Considerations for Basic Insurance Coverage for Non-Profits

Finding a knowledgeable, reliable insurance agent or broker who is familiar with and has experience working with non-profit organizations is the first challenge for any non-profit looking to buy insurance. 

Compared to for-profit companies and government organizations, non-profits are distinct. They are best served by an insurance expert who is aware of these variations and has resources set aside to assist non-profit leaders in securing coverage that is suitable for their organization’s requirements.

The sections below detail the most important insurance policies you need to secure for your non-profit.

Liability 

Liability insurance, which defends the organization against accusations of negligence on the part of the non-profit or its staff, volunteers, or agents, is a major issue for charities. 

Negligence is when one fails to act in a way that a sensible individual would in the same circumstance.

Commercial General Liability

The commercial general liability policy is the type of liability insurance that NGOs most frequently obtain. Claims for bodily harm, property damage, personal injury, and advertising injury are all covered by CGL.

Business Auto

A corporate auto policy is an additional option to think about. You need a BAP to protect any vehicles your non-profit owns from auto liability and physical damage. 

You should buy hired and non-owned auto liability coverage if the non-profit doesn’t own any vehicles. If the non-profit doesn’t own any vehicles, you can frequently acquire this coverage as part of a package policy that also includes general commercial liability. 

This coverage safeguards the organization when a person is driving while representing an organization and is involved in an auto accident.

Directors and Officers Liability

A Directors and Officers Liability coverage is an additional liability policy to take into account. The D&O policy guards against wrongful conduct committed by the organization’s directors, officers, staff, and volunteers while it is being governed and managed. 

Depending on the coverage the company purchases, the actual people who are insured will vary. Allegations of duty breach, mistakes and omissions, and other actions injuring the organization or its stakeholders are called “wrongful acts.” 

Losses for physical harm or property damage are not covered by the D&O policy; instead, they are covered by the general liability policy or another liability policy.

Workers’ Compensation

Your non-profit will likely be required by law to carry workers’ compensation coverage if you have any full- or part-time employees. If you employ people, you should additionally confirm that your D&O policy covers Employment Practices Liability (EPLI). 

The majority of non-profit D&O insurance covers EPLI. The majority of D&O claims brought against non-profit organizations are employment-related.

Excess Liability Policy

This policy gives the organization additional coverage limits for a catastrophic liability loss. Over and beyond the general liability, business auto liability, and employers liability policies, the umbrella policy offers extra limits.

Although not required, an umbrella policy is something to consider based on your organization’s activities.

Property

A commercial property policy covers the non-profit’s property. You should take into account a computer or electronic data processing policy if your non-profit owns any computers or electronic devices. 

A computer policy provides broader protection for computer hardware, including loss from power surges, head drive breakdowns, and perhaps viruses.

Conclusion

Your business may be able to obtain a business owner’s policy or commercial package insurance that combines the general liability, property, and criminal coverages into a single policy. In most cases, these package plans are less expensive than buying separate policies. Your insurance consultant can help you with this.

This is merely a brief summary of some of the insurance options you should consider. Remind yourself that finding an insurance agent with experience working with organizations should be your first step.

If you need reliable non-profit insurance in Georgia, Church Insurance Man is your best option. We offer insurance plans for churches, including general liability and property coverage. Contact us for insurance services in Macon, Columbus, Gainesville, and Gwinnett areas.