Weighing Insurance Options in a Nonprofit Environment
Nonprofit organizations are an increasingly important component of the social safety net. However, they face several challenges, such as protecting their assets without overburdening already stretched budgets. When weighing nonprofit liability insurance options, it can be helpful to break coverage types into those that are absolutely necessary and the ones that supplement them.
Types of Coverage Nonprofits Must Have
Whether required by law or as a basic minimum amount of coverage to protect the organization’s operations, certain types of insurance are an absolute must for nonprofits. These include:
- Business liability: This covers the company in the case a claim is made against it. This will usually result from an accident or injury, but can also be related to services provided by staff or volunteers and cases of libel or slander.
- Workers compensation: When an employee is injured while performing their job, workers comp pay s for medical expenses and lost wages.
- Auto liability: At the minimum, company vehicles should have liability coverage. Additional coverage for volunteers that drive personal vehicles may also be needed.
Extra Insurance That Fills the Gaps
There are also some policies that help fill in gaps in coverage. They may not be required by law, but are nice choices if your budget allows them. A few of the most common include coverages for employment practices, cyber breaches, and crimes committed by staff or volunteers.
The right insurance coverages can help protect your assets and operations. This way, if claims are made against the organization, it can weather them without sacrificing its ability to offer services.