Like other businesses, nonprofit organizations require insurance too. Do you know what type of non profit insurance to look for? To understand the type of coverage you need, you first need to understand the risks involved with a nonprofit organization. Here is what you need to know about nonprofit insurance.
Types of Risk Exposures
Even nonprofit organizations have their share of risks. Common risks include property damage, bodily injury and the risk of personal injury lawsuits. If someone suffers an injury on your property or through using your products, you are liable.
Your company is also liable if a director or officer in the company has allegations of wrongful acts. This could be allegations of wrongful termination, failure to promote, libel and other accusations. Also, you are liable if any of your volunteers create a crime. For instance, if a volunteer steals or embezzles from the organization, you are responsible.
Types of Insurance Coverage
Fortunately, there are insurance policies that can provide coverage for the risks that non-profit organizations face. The types of insurance you should consider include:
- Volunteer Dishonesty Coverage
- Directors & Officers Liability Coverage
- Volunteer Liability & Injuries Coverage
- General Liability Insurance
An organization’s specific policies and plans will depend on the type of organization.
All companies have risks and require insurance coverage to handle said risks. Nonprofit organizations are no different.