Insurance

As with any business, nonprofit organizations need to purchase insurance to protect their assets.  The following are a few types of insurance that nonprofits should have.  If you’re not sure if your organization has these policies in place, you should contact your insurance provider to make sure you are protected. 

General liability insurance.  All nonprofits should have general liability insurance to cover claims due to property damage and bodily injury occurring in the course of operations.

Property insurance.  If your organization has a building or other equipment, property insurance covers damages to property owned by the nonprofit due to claims such as fire and theft. 

Workers’ compensation insurance.  Workers’ comp provides coverage for employees that get injured on the job and is required by law.

Directors and officers insurance.  D&O insurance provides coverage to protect board members and officers from claims which may arise from their decisions and actions taken within the scope of their regular duties.

Employee dishonesty insurance.  Protects an employer from a loss as a result of fraudulent acts conducted by employees, such as theft.

Cyber insurance.  With the increased risk associated with technology, cyber insurance protects against risks related to information technology, such as unauthorized access to an organization’s electronic data. 

Posted by: Carrie Minnich, CPA