Why Do Charitable Institutions Need Nonprofit Insurance?
Running a charity is an ambitious and admirable venture, as you can play a pivotal role in making your community a better place. However, despite your good intentions, you may still face hardship from a variety of sources. Accidents, professional errors, criminal acts and natural disasters can all strike without warning, and given your status as a nonprofit organization, you may lack significant financial resources on which to fall back. Fortunately, understanding and retaining the right nonprofit insurance can help.
What Is Nonprofit Insurance?
Nonprofit insurance is not typically sold as a named product. Instead, your charity may want to work with a qualified agent to assemble a portfolio of separate policies. Together, the various financial protections included in your nonprofit insurance package can ensure your organization is able to stay its course and recover from unexpected hardships.
What Types of Insurance Do Charities Need?
Given the vast array of missions and circumstances that may exist within charities in the nonprofit sector, it should be no surprise that there is not a one-size-fits-all solution for all organizations. Rather, your charity should conduct a comprehensive analysis of relevant risks and exposures and ensure its coverage portfolio is structured accordingly. In many cases, the following types of policies may be needed:
- General liability insurance—This can assist with losses arising from third-party bodily injuries, property damage and personal and advertising injuries for which your charity is to blame.
- Commercial property insurance—These policies can help your charity recoup losses involving its buildings, equipment, furniture, inventory and other physical property.
- Business interruption insurance—If your charity needs to shut down temporarily due to a covered incident, this coverage can compensate you for financial repercussions.
- Workers’ compensation insurance—Your organization’s employees may suffer injuries or become ill on the job, but this type of insurance can help charities and staff manage monetary losses.
- Directors and officers liability insurance—This type of insurance can financially protect your charity and its board members from losses and lawsuits arising from allegations of mismanagement or other alleged failures in leadership.
- Commercial auto insurance—If your charity uses motor vehicles to conduct its operations, this coverage is essential to ensure you can recover from the financial consequences of accidents and other losses.
- Cyber liability insurance—In the digital era, this coverage may be necessary to maintain financial stability due to data breaches and other cyber incidents.
Get the Right Coverage
Contact Thornburg Insurance Agency today to assess your charity’s coverage needs, identify suitable options, and build an ideal insurance portfolio.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.