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Non-Profit Insurance

Non-profit organizations range from fraternal organizations and charitable foundations to houses of worship. If you have built up a non-profit organization, commonly referred to as an NPO, then it is important you have the right protection in place. Non-Profit Insurance will shield your organization from potentially devastating financial loss. Non-Profit Organization Insurance is especially important if your establishment works with a large number of people and large amounts of money.

What Is Classified As A Non-Profit Organization?

As a non-profit organization, you do not pay out your surplus earnings to any investors, nor do you pay a board of directors. Instead, the money that your organization generates is reinvested into your non-profit business to further your cause and help you achieve your goals.

A non-profit organization may be something like the parent-teacher organization of a school, a reunion committee of some sort or even a larger organization, such as a charitable foundation or a church. A non-profit organization will generally have a board or controlling members. In addition, there may also be a staff of employees that may or may not receive compensation for the work that they do for the organization. In some cases, executives work on the board of non-profit organizations for a nominal fee.

There is a common misconception that a non-profit organization must be a charity that is exempt from paying any taxes. On the contrary, most non-profit organizations do not even fall into this category. A charitable organization does not usually have employees that are paid a salary. The money that they generate come entirely from their fundraising efforts. The surplus is used for the aid of others and not invested back into the organization.

The Kind Of Nonprofit Insurance Your Organization Needs

Just like any other type of business, a non-profit organization needs to have proper protection in place to keep their finances and assets secure. The only way to do this is with a suitable policy. Non-Profit Insurance policies from Risman Insurance Agency are specifically designed with coverage that meets the unique needs of such groups.

If you are the owner or operator of a non-profit organization, it is wise to make certain that you are fully protected against any type of damage or loss. Some of the coverage options that you will need to consider include;

  • Commercial general liability coverage
  • Directors and officers coverage
  • Property coverage
  • Vehicle coverage
  • Various types of optional Non-Profit Organization Insurance coverage

Unfortunately, there are a large number of people out there who believe that nonprofit organizations are immune to liability risks and lawsuits. However, a nonprofit organization is indeed responsible for the actions of their volunteers and employees. Therefore, as the leader of such a business, you will take necessary measures to protect your organization, which means obtaining adequate Nonprofit Insurance.

Sufficient Non-Profit Organization Insurance Is Essential

Liability insurance is crucial for non-profit organizations, especially in the litigious society that we live in today. Even if a lawsuit is frivolous, it is still quite expensive. Your policy should include commercial general liability insurance, which will protect you against claims made by third parties that your organization is responsible for property damage or bodily injuries. This coverage will include compensation for the associated legal fees and courts costs.

If you own the building that houses your nonprofit organization and you have a mortgage, your lender will require to you to have an insurance policy that includes general liability coverage. If you rent office space, then you will likely be required to carry liability insurance as condition of your lease.

If you take out a substantial loan for business, the financial institution will require you to have liability insurance. The lender will want to make certain that your organization is not going to go bankrupt, meaning they will have to write off the money that they loan to you.

Renting a venue for one of the many fundraisers that your organization hosts will also require liability insurance. Halls, hotels and even outdoor parks typically require this type of insurance coverage. Therefore, if a guest at your fundraiser is injured the venue will not be responsible for any liability charges.

Workers compensation is also a type of liability insurance that you will want to include with your policy. This type of coverage will pay for any medical expenses that result if one of your employees or volunteers is injured will working for your non-profit organization.

There are other types of coverage that you may also want to include in your policy, such as commercial vehicle insurance. All you need to do right now is click on the quote request button. A Risman Insurance Agency representative will contact you with a risk free quote for Nonprofit Insurance. Once you have the coverage that you need in place, you will be able to rest easy knowing that your organization is safe. Then you can focus on the things that really matter, like raising money for your cause and helping those in need.

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