Commercial Insurance for Nonprofit Organizations
An unexpected lawsuit can have a budget conscious, nonprofit organization facing asset loss or worse, having to put up the dreaded sign that read “out of business” in your window. That’s why many nonprofits turn to commercial nonprofit business insurance to minimize financial expose due to company negligence. Mistakes will always happen no matter how careful and through your business is. Don’t take any chances.
At minimum, here are the three coverages no nonprofit should be conducting business without. You can add many more business coverages as your business grows.
General Liability insurance – This coverage can protect a nonprofit business from claims libel, slander and the classic slip and fall.
Example of a general liability claim – Let’s say while printing the bi-monthly Nonprofit Newsletter, an employee accidently writes in incorrect article about the CEO of a food shelf program. The CEO is livid, and embarrassed plus sues your nonprofit for libel. You’d be covered.
Professional liability (Errors & omissions) –This coverage can protect a nonprofit business from claims you were negligence in performing your professional duties as a nonprofit. As a result, someone or something was damaged or a person suffered physical, emotional or mental anguish, because of their dealings with your nonprofit.
Example of an errors & omissions claim – Let’s say your nonprofit is a Church, and has nightly family counseling sessions. During one of these sessions, a father from the sessions shows signs of aggression with a potential to hurt one of his children. Your employee is supposed to report this this type of behavior to the Church director but fails to for whatever reason. The next day, the child is at the hospital with a black eye. The mother sues the Church for negligence. This would fall under the omissions of the errors and omissions coverage. That part is for failure to do nothing.
Directors & officers insurance –This coverage can protect a director or officer of a nonprofit business from claims they mismanaged the nonprofit company with bad decisions and now the company is facing some type of financial hardship as a result.
Example of a directors & officers claim – Let’s say your nonprofit’s directors and officers have been told by their supervisors and managers numerous times the boiler rooms are unsafe and need to be replaced. After time goes by, there’s a fire in the boiler room that results in the accidental deaths of two employees. This would fall under directors and officers not keeping the people who work for them safe.
Note: All the above coverages pay for an attorney to defend you in court, pays for court and other legal fees and can pay out on settlements all the way up to the nonprofit policy’s limits of liability.
Don’t lose the funds to the programs the people in your community so badly need because you thought a tiny nonprofit, such as your company, didn’t need to carry insurance.
Quantum Insurance specializes in providing affordable, commercial insurance quotes for many industries such as, nonprofit businesses.
To receive several free quotes, call Quantum today at (855) 784-7864.