It’s no secret that nonprofit organizations often operate on tight budgets. It’s important to get the most impact possible out of every dollar.
That makes a smart insurance strategy even more important.
At E.L. Sanders Insurance Agency, insuring nonprofits is one of our specialties — and one of the aspects of our jobs that we enjoy most. In Southern Maryland, Virginia and throughout the region, we’ve had the opportunity to work with extraordinary people and organizations who are doing incredible work every day. We want to make sure they are always covered because they have bigger things to worry about.
Just like any business, every nonprofit is unique. Depending on their operations model and their staffing and leadership structure, their insurance needs can vary. That said, here are four of the policies we find most valuable for the nonprofits we serve:
General Liability Insurance
General Liability insurance covers business liability exposures that arise out of the daily conduct of a nonprofit’s business operations, one of the most important of which is its premises and operations exposure. This is liability arising out of the location or the activities of the nonprofit. This includes liability for bodily injury, property damage and personal and advertising injury.
Commercial Property Insurance
Commercial property insurance provides a wide range of coverage for buildings, inventory, equipment, tools and more. Losses from fire, break-in, vandalism, windstorm and other natural or man-made disasters are examples of what is typically covered. Most nonprofits could never afford to replace all of their computers and office equipment on their own after such an incident, which means commercial property insurance should always be considered a necessity.
Commercial Auto Insurance
Commercial auto insurance can cover a combination of vehicle types (trucks, cars) and drivers, as well as other types of motorized equipment that are vital to the operations of a nonprofit organization. It provides for bodily injury liability and property damage while operating a company automobile, medical payments or Personal Injury Protection (PIP) for the driver and passengers of the policyholder’s car. Injuries or damage to someone else are also covered.
Directors and Officers Coverage
If a nonprofit has board of directors and organizational officers, this coverage is vital? It protects board members and organizational leaders against any claims made against the organization. Typically in the nonprofit world, the most common claims are employment-related. They may also involve claims of conflict of interest. This coverage provides you the support you’ll need if and when an issue arises.
This list of four key coverages should not be considered an exhaustive list. Depending on the way a nonprofit operates, it could also need employee health coverage, professional liability insurance, cybercrime and ransomware coverage, and more.
If you’re running a nonprofit and are unsure if you’ve got the appropriate coverage — or if you’re getting the best value out of your policies — reach out to us today. We have decades of experience insuring nonprofits, and we’d love to help you find the right policies so you can focus on doing what you do best.