Author: Adrianne DuMond
Executive Coaches of Orange County
In these difficult economic times it is natural to ask “do we need so much insurance coverage – or coverage at all?”. But non-profits need to remember that they service clients and provide services to some of the most vulnerable and the most troubled in our communities. Therefore it is important to obtain the best insurance advice for the nature of the service and for the kind of people involved in the delivery of that service. This includes employees, volunteers, as well as the benefactor that tripped on the antique rug at the last fundraiser.
Every organization needs at least three types of insurance:
- General liability – for the ‘slip and fall’ category, where someone is hurt or their property is damaged in your office.
- Non-owned/hired auto insurance in case an employee or volunteer is involved in an auto accident and their personal insurance is not adequate.
- Organizations that have any employees – even one – need to have directors and officers liability insurance – with employment practices coverage.
There are other kinds of insurance that should be considered, depending on the kinds of clients being serviced. It is a good idea to engage an insurance broker who acts as the mediator between the agency and the insurance company. They can also assess the risk exposure and needs of a particular agency. Insurance brokers routinely help with the following:
- The types of coverage needed ( social services professional insurance? or sexual abuse coverage?)
- Coverage limits ( should liability coverage be $1 million or $5 million)
- Services needed (better personnel policies, or training for volunteer drivers?)
There are several resources available for more specific information. For articles about non profit insurance refer to www.blueavocado.org/content/board-members-guide-nonprofit-insurance. There are also at least two insurance companies that service non profits specifically: Nonprofits’ Insurance Alliance of California, http://www.niac.org and Alliance for Nonprofit Insurance: Risk Retention Group http://www.ani-rrg.org.