Directors and Officers Insurance: D&O insurance helps protect your organization’s directors, officers and board members from liability resulting from management decisions. Just a few examples of how such individuals can put themselves at risk include:
- Committing a crime
- Failing to disclose a conflict of interest
- Breaching their fiduciary responsibilities
But even if directors or officers do nothing wrong, they still can be held financially responsible for others’ missteps if they’re sued and the organization lacks sufficient assets to protect them.
General Liability Insurance: As a non-profit entity you need more than standard general liability coverage. Your general liability coverage should include at least the following three basic liability coverages designed for non-profits:
- General Liability
- Professional Liability
- Abuse and Molestation Liability
General liability is the policy that addresses bodily injury or property damage claims. General liability also includes a defense for personal and advertising injury claims, such as copyright infringement.
Professional liability covers an organization for services that could be considered professional in nature, whether you employ licensed professionals or not. If you have a mentoring, educational, life skills, counseling, or case management exposure at all, then professional liability is a necessary consideration.
Abuse and molestation liability provides defense and, if required, claim settlement funds for lawsuits involving abuse and molestation incidents. These claims can be a result of accusation from a client regarding an employee, volunteer, or contractor act of abuse. They can also result from negligent supervision that results in client or student abuse or molestation incident.
Workers Compensation: Employers in Massachusetts are required to carry workers compensation insurance covering their employees. This requirement applies to full time and part time employees.
Workers compensation pays medical expenses, disability, and death benefits for injured workers.
Here is the link to read more about this Massachusetts requirements for workers compensation insurance CLICK HERE
Property Insurance: If your non-profit owns a building, rents spaces or owns any business personal property such as computers, you will want to review the insurance options for these items. Any property that is key to your organization, may need property insurance.
Auto Insurance: Even if your non-profit does not own a vehicle, you should have a business auto policy that provides coverage for hired/non-owned auto coverage. If you own a car, you need a business auto policy.
Non-owned auto liability provides some liability protection for your non-profit when someone uses his or her vehicle for activities related to the non-profit: running errands, transporting clients, etc. Hired auto liability may also provides liability protection when your non-profit rents a vehicle.
Umbrella Liability Insurance: Sometimes called Excess Liability Insurance, Umbrella Liability Insurance works by increasing the protection limits on some of your existing liability policies. Why would you need to do that? Accidents do happen and people can get seriously injured. Adding umbrella liability to your insurance program is a cost effective way to protect your agency’s assets from liability awards.
Cyber Liability and Data Breach: Non-profits can easily experience cyber theft. Your non-profit may have a greater risk than you realize.
Donor data, employee data, confidential client data and more can be accessed on a non-profit’s computer servers, desktops, and laptops. If this data is compromised your non-profit may be responsible for expensive data breach costs and costly liability suits.
A properly designed Cyber Liability and Data Breach policy will provide your non-profit with proper protection from these situations.
Employment Practices Liability: Even in the non-profit sector we see the need for Employment Practices Liability. Basically, if you have any employees you should have the coverage.
Employment Practices Liability Insurance (EPLI) includes coverage for defense costs and damages related to various employment-related claims including allegations of Wrongful Termination, Discrimination, Workplace Harassment and Retaliation.
Accident & Health Coverage: Volunteer accident insurance pays for minor injuries to volunteers who are donating their time and expertise to your cause. This coverage along with Workers Compensation are important because they address injuries to your human assets – your employees and your volunteers.
Events Coverage: Raising funds for your agency is critical to fulfilling your agency mission and delivering the services to meet your client’s needs. Events Coverage protects you by providing liability coverage during these fundraising events.
Employee Dishonesty: This crime coverage, Employee Dishonesty, helps replace funds stolen by an employee. Many municipal contracts or foundation grants require non-profits to have this coverage in place. Often, this type of crime is perpetrated over a longer period and, when discovered, causes major distrust issues between a non-profit and the community.