Nonprofit organizations are a driving force for change and good in society. They are not exempt from liability and risk, though. The right types of insurance can help your nonprofit manage those risks and reduce personal and business liability.
What Risks Do Nonprofit Organizations Face?
A nonprofit is like any other business in that they will face certain risks. These can be managed with appropriate insurance policies.A few examples include:
- Liability from faulty products
- Property and equipment damage
- Loss due to theft, fire or vandalism
- Transportation-related losses
What Determines the Types of Insurance Nonprofits Need?
There are several factors that determine the types of insurance a nonprofit organization should have in place. One of those is the makeup of paid and volunteer staff.When volunteers work to drive the mission forward, nonprofits require specific volunteer insurance to protect them from liability. It can cover injuries caused or sustained by a volunteer. Specialty products protect against claims resulting from a less-than-honest volunteer, such as in cases of forgery, theft or embezzlement.
The type of goods or services you provide will also impact your coverage. You may need product liability insurance to guard against claims for damages resulting from product use. Specialized transportation policies that cover company vehicles being used to make deliveries or transport clients are also very common.
Always discuss your operations and structure with your insurance agent. This will help you tailor a custom policy to the unique needs of your business so you can focus on your mission instead of worry about liabilities.