Running a Not-For-Profit confers a significantly different set of responsibilities, regulatory standards, and tax obligations than a run-of-the-mill for-profit business. However, there is one rather vital, overlapping subject – insurance coverage. Unfortunately, being a nonprofit does not waive liability for employee accidents (i.e. “Slip and Fall insurance” or car accidents), wrongful termination or harassment suits, or protect directors and officers from liability. This begs the question: What is the right kind of insurance for nonprofit business owners?
“Slip and Fall”
When thinking of reasons to obtain insurance coverage “slip and fall” policies are typically what immediately come to mind. These types of policies cover a variety of unpredictable, accidental situations that employees and volunteers find themselves involved in. Although not individually costly, these accidents comprise 90% of the claims made against nonprofit organizations and their insurance policies. Due to the little time spent in litigation, however, these claims are significantly less costly than other more intensively litigated claims.
D&O Liability
Claims related to directors and officers liability are far more costly despite being less common than general accident/injury claims. Despite representing only 10% of all claims, these comprise 35% of claims dollars paid due to intensive litigation periods and court costs. Common types of wrongful termination cases are:
- Sexual Harassment
- Racial Discrimination
- Improper Employee Classification
- Breach of Contract
- Mishandling of Donations
- Improper Board Elections
How Ramey King Insurance Can Help
Given the frequency and costs associated with the two aforementioned areas of liability and insurance, it is highly recommended that you contact us or visit our Not-For-Profit webpage on providing you with a quote or commercial insurance package tailored to the needs of your nonprofit. Our friendly insurance agents are ready to help you today!
