How Do You Insure Your Non-Profit?

Every non-profit is unique. Whether you work with vulnerable populations, rely on volunteers, put on fundraising events, transport the elderly, employ social workers, or other activities, your insurance needs are very specific to your operations.

Non-profit insurance is business insurance designed to accommodate the needs of a not-for-profit organization. Having business insurance for non-profit organizations can be crucial as it can protect against a variety of risks, from car accidents involving business vehicles to a client’s slip and fall in the office.

What Types of Insurance Policies Do Nonprofit Organizations Need?

There’s no master list of the types of insurance policies that non-profit organizations should purchase or what amounts of coverage they should buy. Instead, non-profits must rely on the expertise of local, licensed, experienced insurance agents to help them find the best insurance policies for their needs.

Following is a short list of some of the more common types of policies about which non-profit organizations should ask their insurance agents. They may need fewer policies and they may need different policies to cover different types of exposures and risks.

General Liability

All non-profit organizations should purchase general liability insurance. It covers against claims made by third parties for bodily injury and property damage that occurs in the course of the non-profit’s operations.

Property Insurance

Property insurance covers damage or loss to buildings, office equipment, inventory and any other property the non-profit owns. Fire and theft are common claims. Boards should be aware that not all insurance policies cover against floods and earthquakes.

Auto Insurance

Non-profits may buy auto insurance if their boards or employees use autos for non-profit business. You may purchase liability coverage to cover others and physical damage coverage for owned autos. Non-profits may also consider non-owned auto insurance coverage for volunteers who use their own vehicles for non-profit volunteering. Read more on non-owned auto policies here.

Workers’ Compensation

Workers’ compensation will provide coverage for payrolled employees who get injured on the job. This type of insurance is mandatory in California. This coverage will provide for medical expenses and wages if an employee gets injured while working for the nonprofit.

Directors and Officers Liability

This is another type of insurance that non-profits should not be without. It provides coverage for management decisions that board directors and officers make. D&O insurance protects the organization and individual board members. D&O insurance policies sometimes include insurance coverage for employment practices liability, which extends to volunteers as well as employees. This coverage protects against claims for harassment, discrimination and wrongful termination. Always consult with your local independent insurance agent to be certain of your exact coverage.

Professional Liability

Depending on it’s operational classification, a non-profit may have a professional liability exposure. Professional liability insurance is also referred to as errors and omissions insurance. Always consult with your local independent insurance agent to be certain of your exact coverage.

 

Questions? Want to learn more? Here’s 4 easy ways to reach us:

Phone: 877-994-6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

PS Here’s a few words from one Non-Profit Organization that trusts Stromsoe Insurance Agency:

“We are so pleased with your organization; it makes our job so much easier to have people like all of you to work with. I recently shared this with another local business owner, we praise you guys to the hilt”
Dorcas Shaktmas – Assistance League of Temecula Valley – Temecula, CA – Client Since 2012

PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!

What is Business Insurance?

If you only take away one thing from this post, let it be that you should make sure your coverage is the right fit for you and your business before disaster strikes.

The purpose of business insurance is to minimize the financial risk that comes with running a business. Whether you’re running a company on your own or building a seven-figure or more empire with hundreds of employees, your business carries certain risks.

When it comes to commercial insurance, there are six key, main categories:

  1. General Liability Insurance – this will protect your business for anything it’s legally obligated to pay for due it’s business operations
  2. Product Liability Insurance – this would help with a financial loss due to a defect in product
  3. Professional Liability Insurance – negligence, malpractice or errors when providing your service would be covered by this
  4. Commercial Property Insurance – inventory. equipment, tools, machinery or buildings owned by your company would need this
  5. Workers Comp Insurance – provides wage replacement and medical benefits to employees injured in the course of employment
  6. Commercial Auto Insurance – Vehicle insurance providing liability, uninsured motorists bodily injury, medical payments, comp and collision coverage, rental benefit, hired and non-owned auto liability and physical damage and more….all designed to protect your business

If you run a business, it’s safe to say that you will need business insurance. This may seem like just another cost, but you might find it’s not as much of a dig in your budget as you might expect. If you are a client of Stromsoe Insurance Agency, you’ve already made one huge step towards savings! The beauty of using an independent insurance agency, is that we do the shopping around for you.

Here are some of the claim scenarios businesses have been sued over from our industry claim journals:

  • At Oktoberfest, an intoxicated person did the chicken dance on a table. He fell off, broke his arm, and sued the city! He won an undisclosed amount. Now you know where to get your next “accidental” injury!
  • Convenience stores are a target. During a drive-by shooting, a person pumping gas was shot and sued the store.
  • People fighting in a parking lot get injured and sued the store. Talk about misplaced anger.
  • One winter, there was an icy parking lot. A man slipped, fell, and injured himself. He then sued the store for not clearing the ice, despite winter weather warnings nationwide. Convenience stores don’t have it easy!
  • In a correctional facility, a day visitor and an inmate were getting cozy on a picnic table. The table broke, injuries were sustained, and the prison was sued.
  • A consumer bought frozen raspberries and laid them on her kitchen counter to thaw. The package leaked and her countertop got stained. She then sued the food packaging company and ended up with all-new kitchen counters!

Bottom line: Make sure to partner with your local, independent insurance agents who cares about you to make sure you understand how to insure your business so you leave nothing to chance —  raspberry stains and all.

Questions? Want to learn more?

Here’s 4 easy ways to reach us:

Phone: 877.994.6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

PS Here’s a few words from one business owner that trusts Stromsoe Insurance Agency:

“AMAZING Staff, Service and Protection! I wouldn’t trust my business insurance to anyone else! Thank you for always looking out for me!”
Dione Moser – Co-Working Connection and Impact Marketing – Murrieta, CA – Client Since 2013

PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!