Many non-profit organizations operate on a scant budget with limited budgets. For these organizations, just one unexpected expense could be catastrophic and may lead to closed doors. The best way to guard against this situation is get the right combination of NPO insurance. There are a few types of insurance that every non-profit should purchase.
General liability insurance protects a non-profit organization against accidents such as a slip-and-fall injury. This type of policy protects the organization from having to pay damages if people are injured on the nonprofit’s property.
Property insurance is another popular coverage. This insurance protects the non-profit from disasters such as vandalism, earthquakes, and storms. To be sure that the NPO insurance truly covers all of the property, review the policy to be sure that office supplies, furnishings, inventory, and equipment are all listed.
If any of the volunteers or employees of the organization do any driving for as part of their responsibilities, then auto insurance is another must-have. The legal requirements for this insurance vary from state to state.
A few other types of coverage that a non-profit may want to consider are product liability, directors and officers insurance, and professional liability. If any of the staff are actually employed by the organization, then workers’ compensation and unemployment insurance are required by state and federal law.
The best way to be sure that your non-profit organization truly has the right insurance coverage is to visit with an insurance provider about NPO insurance and how to obtain it.