Nonprofit Insurance Program

8 Types of Insurance Every Social Private Club Needs to Understand

By Alexa Connelly
May 05, 2017

Social clubs like VFW’s, Am Vets, and Knights of Columbus are a place where members go to enjoy their time. Members choose to join clubs to participate in fun activities, for the camaraderie, or to be part of your mission. You fill a need in their lives. Like any business or nonprofit, you face unique risks every day that can impact your business. The only way to protect your social club and members is to have the right insurance protection in place.

Take a look at these eight types of insurance that protect you from the unexpected.

  1. General Liability

General liability insurance protects your social club from lawsuits filed by third-party individuals like members and their guests. The most popular type of general liability claims are slip and fall injuries on your property. Other types of claims that fall under general liability insurance policies include property damage, medical expense, personal and advertising injury, and costs to defend the lawsuit.

  1. Liquor Liability

Liquor liability is a critical insurance coverage every social club needs if they serve alcohol. No matter how careful you are, serving alcohol is risky. You never know how much members or guests consumed before arriving, and you can’t predict their actions when they leave. Liquor liability protects you when you are legally liable for damages that occur, like a car accident, because of the alcohol your club served.

  1. Special Events Liability

As a social club, you invest a lot of time into community events. General liability policies often exclude coverage for these events. You can buy it to cover participation in parades or vendor events, and club-sponsored activities like bingo and picnics.

  1. Employee/Volunteer Theft

Every business hopes they hire the right employees. According to Global Retail Theft Barometer, employee theft accounts for 43% of lost revenue in the United States! An important insurance coverage is available to protect social clubs from employee or volunteer theft. Employee dishonesty coverage protects you from financial loss due to employees stealing money or property.

  1. Board of Directors

Your board of directors volunteers their time to serve your mission. You hope their intentions are well. From time to time a director faces accusations of mismanagement of funds or even discrimination from another board member. In these cases, the director’s personal assets are at risk and will not be covered under your other policies. Directors and officers insurance protects board members personal assets during a lawsuit.

  1. Assault & Battery Liability

Drinking too much alcohol can result in fights at your social club. You risk being sued for not providing a safe environment if someone is injured during the fight. Assault and battery liability insurance is an essential coverage to add to your insurance protection plan.

  1. Worker’s Compensation

Worker’s compensation is mandatory in most states. It pays medical expenses and lost wages to employees injured on the job.

  1. Commercial Property

Your building and business assets are necessary to keep your doors open to members. Commercial property insurance pays to replace or rebuild in the event of certain weather-related incidents, fire, vandalism, and theft. You can also buy insurance that provides loss of income in the event you need to close temporarily.

Contact your insurance agent today and find out if your social club has the protection you need in the event any of these incidents occur. If they can’t help you, find an experienced insurance agent that specializes in serving social clubs like yours.

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