What Coverages Do Nonprofit Policies Come With?
Because nonprofit organizations have varied coverage needs, there isn’t one set of coverages that every nonprofit policy comes with. Instead, there’s an array of coverage options that many policies make available as either standard or optional protections. Some of the more commonly selected coverages are:
Do Nonprofits Need Employment Practices Liability Coverage?
Many nonprofit organizations should at least consider including employment practices liability coverage in their insurance policy. This coverage normally protects against claims that accuse an organization of illegal and/or improper employment practices, such as prohibited discriminatory practices, and its protections aren’t necessarily limited to employees. Some policies’ coverage may cover valid claims brought by either employers or volunteers.
Nonprofits that would like to learn more about this coverage and how it may help protect against claims brought by volunteers should speak with a knowledgeable insurance agent who specializes in nonprofit policies. A specialized agent will be able to explain what sorts of incidents this coverage protects against, and they can check how a specific policy’s coverage would apply to volunteering situations.
Do Nonprofit Policies Come With Workers Compensation Coverage?
Nonprofits in Massachusetts that employ workers typically need workers compensation coverage as a safeguard against job-related injuries or illnesses that those workers might sustain. Workers compensation, however, is frequently purchased as a stand-alone policy that’s separate from a nonprofit policy. An insurance agent who helps with nonprofit policies can likely help with securing a workers compensation policy as well.
How Much Do Nonprofit Policies Cost?
Insurance companies consider many factors when setting nonprofit policies’ premiums, so policies’ costs vary. Along with the coverages and limits selected by an organization, some of the other items that influence rates include:
- Where a nonprofit’s headquarters are located
- What physical assets a nonprofit insures
- What types of services a nonprofit provides
- What events a nonprofit puts on
- Whether a nonprofit has filed claims in the recent past
Despite the variance in cost, it’s almost always more financially prudent to carry insurance than risk experiencing a major disaster or lawsuit without protection in place.