Nonprofit organizations face a unique set of risk exposures that for-profit and conventional organizations seldom have to deal with. Because of this, nonprofit organizations need specialized coverages that are unique to them. Unfortunately, this leads to questions regarding what is covered and what is not covered.
GuideStar, a nonprofit information gathering company, posted an article labeled “Insurance Trips & Traps for Nonprofits” that we found particularly interesting and helpful for nonprofit organizations. Basically, the article states different kinds of issues in a nonprofit insurance program that organizations should be aware of. Here are a few statements that stood out from the article:
Liability Insurance: Many times employees are listed on the policy as to who is insured, however this is not the case when it comes to volunteers. If volunteers are left uninsured by the organization they are left to depend on their own insurance if something were to happen. Insure your volunteers.
Abuse/Molestation Coverage: This part of a policy is sometimes excluded and most likely an endorsement. This part of liability insurance is especially important if your nonprofit organization includes elderly or children.
Professional Liability (Malpractice insurance or Errors & Omissions): Especially important in the health care or human service sector. Professional liability would protect the organization from legal issues.
Automobile Insurance: Basically, make sure everyone is insured, as most commercial auto policies do not include employees or volunteers. Add the coverage and also be sure to add the non-owned vehicles to the policy as well so that whether they are driving a company vehicle or their own vehicle while doing business they are fully insured.
Other things to note would be your workers compensation insurance and also your property insurance. Ask your agent a few questions: Should your volunteers have injuries while working, will they be covered under workers compensation policy or would it be better to have an accident insurance policy? Also, should there be damage to the property rented for the organization is the property insurance enough to pay for the damage?
Beacon Insurance Group specializes in non profit insurance in South Carolina and surrounding areas and is more than willing to assist you in creating an insurance program especially for you. . If you are a nonprofit organization in search of insurance options, please do not hesitate to give us a call or fill out our online quote request.
Beacon is also a proud member of the South Carolina Association of Non Profits (SCANPO) and will be attending the annual conference at the end of February.
For more information, visit GuideStars website: www.guidestar.org