Nonprofit Insurance Program

Commercial Insurance: Covers more than just your Nonprofit Building

By Alexa Connelly
April 03, 2013

Like all other organizations, nonprofit organizations experience risks in their line of duty. They are susceptible to damages and other emergencies like fires which may claim their property and tear down their buildings. As such, insuring the non organization is a sure way of guaranteeing compensations.

Non profit business insurance has a large scope due to their special risks. It covers some of the following areas:

Insurance on commercial general liabilities.

This is covers on damages by the organization to a thing; say a home and a person. It also involves insuring against legal claims that may arise in future. Depending on nature of the organization the insurance will provide indemnity and defense in the court of laws if any claims are made against the organization. An institution may not only be destroyed by the poor reputation as a result of the suit but the legal costs involved in covering the expenses of the lawyer. This kind of insurance is thus very viable to the nonprofit organization. This insurance will also cover commercial leases and rentals.

Motor vehicle insurance

The nature of a nonprofit emphasizes on voluntary services in a number of things. As a result, workers would always make use of their personal cars or rent out. This necessitates insurance covers by the organization just in case of accidents. In instances where the organization owns vehicles it should acquire commercial auto insurance which covers   the people it transports excluding its workforce.

Property insurance

This is the most critical nonprofit business insurance .It protects covers the property owned by the organization whose loss will lead to it’s the downfall and closure. It is important to speak to an insurance expert on the guidelines of insuring a nonprofit business profit. There is a wide variety of things involved in such covering, something that not all organizations understand. It includes data, computer, leased buildings, owned buildings, sports and medical devices. It is not necessarily mean physical location cover.

Insurance cover on officers and directors.

It is not usually preferred since of the abuse it gets from those covered since they view themselves as indispensable. Though crucial if not misused, most nonprofit organizations rethink this option when they are considering business insurance because it is also very expensive and yet can be avoided.

Other areas that nonprofit organizations should consult for their business are theft and workers compensation.

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