Written by Tana Fye and Sheri Crosier
There are many types of insurance that would be beneficial for nonprofit organizations. Here we will list a few that you may want to consider. And these will give you a place to start in your conversation with your insurance agent, as he/she can talk with you about what kinds of insurance you particularly need, what kinds of deductibles and limits would best suit your needs.
Directors and Officers/Employment Practices Liability Insurance – This may sound like the intent is to cover and protect leadership in any and all lawsuits, however that is not the case. Director and Officers/Employment Practices Liability Insurance is more a management liability coverage. It is important to note what “wrongful acts” and exclusions your policy includes. General Liability Insurance – General Liability insurance often includes three types of coverage in a package: General Liability, Professional Liability, and Abuse and Molestation Liability.
General Liability Coverage – This is intended to cover bodily injury, as well as property damage claims. It can also include coverage on personal and advertising injury claims, such as copyright infringement. Professional Liability covers for services that are considered professional. This can include things such as mentoring, educational and life skills.
Abuse and Molestation Liability – This provides settlement funds for lawsuits for abuse and molestation incidents. This covers accusations from a client to an employee, volunteer, or contractor. Typically, this coverage is best for those serving youth, the elderly, developmentally disable, and disadvantaged populations.
Accident Insurance – Also known as Workers’ Compensation, this type of insurance will pay medical expenses, disability, and death benefits for injured workers.
Volunteer Injury Insurance can cover minor injuries to volunteers. In some cases, this can be covered in General Liability Insurance, but it is important to check your policy exclusions on this one.
Property Insurance – This one may seem like a minor need; however, it is important to remember things such as burst pipes in your office space, fire, hail damage, theft and more. When it comes to a space that is vital for the operation of your nonprofit, any of these incidents could mean major setbacks in your operation.
Auto Insurance – This type of insurance provides coverage against auto accidents. As well, consider non-owned liability coverage. This protects an organization when someone is driving the vehicle for activities related to the nonprofit. For example, running errands, transportation, etc.
Employee Dishonesty Insurance – In short, this type of insurance is used to replace funds stolen by an employee. Typically, if an employee is stealing money from a company, it goes unnoticed for a long period of time before discovered. Not only does Employee Dishonesty Insurance help to recover the lost funds, but risk management policies that are often times required with such coverage prevent the event from happening in the first place.
Cyber Liability Insurance – This type of coverage is important in the event of a data breach. Information such as donor and employee data, client data, and more can be stolen in the event of a data breech. This covers smaller things like the theft of a laptop with confidential information on it.