What Liability Coverage is Best for Nonprofits?
Your nonprofit organization faces many of the same liability risks as other companies, even if your staff is only comprised of volunteers. Since nonprofits operate differently than traditional companies, however, your insurance needs aren’t quite the same.
Liability Insurance for Nonprofits
The nonprofit liability insurance you choose should encompass three separate areas, including:
- General or professional liability – This insurance protects against claims from vendors, contractors, and other visitors regarding injuries sustained on your premises or property damage caused by one of your employees.
- Directors and officers coverage – If your organization employs either volunteer or paid directors, officers, or board members, these professionals can be sued for mismanagement or mistakes in the decisions they have made. Common claims involve such things as discrimination or wrongful termination. Lawsuits may also be filed against claims of invasion of privacy, copyright infringement, and libel or slander.
- Volunteer liability – Consider a separate policy to cover volunteers who are injured on-site. State laws vary on the requirements of workers’ compensation, so be sure to discuss the rules with your insurance agent to ensure proper coverage for volunteers.
No two nonprofits are exactly the same, so it’s critical to discuss your unique needs with your agent to ensure you find the right coverage to protect your nonprofit organization.