Nonprofit Insurance in Rockville Centre, NY
As a nonprofit organization, you must account for many of the same risks and exposures as your for-profit counterparts. However, nonprofits may often lack the financial flexibility of other organizations, meaning that risk management and loss control measures are especially important. Even the most diligent and experienced nonprofits may eventually be involved in accidents or incidents that incur potentially devastating financial losses. Fortunately, an adequate nonprofit insurance portfolio can help.
What Does Nonprofit Insurance Cover?
The details, capabilities and limitations of a nonprofit’s insurance package may vary significantly. Although often referred to as a single arrangement, nonprofit insurance is typically composed of several separate policies and resulting coverage will depend on its components. Regardless, nonprofit insurance can generally be thought of in a similar light as other types of coverage; by purchasing coverage and paying your premiums, you may be able to recoup losses related to property damage, liability, revenue and legal issues.
What Kinds of Insurance Does a Nonprofit Need?
For many nonprofit organizations, the following types of insurance may be advisable loss control measures:
- General liability insurance—This type of coverage may help pay for third-party losses arising from incidents for which your nonprofit was at fault, such as bodily injuries, property damage and personal and advertising injuries (e.g., slander, libel, false advertising and intentional copyright infringement).
- Commercial property insurance—This component of your nonprofit insurance portfolio may provide financial protection for your organization’s physical assets, including its buildings, electronics, equipment, furniture and inventory.
- Business interruption insurance—If a covered incident delays or disrupts your organization’s normal operations, this coverage may help pay for ongoing expenses and financial losses, such as rent, loan payments, lost income and employee payroll.
- Workers’ compensation—This coverage may provide financial assistance following employees’ work-related injuries or illnesses, such as by helping to pay for resulting medical expenses, recouping employees’ lost income and covering your organization’s legal fees if a lawsuit is filed.
- Directors and officers insurance—This type of insurance may render financial aid for legal costs and losses if lawsuits are brought against your organization’s board or other leaders.
- Employment practices liability insurance—This coverage may insulate your nonprofit from financial losses if a current, prospective or former employee accuses you of improper workplace practices, such as wrongful termination, harassment or discrimination.
While the aforementioned policies may provide coverage applicable to most nonprofits, your organization should analyze its operations to identify any additional insurance needs, such as for the following:
- Errors and omissions insurance
- Product liability insurance
- Commercial auto insurance
- Cyber liability insurance
Who Needs Nonprofit Insurance?
An appropriate nonprofit insurance portfolio should be a top priority for all organizations regardless of size or sector. These investments may make all the difference in the wake of incidents and could limit financial losses that might otherwise jeopardize your organization’s financial viability and future prospects. Furthermore, some types of coverage, such as commercial auto liability and workers’ compensation may even be required by law.
Get the Right Coverage
Nonprofit organizations have many of the same risks as businesses but must also account for their unique circumstances. Our agents are ready to work with you to determine your nonprofit’s specific insurance needs and craft a nonprofit insurance policy providing optimal protection. Contact J.A. Faccibene & Associates, Inc. today to get started.