Chapter 2: Understanding Nonprofit Insurance Coverages
Non-profit insurance can protect your organization from a variety of sudden, disastrous expenses, including…
- Lawyer’s fees.
- Lawsuit expenses.
- Directors / officers liability.
- Property damage and repairs.
When your organization is sued, it could face thousands of dollars in legal expenses, even if it’s not found liable for any damages. In fact, a dismissed claim can still run you $2,000 to $5,000 in attorney’s fees alone. (Read more about the staggering cost of lawsuits in the U.S. Chamber Institute of Legal Reform’s Tort Liability Costs for Small Businesses report .)
Even dismissed lawsuits can cost between $2,000 and $5,000 in legal defense fees.
As you know, nonprofits try to minimize their operating expenses in order to devote the majority of their resources to the services they offer. For most organizations, there’s no wiggle room for unexpected legal defense costs.
That’s where nonprofit insurance can help. With adequate coverage, you’ll have the funds for those sudden costs so you won’t have to cut back your services or shut your doors. Of course, each organization has different insurance needs, but the following policies tend to benefit most nonprofits:
In the next couple sections, we’ll explore how these policies protect your organization.
Next: Part 1: The Building Blocks of Your Nonprofit Insurance Plan