All businesses have liability exposures that require insurance coverage. As a nonprofit organization, there are several risks to consider. Here are three of those risks.
Bodily Injury and Property Damage
Even with safety precautions in place, accidents may still happen. If a third-party suffers injuries or if your staff damages a third-party’s property, then you could be liable for any damages. Without general liability insurance, the costs are your responsibility.
Motor Vehicle Accidents
General liability coverages will not cover damage to vehicles. If your employees use their personal vehicles for work purposes, their private insurance may not cover an accident. If your organization owns cars, then you need to have motor vehicle coverage. However, if your company does not own vehicles itself, you should check out hired or non-owned auto coverage.
Mismanagement of Resources
Lawsuits may claim that the organization’s directors or officers breached its duty, mismanaged funds, or put board members or a third-party’s assets at risk. Directors & Officers liability insurance protects the organization and upper management in case of a lawsuit. Directors & Officers liability coverage is for settlements, defense costs and any judgments.
As a nonprofit organization, you have a variety of risk exposures that you need insurance coverage for. The type of nonprofit liability insurance your company needs will depend on the circumstances of your business.