Non Profit Liability Insurance
Although they are not in business to get rich, non-profit organizations usually have to carry
non profit liability insurance. Believe it or not, non-profit organizations face lawsuits, just like any
other company. The main form of coverage for these organizations is commercial general liability. Provisions
include compensation for clients who slip and fall on the premises, clients who receive personal injuries as a
result of the building or employees that cannot be controlled, advertising injury and third-party damages. Any form
of damage that can be controlled may not be covered.
One of the most common forms of insurance designed for non-profit organizations is for social
service professionals. The company or individual will purchase this coverage to compensate for any lawsuits
resulting from negligence, omissions or errors in professional to peer counseling and personal damages that are not
under the control of the professional or organization. Some organizations that employ medical professionals must
purchase typical medical malpractice insurance also.
Non Profit Liability Insurance - What You Should Know
Another important provision on many non profit liability insurance policies is
coverage for a hired or non-owned automobile. Any accidents that are beyond the control of the workers may be
covered, especially if a client being transported is injured. An example of this coverage would be a social worker
who removed endangered children from an abusive home and experienced a not-at-fault accident that resulted in
injury to them.
Directors and Officers liability is often purchased for a non-profit
organization. This form of insurance pays compensation for any "intentional" acts or decisions by directors and
officers that cause harm. It is important for organizations to have this insurance, as most typical liability
policies do not cover "intentional" acts.
Non Profit Liability Insurance - Umbrella Policy
Large non-profit organizations often add an umbrella policy. This allows
flexibility to increase the coverage amounts of a commercial general liability policy. Sometimes the lawsuit's cost
exceeds coverage, which is problematic for an organization that doesn't earn a profit they can use to pay
Non profit liability insurance policies usually cover the accidents and injuries
of employees, students and volunteers. Since the company can't pay them directly for expenses, the insurance
company will. Workers compensation is covered under this provision. Many students, especially those who are
enrolled in professional degree programs, have their own form of insurance that the school requires them to carry
for clinical work. However, if it isn't sufficient, this clause will usually cover any damages resulting from
student workers or injuries they may suffer.