When Should You Insure Your Nonprofit?

When to Get Insurance for a Nonprofit Organization

You’ve worked hard – really hard – to establish your nonprofit. You’ve set it up with the best intention and cannot wait until it becomes a successful operation. You may have that common nagging feeling that you’re not doing enough to protect your hard work. If you’re not insured, you’re leaving your nonprofit severely exposed. Given that most nonprofits operate on a tight budget, consult an insurance professional who specialized in nonprofits to be sure you have the right coverage for your organization.

Below are some of the insurance coverage and policies you may want to consider for your nonprofit.

Directors and Officers (D&O) coverage: This coverage protects your board of directions and officers since their service to your organization puts them at a liability. The best way to protect them is through a D&O policy.

General Liability: Although it’s commonly known as a ‘slip and fall’ policy, this policy does much more in the means of protecting your nonprofit. It covers bodily injury, damage to someone else’s property after an accident you cause, defense of personal and advertising injury claim. Many organizations require a general liability policy if they want to host a special event or work in partnership with another organization.

Professional Liability: Some insurance carriers include or pack professional liability into their general liability package. If yours does not, be sure that you have the right coverage for any mentoring, counseling, medical work, and any other professional services your organization may offer.

Workers’ Compensation: This coverage protects your biggest asset – your employees. This coverage pays for medical expenses, disability, and death benefits for injured workers. You may want to ask your insurer about this coverage if you have interns and volunteers.

Property Insurance: If your organization owns space or rents space, consider property coverage. This coverage protects the building, fixtures, equipment, machinery, office furniture, computers, inventory, and supplies. A burst pipe, fire, hail damage, and theft can dramatically damage your organization and come at a great cost if you are not insured properly.

Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298. Make sure that your nonprofit is properly covered. We will work with you to ensure you are getting the most out of your coverage.