Non-profits have a unique exposure that is different from for-profit organizations. Most businesses pay their staff to perform specific duties, while many non-profits rely heavily on volunteers. Did you know that Workers’ Compensation insurance often does not provide coverage for workplace injuries to volunteers? At Engle & Associates Insurance Brokers, we have the solution to this and many other gaps in coverage that you may not realize even exist.
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Learn about common risks regarding your non-profit organization and discover how the proper insurance can help.
Directors and Officers Insurance
What happens if a board member invests the non-profit's assets unwisely and loses everything? A creditor might sue the non-profit as well as its directors and officers. Non-profit organizations are not immune to lawsuits. It’s possible someone may disagree with the way you run the organization and file suit. Often times, non-profits don't have deep pockets to fight these types of lawsuits, therefore putting the organization at risk.
Directors and officers liability insurance protects your directors, officers, trustees, employees, volunteers and the entity from any act or alleged act, error, omission, misstatement, misleading statement or breach of duty.
General Liability Insurance
Water on the floor, slippery entry in the winter, broken glass/hazardous debris, etc. These can all be accidents waiting to happen that make your non-profit susceptible. Claims may arise due to bodily injury, property damage, personal injury and more.
General liability insurance is an absolute necessity for any business. It provides broad coverage when you are deemed responsible and liable, and will also pay to defend any covered lawsuit or action regardless of its merit.
If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place.
Workers' compensation and employers liability insurance protects your employees should a job-related injury or sickness occur during the course of employment. Since benefits vary by state law, make sure your insurance agent is aware of all physical locations your business operates in and all physical locations where you hire your employees.
Commercial Property Insurance
When a fire, theft or another type of disaster strikes, your commercial property and everything within it can suffer a significant loss. This can have a detrimental effect on your organization.
Commercial property insurance can help protect the property your business owns and leases, including things like equipment, inventory, furniture and fixtures. Whether you own your building or lease your workspace, commercial property insurance can be purchased separately or can be combined with other necessary coverage to protect your business’ physical assets.
Employment Practices Liability Insurance (EPLI)
On average, it's estimated that three out of five businesses will be sued by their employees. Claims can stem from just about anything, such as someone taking a joke the wrong way and being offended. While there is nothing you can do to prevent someone from filing a lawsuit, there is something you can do to limit the costs of defending a legal claim.
The right coverage is critical to your risk management process as it protects against discrimination, wrongful termination, sexual harassment and other employment-related allegations.
Business Income Insurance
What would you do if an email virus impacted the operation of your database and prevented you from serving clients for a day or more? Or what if a hacker or cyber criminal caused a system outage or extended downtime – leaving your business inoperable? These and other events can destroy your ability to serve clients and bring in revenue, which can have a major long-term impact on the viability of your business.
Business income insurance compensates you for lost income if your company cannot operate as normal due to disaster-related damage that is covered under your commercial property insurance policy, such as a data breach or cyber attack. Business income insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
Lawsuits can happen to anyone – and the damages can be hefty whether you win or lose. Even if you’ve done nothing wrong, you’ll need to defend yourself. So regardless of whether a contract requires it, without professional liability coverage, you could be putting your business’ future at risk.
Similar to directors and officers liability insurance, professional liability coverage protects against liabilities resulting from mismanagement of the organization, as well as workplace-related claims such as discrimination or sexual harassment. It covers not only directors and officers but also staff, volunteers and the nonprofit organization itself.
Sample list of coverage that we offer to non-profits:
Management Liability for Non-Profits
Non-Profit Directors and Officers Liability
Non-Profit Cyber Liability
Non-Profit Fiduciary Liability
Non-Profit Employment Practices Liability
Sexual Abuse Liability
Auto Coverage – including hired/non-owned auto
Accident coverage for volunteers and participants
Host liquor liability
Crime coverage – including employee dishonesty, with a broad definition of “employee”
Foster Parent Professional Liability