It is important that nonprofits do a thorough evaluation of their insurance needs, because precious funds can be lost if they become the target of a liability claim or lawsuit.
The list below includes some of the coverÂages most nonprofits need and may help you if you are asked to sit on a board of directors or participate in an organization you admire.
General liability insurance — Insurance for claims of bodily injury or property damage caused by someone working on behalf of the nonprofit
Property insurance — Covers equipment, furniture, etc. This type of policy may also apply to leased real or personal property whose contract includes insurance requirements.
Auto insurance — Covers owned and/or non-owned vehicles for accidents caused while in use by the organization.
Directors and officers insurance — Covers boards of directors and/or officers who make decisions on behalf of the organization. This insurance is designed to respond to claims resulting from adverse financial consequences from such decisions.
Cyber risk/data breach insurance — NonÂprofits that hold or transmit client or personal data should consider the risk of mismanaging that data and the potential cost involved.
Don’t get caught unprotected. This list is not comprehensive, and your needs could include abuse, molestation, workplace violence or other crucial coverages. Serious consequences can result from accusations, accidents, omissions and attacks, so budget quality insurance into your nonprofit’s financial plan.
