Though nonprofit organizations have some key distinctions from other businesses, they still face many of the same common hazards on a daily basis. Nonprofits aren’t immune to risks like theft, cybercrime, or even lawsuits, so it’s critical for them to be equipped with the proper coverage. Fortunately here at First Underwriters, we can help you find the right nonprofit insurance to protect your organization.
Nonprofit organizations are mostly like any other organizations, with one major difference: They don’t turn a profit. This type of organization has been granted tax-exempt status by the IRS, which requires them to have a unique form of coverage. The following are common examples of nonprofit organizations that require special coverage:
Insurance exists for the purpose of protecting persons and organizations from the adverse financial consequences of certain unpredictable events, regardless of the coverage line being considered. For general liability insurance, the unpredictable event that constitutes the subject of the insurance is a claim of legal liability arising out of a company’s operations, premises, products, and completed work.
The Commercial Auto policy will pay “sums” for which the insured is legally liable because of bodily injury or property damage to which the insurance applies. Therefore, while covered bodily injury or property damage is required to trigger coverage, recovery under the policy can actually go beyond these types of damages.
Auto Physical Damage is coverage for damage to autos owned by the insured, and it’s completely optional (unless required by a lender). Physical damage coverage is divided into loss caused by collision, and loss caused by something other than collision. (The latter category is frequently referred to as comprehensive coverage, but in reality, “comprehensive coverage” is one of two types of coverage for loss caused by “other than collision.”) These are separate coverages, with different rates, and at the insured’s option, different deductibles. They can be purchased separately or in combination.
Commercial property is the policy that an organization purchases to pay for damage to its own buildings and the personal property in them. A commercial property policy can also cover loss of income or increase in expenses that result from insured damage to buildings and their contents.
If your nonprofit’s computer system is compromised, sensitive or personal data may be stolen and even sold to third parties. Aside from having to pay to clean up your network’s security, your organization could also face a lawsuit. This coverage protects against financial and legal ramifications following a cyberattack.
This coverage protects against costs associated with third-party injuries and property damage sustained on your organization’s premises, or in other words, in or around your office. Common injuries include slips and falls.
Also known as “errors & omissions insurance,” this coverage protects against claims made by customers or clients who suffer financial loss due to the work they’ve hired you for. This coverage is absolutely crucial for nonprofits that provide any kind of counseling services.
Covers legal fees in the event your nonprofit’s employees are involved in harassment cases against coworkers or the public.
Covers instances of employee theft from the organization.
If your employees become ill, get injured, or die from a work-related incident, this aspect of the insurance will cover the financial ramifications. Coverage is mandatory in most states.
Protects against potential mishaps related to events sponsored by the organization, including having to unexpectedly cancel an event on short notice, or causing property damage to the event site.