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What Is Non-Profit Insurance and Do You Need It?

Studies suggest non-profit companies can file around twice as many of some types of insurance claims as other companies. The unique position non-profits occupy means they need to be on the ball when it comes to protecting themselves. But what even is non-profit insurance and how can it benefit you?

This article seeks to answer the above questions and more. By the end, you should understand how to seek out such coverage for yourself and know who the best broker to engage with is.

What Is Non-Profit Insurance Coverage?

As a non-profit, no matter your specific mission, your structure is likely very different from other groups. No matter who you are, you will likely find yourself in unique situations needing insurance.

When you talk to an insurance agency, they are likely to offer you specific types of insurance to cover these situations. If the broker offers you several kinds of coverage as a bundle, they are likely described as “non-profit insurance“.

Examples of the type of insurance you might get in such bundles include:

General Liability Insurance

This covers your company should someone else suggest you caused them any harm. You can expect this to cover both legal costs, settlements, and many other eventualities.

The types of harm this covers might include property damage, personal injury, or even reputation harm. You must talk to your insurer to discuss specifics to learn more about what they cover.

D&O Insurance

This insurance protects the board members, as well as the directors and officers (D&O), against claims. Usually, these occur when people believe management decisions have caused harm. This can protect against things like allegations of mismanagement or poor employment practices.

Employment Practices Liability Insurance

This insurance ensures the company can protect itself against allegations by employees. These include wrongful termination, sexual harassment, or discrimination lawsuits.

This coverage can help ensure allegations receive the due diligence they deserve. By doing this it offers employees an understanding they work in an inclusive organization.

Event Insurance

As a non-profit, you might host a variety of events. This ensures that any harm occurring at an event receives appropriate coverage.

Do You Need Non-Profit Business Insurance?

If you are starting to make waves, and someone makes a claim against you while you do not have insurance, you could end up in financial hot water. As such, insurance can allow you to continue with fewer bumps in the road. Non-profit insurance providers can thus offer you a shield against such a situation.

Pick Up Non-Profit Insurance

With these facts, you are likely to have a better handle on the concept of non-profit insurance. Still, you need to know what your business insurance options are when it comes to engaging with a specific broker. This is where we can help you out.

We are one of the leading non-profit insurance providers in the New Jersey area. We can discuss your needs and help you understand what you must do to protect yourself moving forward. So, give us a call today to learn more.