When a nonprofit evaluate insurance coverage options, there’s a lot more to consider than just general liability. Here is an overview of a few different types of coverage that address the unique operational needs of nonprofits.
Directors and Officers
Directors’ and officers’ policy is one of the most important types of nonprofit insurance coverage. The policy protects corporate directors from individual liability incurred during the performance of their duties on behalf of the organization. Having this level of personal coverage is imperative to building and sustaining an engaged board.
When an organization serves a high-needs population such as the residents of a nursing home or the student body of a charter school, its liability exposure may be particularly complex or unique. Source: https://hilbgroupfl.com. Professional liability insurance can protect an organization against a variety of different claims including negligence, malpractice, mismanagement, or discrimination.
Many nonprofits are small enterprises made up of dedicated individuals who tend to wear more than one hat. When a vital employee is suddenly unable to carry out his or her job duties, the effect of the organization can be devastating. Key employee insurance equips an organization to address unforeseen expenses and continue operations when it loses a key team member.
Choosing the right coverage levels can be difficult to navigate, and it’s important to consult with experts. Decisions about coverage elections should be made at the board level and should ideally be reviewed during every policy renewal period.