Commercial General Liability
Provides coverage for a wide range of acts or offenses which result in bodily injury, personal injury, advertising injury or property damage to a third party. A general liability policy may also extend to special events. If your organization conducts any type of special events, you should make sure that your general liability policy includes special events and that you follow any requirements about providing notice of special events.
Property coverage protects the physical assets you own or lease such as buildings, office equipment, furniture, fixtures, etc. Whether you own or rent the space your nonprofit occupies, consider what your organization might lose in the event of a fire, vandalism, storm, or similar event.
This coverage is mandatory for company-owned or leased vehicles. Business auto coverage may include liability only or may also cover physical damage. The liability portion covers damage to other vehicles or property and injury to others for accidents for which you are at fault. Auto physical damage covers repairs of vehicles you own. Uninsured/underinsured motorist coverage may be purchased with a business auto policy and it provides specified coverage for accidents involving uninsured or underinsured motorists.
If your employees or volunteers use their own vehicles on company business, this coverage is very important. The purpose of this policy is to provide “excess” coverage over an employee’s or volunteer’s personal auto insurance. If an employee or volunteer is involved in an accident while driving on behalf of your organization, and the limits of his or her personal insurance policy are exhausted, this coverage protects the organization.
Directors and Officers Liability
Directors and Officers Liability (D&O) coverage is intended to cover damages resulting from the "wrongful acts" of the directors and officers of your nonprofit. D&O liability coverage extends to types of claims that are not covered under the commercial general liability policy. Among the items a good directors and officers policy should include is broad coverage for all types of employment-related actions (Employment Practices Liability Insurance), including allegations of wrongful termination, harassment, discrimination and failure to hire.
Note: It’s important to realize that groundless lawsuits can’t be shrugged off. Defense cost alone could be a huge financial burden. D&O coverage includes defense cost.
Employee Benefits Liability
This coverage is usually purchased as an endorsement to the commercial general liability policy. It is intended to cover specified damages from your organization’s negligent handling of the administration of your employee benefits program.
Employee dishonesty coverage is intended to provide a source for recovery of funds, securities or property embezzled by employees or volunteers. This coverage may sometimes be purchased with property coverage or may be purchased separately as a fidelity bond.
Abuse and molestation Liability
Abuse and molestation liability provides defense and, if required, claim settlement funds for lawsuits involving abuse and molestation incidents. These claims can be a result of accusation from a client regarding an employee, volunteer, or contractor act of abuse. These claims are usually explicitly excluded from the general and professional liability policies. If you serve youth, seniors, developmentally disabled, or otherwise are charged with helping a disadvantaged population, you should consider this coverage.
Social Services Professional Liability
This coverage is often provided as an endorsement to the commercial general liability policy. It typically provides coverage for errors and omissions as a result of social services activities.
Provides another layer of liability limits in the event an underlying policy (business auto, etc) limit has been exhausted.
Insurance that provides compensation to a worker/employee who suffers a work-related injury. Important note: Volunteers are not usually included as worker/employee so there would be no coverage under this policy for volunteers who are injured during the course of their volunteer services. (see Volunteer/Participant Accident Insurance)
Volunteer/Participant Accident Insurance
Important coverage because most Workers Compensation policies exclude volunteers. Accident insurance provides a limited amount of coverage for injury to a student/volunteer/participant (depending on the specific coverage) on a no-fault basis.
Accident insurance typically pays regardless of fault, and may pay out prior to an individual’s health insurance or in excess of it, depending on the particular policy.