By Dawn M. Fernandez, CAS, CLP
Non-profit organizations play a vital role in our communities, providing essential services and support. To protect their operations and assets, it’s essential to have the right insurance coverage in place. This blog post will delve into three essential coverages for non-profit organizations: general liability, commercial auto, and excess liability (umbrella) insurance.
General Liability Insurance
General liability insurance protects your non-profit organization from claims of bodily injury or property damage caused by your operations. Key considerations include:
- Recommended limits: For most non-profits, a minimum of $1 million per occurrence and a $3 million aggregate limit is recommended. However, larger organizations may require higher limits.
- Sublimits: Consider sublimits for specific types of claims, such as personal injury, advertising injury, or environmental pollution.
- Deductibles: A deductible is the amount you pay out of pocket before your insurance coverage kicks in. Higher deductibles can lower your premiums, but you’ll need to be prepared to cover the deductible in case of a claim.
Your general liability insurance can protect your non-profit organization from various types of claims related to your operations. These claims might include bodily injuries to third parties, damage to their property, or claims related to advertising injury or environmental pollution. For example, if someone is injured on your property or your organization is accused of infringing on a copyright, general liability insurance can help cover the associated costs.
Commercial Auto Insurance
If your non-profit organization operates vehicles, commercial auto insurance is essential. Key considerations include:
- Vehicle types: The type of vehicles you operate will determine the specific coverage you need.
- Driver qualifications: Ensure that your drivers meet the necessary qualifications and have the appropriate licenses.
- Coverage limits: Choose limits that adequately protect your organization in case of an accident.
- Hired Non-Owned Auto coverage: Consider adding this coverage if your organization hires or borrows vehicles from others.
Your commercial auto insurance can protect your non-profit organization from various types of claims arising from accidents involving your vehicles. These claims might include bodily injuries to third parties or damage to their property. Additionally, your insurance can provide coverage for accidents caused by uninsured or underinsured drivers, ensuring that you’re protected even in situations where the other party doesn’t have adequate insurance.
Excess Liability (Umbrella) Insurance
Excess liability insurance, also known as umbrella insurance, provides additional coverage beyond your primary general liability and commercial auto policies. Key considerations include:
- Coverage limits: Choose a high limit to ensure adequate protection in case of a catastrophic claim.
- Drop-down coverage: Ensure that your umbrella policy includes drop-down coverage, which extends coverage to underlying policies that have been exhausted.
- Deductibles: Higher deductibles can lower your premiums, but you’ll need to be prepared to cover the deductible in case of a claim.
Excess liability (umbrella) insurance can provide additional protection for your non-profit organization in case of catastrophic events. This coverage can help cover the costs of large settlements or judgments that exceed your primary policy limits. Additionally, it can help cover the legal fees associated with defending your organization in lawsuits.
By understanding these essential coverages and carefully considering your organization’s specific needs, you can ensure that your non-profit is adequately protected from unexpected risks. It’s recommended to work with a qualified insurance agent to develop a customized insurance plan that meets your organization’s unique requirements.
Dawn Fernandez has a strong foundation in technology and education, and has dedicated her career to empowering individuals and organizations. Her expertise in adult training, coupled with her understanding of legal structures, has equipped her to provide tailored solutions and exceptional support to non-profit agencies. As a Senior Account Manager specializing in insurance coverages for these organizations, she is committed to helping them navigate the complexities of the insurance landscape.
In addition to her professional role, she is passionate about sharing knowledge and insights through content creation. Her blog provides valuable information on insurance topics, empowering individuals and businesses to make informed decisions.