What kind of insurance does your organization need?

Unexpected costs may leave your nonprofit in trouble. Purchasing insurance can be incredibly valuable, especially if emergencies arise. If you are in the market for investing in an insurance plan, it is critical to be aware of the plans and corresponding coverage options available to your organization.

Property insurance
In the case of a fire, storm, vandalism or earthquake, the space that your nonprofit owns or rents may suffer damage or even be destroyed. Nolo, a legal topics online publication, recommends property insurance to supplement repair costs in the event your property is damaged.

When agreeing on a property insurance plan, check that it will cover all items that your nonprofit values. For example, if you have any equipment, computers, monitors or other supplies, you will want to discuss coverage options for these items with your insurance provider.

General liability insurance
This type of insurance policy covers your nonprofit in the event of an injury. If donors, suppliers, volunteers or other associates are injured on your property, your organization may be responsible for covering  medical expenses.

Discuss your coverage and also consider holding safety seminars for your volunteers, employees and board members to proactively help cut down the risk of injury.

Automobile insurance
Your employees and volunteers may use vehicles owned by your nonprofit to complete tasks. If this is the case, you must have auto insurance. Some states require further coverage. Personal injury protection or uninsured or underinsured coverage may be beneficial plans to include and, in some instances, are required.

Implementing rules when operating a car, truck or van supplied by your nonprofit can help prevent incidents. Consider requiring vehicle operators to refrain from cellphone use while driving and limit distractions.

Other available coverage
There quite a few types of insurance your nonprofit should consider, according to The Nonprofit Times. For example, there is coverage available for special events, which also might include liquor liability. If your nonprofit hosts fundraising parties, this coverage could be especially useful for your organization.

Cyber liability is another type of insurance that might be beneficial if your nonprofit stores a great deal of valuable information in online databases. This can help if you lose digital assets or if data is compromised.

Discuss options with your insurance provider to help build optimal coverage for your unique needs.

Buying a coverage policy
You can help make the process run more smoothly by following a few tips, noted the Nonprofit Risk Management Center. For example, you will want to complete the entire application and attach all requested information to ensure that an accurate underwriting is completed.

Pay close attention to details and if you have any questions, do not hesitate to ask your insurance professional. Promptly respond to help make sure that the process goes as quickly as possible.

If you decide to negotiate terms, be respectful and prepare a presentation that outlines why alterations should be made to your policy. 

Insurance is your savior on a rainy day. Do not let your nonprofit go uncovered for anything. Speak with a professional and commit to a policy that is best for your nonprofit. 

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