3 Types of Insurance All Non Profits Need

Like any other type of business, non profits need to protect their finances, employees and volunteers in order to stay afloat. Does your non profit have the right coverage? Check out these 3 types of coverage that all non profit groups should have:

1. Commercial general liability insurance

Even the smallest lawsuit can break the bank, which is why a non profit insurance plan should always include general liability insurance. This will protect the non profit if a third-party sues the organization and claims it is responsible for a bodily injury or damage to property.

For example, if Sharon accidentally throws out her back while lifting a box of canned goods and sues the non profit, general liability insurance coverage will include compensation for any related court or legal fees.

2. Vehicle insurance

If your non profit uses any types of transportation for business operations like a car, truck or van, it needs the proper vehicle insurance. There are two different types to consider:

Commercial vehicle insurance: If the non profit owns a vehicle or a group of vehicles, all will need to be insured to meet your states minimum liability coverage requirements. This coverage protects the non profit in the event the driver is in an accident while driving a company vehicle.

Not-owned or for-hire vehicle insurance: If staff or volunteers of your organization use their own personal vehicles to do company work, the non profit organization can be held liable if they are in an accident. This vehicle insurance includes liability coverage whenever a staff member or volunteer uses their private vehicle for work-purposes.

3. Property insurance

No matter the size or stature of a non profit, they still need property insurance. Property insurance includes coverage for everything from computers to furniture to signage and is extremely important and a life saver in the instance of a fire, burglary or vandalism.

NOTE: Be sure to check with your agent regarding flood damage – you may need to purchase a separate business flood insurance policy depending on the location of the non profit.

One last piece of advice for future non profits

One last piece of advice is to always purchase enough coverage to protect all the belongings owned by your non profit. Skimping on insurance may be great to meet short-term financial needs, but in the case of an injured employee or robbery, having the right amount of coverage can be the deciding factor in the financial stability and success of your non profit.

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