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Nonprofits often operate on tight budgets that require making informed decisions about every purchase. Having the right type of insurance protects nonprofits from financial strain that can occur during unforeseen events such as fires or theft. Exploring these types of insurance that are beneficial for nonprofits helps you make the best decisions for obtaining essential policies that offer financial protection for your organization.
Commercial General Liability
Your nonprofit organization faces many of the same risks general businesses do. For instance, a nonprofit thrift boutique could have a customer who experiences a slip-and-fall accident. Or your organization may provide services to others that result in property damage. General liability insurance can be included in a commercial insurance policy that protects your organization from costly personal injury or property damage claims.
Health Insurance
Depending on the size of your nonprofit, you may need to plan for employee health insurance coverage to comply with federal law. Smaller nonprofits may benefit from special insurance packages designed to meet the needs of organizations with fewer than 50 employees. When it comes to health insurance, it’s often best to ask an experienced agent to make sure you have the right types of coverage to meet any responsibilities your organization has toward its employees.
Directors and Officers Liability
When you research policies, you’ll sometimes see this listed as D&O insurance. This type protects your organization along with any directors, officers, volunteers, and other employees from costs that could arise from having to defend themselves against a wrongful act claim. Although you may know your organization’s Board of Directors and volunteers would never intentionally act outside of the best practices, they may still need protection from the risks they could face if someone tries to sue for such a claim. Depending on the type of nonprofit you’re insuring, carrying this type of insurance could also attract high-quality candidates to your organization.
Auto Insurance
Many nonprofits own and operate fleet vehicles that all need proper auto coverage to comply with the law and provide protection to drivers and others on the public streets. This type of coverage works similarly to other types of auto insurance. You’ll need to list specific drivers and ensure anyone who gets behind the wheel meets the policy’s specifications for being a certain age, having a good driving record, and possessing a qualified driver’s license. Even if your organization has one or two vehicles, auto insurance is necessary.
Cyber Liability Insurance
Many nonprofits maintain databases that could be the subjects of cybersecurity breaches. Cyber liability insurance covers the potential costs your organization could face from people filing claims regarding data breaches. You can also use this insurance to identify weaknesses in your organization’s cybersecurity plan or to cover legal costs for defenses against lawsuits. Since cybersecurity threats are relatively new, older nonprofits may need to explore adding this type of insurance to their existing plans.
Nonprofits need to make sure their organizations, employees, and volunteers are protected by purchasing appropriate insurance coverage. For affordable, reliable commercial insurance as well as homeowners, renters, motorcycle, and auto insurance, call on the trustworthy professionals at Altra Insurance Services. Reach out to us today to learn how we can satisfy all your insurance needs.