The organization carries Directors and Officers (D&O) Liability Insurance. As deemed necessary, we carry insurance for our properties, events, and an umbrella policy in order to protect its assets.

November 1, 2021

By Megan Pierce, Donor Services Director

SOURCE: www.boardeffect.com

Following is a short list of some of the more common types of policies about which non-profit organizations should ask their insurance agents. You may need fewer and different policies to cover different types of losses.

General Liability

All nonprofit organizations should purchase general liability insurance. It covers against claims made by third parties for bodily injury and property damage that occurs while the nonprofit’s operations.

Property Insurance

Property insurance is pretty self-explanatory. It covers damage or loss to buildings, office equipment, inventory and any other property the nonprofit owns. Fire and theft are common claims. Boards should be aware that not all insurance policies cover against floods and earthquakes.

Auto Insurance

Nonprofits may buy auto insurance if their boards or employees use autos for nonprofit business. Nonprofits may purchase liability coverage to cover others and physical damage coverage for autos. Nonprofits may also consider non-owned auto insurance coverage for volunteers who use their vehicles for nonprofit volunteering.

Workers’ Compensation

Workers’ compensation will provide coverage for employees who get injured on the job. This coverage will provide for medical expenses and wages if an employee gets injured while working for the nonprofit.

Directors and Officers Liability

D&O insurance provides coverage for management decisions that board directors and officers make. D&O insurance protects the organization and individual board members. D&O insurance policies often include insurance coverage for employment practices liability, which extends to volunteers as well as employees. This coverage protects against claims for harassment, discrimination and wrongful termination.

Professional Liability

Boards of directors can forget to tell people things or make mistakes. Professional liability insurance is also referred to as errors and omissions insurance. It protects against claims made as a result of a board director’s action or inaction.