Nonprofit organizations tend to have small operating budgets, requiring administrative teams to maximize every dollar spent. Large, unexpected expenses can quickly drain any financial reserves and cause the organization to fail. The right insurance policy can help guard against the more common risks and exposures, but with so many options to choose from, it can hard to determine where to spend the funds. Here are some crucial needs for non-profit insurance.
1. General Liability
There is the potential for many accidents on your organization’s property, and general liability addresses slip-and-fall situations. Any damages incurred or ordered to be pay to victims of an incident (such as a vendor, associate, supplier, visitor, etc.) are covered through the policy. This isn’t going to address employees, as this is what workers’ comp insurance is for. It would step in for volunteers.
2. Property Insurance
Whether you rent a space or own a property, incidents like earthquakes, fires, vandalism, storms, or else could cause serious damage to your structure and property contained within. Basic property coverage will repair or replace owned property, from the building to fixtured, equipment, or inventory.
3. Auto Insurance
Any owned, hired, or employee/volunteer vehicles should be covered under an auto insurance plan. Your state of operations will generally have a minimum required coverage amount, as these policies pay for injuries, death, and property damage for involved parties.
Speak with an agent about other forms of insurance that will protect your nonprofit. The right policy is crucial to your success.