Top Reasons Why Nonprofit Organizations Need Insurance
- Ensure the Safety of Volunteers
When volunteers get injured, they will often face expensive medical bills. In order to allow volunteers to seek the necessary medical treatment, organizations must be able to cover some of the cost.
- Protect the Board and Employees of the Company
Nonprofit organizations and their board members frequently face lawsuits for numerous allegations such as discrimination, harassment, or wrongful termination of employees, inefficient administration or supervision, waste of assets, misleading reports, and slander. As charitable immunity fades and more nonprofits continue to be sued, the cost to defend an organization from lawsuits can be very expensive. Without the correct coverage, lawsuits can threaten the organization financially and also negatively impact the personal assets of nonprofit executives and trustees. Most General Liability policies will not protect board executives, so D&O Insurance is needed for this protection.
- Protect the Organization When Accidents Happen
If any property gets damaged or person gets injured, an organization may be found liable for the losses. 3rd Party claims of bodily injury, property damage (hosting an event or using someone else’s equipment), or personal injury can all seriously threaten an organization. They can be held responsible for creating an environment where the accident occurred and thus will be liable. A General Liability policy will help cover such losses. Also a Professional Liability Insurance policy will help cover those errors and omissions for when an organization gets sued for failing to deliver an expected result.
- Secure the Property Owned by An Organization
Sudden/ Accidental loss of property by means of fire, theft, or water damage can devastate an organization. Equipment such as desks, chairs, offices, and computers can all be expensive to replace if damaged beyond repair.
Compared to the costs of certain liability losses, insurance is relatively inexpensive to purchase in order to protect not only the officers and directors of the organization, but also the entire organization itself. Accidents such as dog bites, people tripping over loose animals, veterinarians getting injured, and even problems with the building in which the shelter is placed can all create problems within a nonprofit animal welfare organization. With good coverage, your nonprofit will have the funds to cover those sudden losses so that you can focus more on helping the community.