As the risk landscape continues to expand and policy language becomes more restrictive, consider these five best practices as you develop a holistic risk management strategy. The policy may also include medical expense that provides a low limit (usually $5,000 or $10,000 per person) for “no-fault” bodily injury. This limit is useful because its use does not require a finding of negligent on the part of the nonprofit. Some insurers specialize in coverage for nonprofits and may be able to best meet the insurance needs of your organization.
Your organization may be able to purchase a business owners policy or commercial package policy that combines the general liability, property and crime coverages into one policy. These package policies are usually more economical than purchasing separate policies. A commercial property policy covers the property (furniture, fixtures, office equipment, stock, etc.) that the nonprofit owns. If your nonprofit owns any computers or electronic equipment, you should consider a computer or electronic data processing policy. A computer policy offers broader coverage for computer equipment such as loss due to power surges, head drive crashes, and possibly viruses.
Crime Coverage or Crime bonds are other areas of insurance coverage that are not well-known. No one wants to think about it, but by working with large amounts of people, nonprofits are in danger of unscrupulous individuals. In the case of nonprofits losing money to employee theft, crime coverage replaces the stolen funds and helps protect your organization from events like this happening in the first place. In 1997, the Volunteer Protection Actpassed to protect volunteers against allegations of harm if they didn’t receive any funds beyond a refund for what they may have paid themselves. The Volunteer Protection Act does not always cover mismanagement cases and will not cover the defense cost for those being sued. D&O insurance protects the personal assets of corporate directors, officers, their spouses, and the nonprofit as a whole in the event of being sued.
Negligence is failing to do what an ordinarily prudent person would do under the circumstances or doing something an ordinarily prudent person would not do under the circumstances. The Hartford was founded in 1910 and has served over one million small businesses to date. They’ve been listed as one of the “World’s Most Ethical Companies” 12 times and strive to incorporate sustainability practices, trust, and integrity in each policy they provide through this link greekaid.org
It covers damage or loss to buildings, office equipment, inventory, and any other property the nonprofit owns. Boards should be aware that not all insurance policies cover floods and earthquakes. Professional Liability Insurance is also called “errors and omissions” or “malpractice” insurance. Malpractice insurance may bring up visions of doctors or lawyers, but this insurance can be just as useful for nonprofits. There are times when nonprofit directors, officers, staff, or volunteers may behave or are accused of inappropriate behavior. Professional Liability Insurance protects directors, board members, staff, volunteers, and the nonprofit organization itself in these cases.
CoverWallet customers can secure general liability insurance for as little as $39 a month through the BASIC plan, or they can choose to extend coverage by selecting one of the other three policy plan options. The STANDARD insurance plan starts at $149 a month and includes general liability and director’s and officer’s insurance. The PRO plan starts at $209 a month and includes general liability, D&O, and commercial property insurance. Nonprofits that need a more tailored plan can also customize their coverage to include additional policies, like commercial property and hired & non-owned auto liability. Employment practices liability insurance protects your nonprofit from claims where employees alleged your nonprofit is responsible for violating their legal rights as employees. Some insurance providers allow you to add this coverage onto your D&O insurance policy at a slightly higher premium.
Product liability insurance is crucial if your organization sells any products. Regardless of the product’s size and cost, this nonprofit insurance protects you against lawsuits by customers claiming injury by your product. Product liability insurance also coversthe legal defense and a large portion of the damages in case you are found at fault. GuideOne has been guiding community organizations through the intricacies of insurance since 1947. They work specifically with churches, nonprofits, educational organizations, and small businesses to offer peril protection, including property coverage. In addition to insurance policies, NIA also provides members with additional resources and tools, including a free risk management service and loss control consultations.