Your mission is clear and important. Volunteers are ready to help and donors are lined up to contribute. The next step is execution, including insurance for your non-profit organization.
Non-profit organizations serve a very wide range and will have very different insurance requirements. However, they also share common challenges. Often, non-profit organization will evolve causing new insurance issues to emerge.
Liability for Good Works
The city has offered an in-kind donation of office space. An event venue has a room for your fund raiser. Your new clinic lease is ready for signature. In the “fine print” of each of these opportunities is an insurance requirement for public liability. The written insurance requirement typically will call for a quantity of liability plus naming the landlord / event venue as an additional insured. Also, typically in the “fine print” is an Indemnity or Hold Harmless clause that triggers an additional insured requirement called a “Waiver of Subrogation.” Meeting these commercial insurance requirements is part of the price of achieving your good work.
Don’t Take Insurance for Granted
Your grant proposal has been approved! Part of the grant requirements often will be commercial insurance requirements. You won’t get the funding your group needs without handling the grant agreement’s specifications. Besides public liability, grants that include hiring people often require worker’s compensation insurance. This is insurance protection for the employer (your organization) for lawsuits from injuries that occur to workers during the course of their employment. It also helps an injured employee with medical costs, rehabilitation and lost wages while recovering from a work related injury.
Insuring an Effective Board
An active and involved Board of Directors is a critical component for most non-profit organizations. Your volunteer board members will be called on to make the tough decisions and are responsible for oversight of your activities, particularly employment decisions. They are also primary community connectors and fundraisers for your group. Directors and Officers Insurance is critical to protect them from lawsuits that can erupt which can entangle them personally.
Equip Your Group
As your non-profit organization grows, insuring your group’s equipment and office contents can become a critical risk. A fire, burglary or other loss can destroy these assets and undermine your ability to do your good work. Property insurance can be “packaged” with your General Liability to add insurance protection for these assets.
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Many non-profits depend on volunteers to drive their own autos. Non-owned auto coverage is an important safeguard to your organization. It provides liability coverage if the group is targeted after an accident when a volunteer is driving their own personal auto for the group.
Retaining Key Staff
Attracting and retaining skilled staff comes with the need for a group benefit plan particularly group health insurance. Small group benefit plans can be obtained once your group has at least two full-time employees. As the employer, your group will be required to pay at least 50% of the employee health insurance benefit cost.
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