CalNonprofits Guest Blog Post:
At CalNonprofits Insurance Services, we understand the unique risks faced by nonprofit organizations. Not only do you need coverage to protect your assets, board, and staff; it may also be necessary to comply with the guidelines of your funding sources. Below is some general information about coverages that may be appropriate for your nonprofit.
General Liability: Protects your agency against a wide range of claims from third parties which might result in bodily injury, property damage, or personal and advertising injury.
Property: Protects the assets of your organization such as buildings, office equipment, office furniture, and loss of income/revenue. The types of perils that could be covered include fire, windstorms, theft, or vandalism.
Inland Marine: Covers mobile property or property that needs enhanced coverage such as computers, signs, theater equipment, cameras, accounts receivable, and valuable papers.
Directors and Officers (D&O): Provides coverage for decisions made by the directors, officers, trustees and managers. Can also include coverage for employment related actions, including allegations of wrongful termination, harassment and discrimination.
Auto: Protects the agency against bodily injury and property damage caused by employees and volunteers driving personal autos, rented autos, or agency-owned vehicles.
Professional Liability: Covers errors in providing or failing to provide professional services. Professionals can include mental health workers, counselors, teachers, social workers, lawyers, medical providers, publishers, and consultants.
Cyber Liability: Designed to cover exposures associated with: privacy breach, the infringement of intellectual property, virus transmission, or any other serious trouble that may be spread via the web/email. Cyber Liability also provides cutting edge protection for data breaches related to the loss of laptops, smart phones, tablets, and other computer equipment when stolen by employees or others outside of your organization. Any nonprofit with an online presence, receives donations via the web, network or database is at risk for errors, negligence or cyber crime should consider purchasing this insurance.
Improper Sexual Conduct or Sexual Abuse/Molestation: Protects your organization against bodily injury claims of sexual/physical molestation and abuse.
Employee Benefits Liability (EBL): Covers specified damages from an organization's negligent handling of the administration of employee benefits program. (endorsed onto the General Liability Policy)
Crime: Protects the agency from monetary loss. Coverages include Employee dishonesty/Fidelity, Fraud, Monies & Securities, Robbery/Burglary.
Equipment Breakdown: Covers the mechanical breakdown of equipment which is typically excluded from the Property policy. Sometimes called Boiler & Machinery.
Umbrella/Excess Liability: Provides higher limits of liability your primary policies. Usually applies to general liability, employer's liability and auto policies. Can sometimes go above Directors & Officers policy.
Workers Compensation: Required by law to protect employees from wage loss & medical expenses caused by injury, illness or death on the job. Some carriers will include volunteers.
Accident: No fault medical coverage for participants in your programs, students, and volunteers
Catastrophe Insurance: Property policies typically exclude losses caused by earthquakes and floods. You can buy separate Earthquake or Flood insurance or a policy called Difference In Conditions (DIC) that can cover one or more excluded causes of loss.
Risk Management: Insurance is one risk management technique – transferring your risk to someone else (insurance carrier). Good loss control programs and additional risk management practices will help you save money one all lines of insurance.
CalNonprofits Insurance Services is a subsidiary of the California Association of Nonprofits, providing exclusive and cost-savings insurance programs including all of the coverages listed above and Employee Benefits programs. For more information, click here.