How Does Non Profit Liability Insurance Work?

How Does Non Profit Liability Insurance Work

Think you can get away without liability insurance? Think again. Liability insurance helps to stand your nonprofit in good stead.

The process of finding insurance is overwhelming for many nonprofit directors. Most insurance agents don’t understand their unique needs and treat them as a business. Although nonprofits are similar to businesses in many ways, their risks and vulnerabilities differ dramatically. This is where liability insurance can step in to help your nonprofit.

Coverage Worth Investing In

Liability insurance is one of the many available protection solutions for nonprofits. In addition, it offers significant benefits in the event of a lawsuit.

Pays defense costs. We all know that attorneys don’t come cheap. Averaging $50 to $100 per hour, helping to defend yourself in a lawsuit will rack up some steep expenses. Since nonprofits operate a shoestring budget, these charges are not feasible. Insurance companies will pay the costs to defend your nonprofit during a lawsuit for a covered claim.

Access to experienced attorneys. You don’t have to search the Internet for a qualified attorney. Insurance companies have relationships with a variety of expert attorneys that can correctly approach the claim of the lawsuit.

Pays settlement costs. Settlement payouts can be hundreds of thousands of dollars, depending on the nature of the claim. Luckily, an insurance company will pay out settlement costs for covered claims.

Helps reputation management. No nonprofit wants to be associated with a sour lawsuit. Once a covered claim is filed, insurance companies and your appointed attorney will work with you to manage your reputation.

Implements policies and procedures at work. The top insurance companies can provide you with policies and procedures to implement on day one, thereby reducing the chance of a lawsuit in the first place.

How Does It Work?

Nonprofit liability insurance is purchased for a one-year term and then renewed on the expiration date the following year. It’s important that you keep in clear communication with your insurance agent, should an incident arise. If you file a claim, the insurer will assign you to a claim number, adjuster, and lawyer to communicate with.

Your nonprofit needs to be protected at all times from the risk of liability. Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298. We will work with you to ensure you are getting the most out of your coverage.