What Is Non-Profit Insurance
Non-profit insurance is any insurance policy purchased to protect a non-profit. A wide variety of different insurance products fall under the umbrella of non-profit insurance; each non-profit has its own unique insurance needs.
Generally, non-profits will bundle a variety of commercial insurance policies together; this allows them to customize their insurance to suit their particular needs.
What Are the Most Common Types of Non-Profit Insurance?
Essential coverage for non-profits
These coverages are the most common for non-profits; they offer broad protections for a number of potential risks:
- Commercial general liability (CGL): Commercial general liability insurance covers you for liability claims stemming from the activities conducted by your non-profit. This means that your non-profit is protected if you’re sued for an accident that caused damage to someone’s property or injury to a person.
- Professional liability insurance: This protects non-profits that offer various types of advice and support. There’s professional liability insurance for medical professionals (malpractice insurance), lawyers, accountants, and similar professionals (errors and omissions insurance), as well as insurance for executive committees and boards of directors (directors and officers insurance).
- Commercial property insurance: You can protect equipment, electronics, and the space you own or rent with commercial property insurance; these policies can be tailored to your needs, and typically respond to fires, vandalism, theft, and most other sources of property damage and loss.
- Vehicle insurance: As with all vehicles, it’s mandatory for any vehicle owned or operated by your non-profit to be insured.
Additional coverages for your unique needs
- Abuse and sexual misconduct liability insurance: This coverage protects employees and volunteers by paying out defence costs and settlement fees if they are sued for alleged sexual, physical, or mental harassment or abuse.
- Cyber liability insurance: Cyber liability insurance protects you in the event of a data breach or another cyber event that exposes the data of the people who use your non-profit’s services. These policies can help pay legal fees and damages. It can also help restore your IT systems and pay other costs associated with a cyber breach.
- Event liability insurance: Non-profits may run galas, barbecues, and other events to raise money, increase awareness, or give back to their communities. Event liability insurance can protect you from accidents causing injuries or damages during those events and can even give you liquor liability protection.
Do Non-Profits Need Insurance?
Non-profit insurance is not mandatory in the Northwest Territories or in Canada at large—but we highly recommend purchasing it. Nonprofit law in Canada is a complex topic, and non-profits can be found liable for a number of different accidents. Liability insurance will protect you from unexpected losses. Property insurance is essential for non-profits, too; without it, a catastrophic loss of property can lead to the charity shutting down completely.
Conclusion
Non-profit insurance is highly customizable; the key is finding insurance providers that offer all of the coverage you need. The brokers at Nation North can help you determine which coverages are right for your non-profit. From there, we’ll sort through policies offered by dozens of different insurers to find the perfect policies for you.
Looking for an insurance broker in Yellowknife to help you find the perfect coverage for your non-profit? Call Nation North today!