running one of these businesses, it is crucial to safeguard yourself against any possible threat to your organizational well-being. Secure a General Liability insurance to protect against any property or bodily damage claims. Getting Auto and Property insurances will help secure damages to either your or a third party’s vehicles and property. Addressing the safety of your volunteers through Worker’s Compensation policy creates an environment of trust at work. On the other hand, it is wise to have a policy in place to prepare for an employee’s dishonesty through a Crime Policy.

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