General Liability Insurance
for Nonprofit Organizations
Nonprofit and social services strive to make the world a better place. Whether your business provides shelter for homeless animals or offers after-school programs for at-risk youths, your business serves a purpose beyond the bottom line. Yet when accidents arise, your business needs a plan of action so it can continue its mission. After all, a lawsuit can be enough to bankrupt even the best-run nonprofit organization.
Many nonprofits choose General Liability Insurance to protect their business in case an unexpected accident occurs and a liability lawsuit ensues. If you work with clients for fundraisers or special events, this coverage can meet certain contract stipulations they might have. It also protects your organization if it’s found liable for a third party’s property damage or bodily injuries.
Because even small incidents can result in costly lawsuits, General Liability is a foundational policy for any business. For more details about GLI and how this coverage benefits your nonprofit or social services business, keep reading.
General Liability Protects
General Liability Insurance: Protection for Nonprofit and Social Services Organizations
Nonprofit organizations are active businesses. From traveling to spread their message to working regularly with other companies, people, and volunteers, your business is a beacon across communities. However, it’s this level of involvement and interaction that opens your business to risks. If, for example, a child in your daycare center is injured while in your care, your company could be sued for medical expenses. A visitor who walks through your business’s doors, trips over the welcome mat, and breaks a bone could also sue your business. Given today’s dependence on the court system to settle disputes, General Liability is a necessity for the success of any business that regularly works with other people.
General Liability Insurance covers damage to property or injury to people. Your policy covers medical expenses, attorney’s fees, and settlements or judgments if your business is found liable for another’s injury, illness, or damaged property. Your policy also protects your nonprofit business from claims brought against your business due to your employees’ or volunteers’ actions. Additionally, your coverage may also extend to cover events that happen outside your office premises, such as fundraisers.
General Liability Key Details
General Liability Insurance for Nonprofit and Social Services Businesses: Key Details
As you shop around for a policy that addresses the unique risks your nonprofit organization may face, remember that your insureon agent can help you create a custom policy. If you’re new to the world of business insurance, General Liability is an excellent foundation for your business protection plan, as it protects your business from bodily injury claims, property damage claims, and personal or advertising injury claims (e.g., slander, libel, and copyright infringement). Read on to learn more about these areas of coverage.
Bodily Injury Claims
Your risk exposure depends on the kind of services your business offers. However, General Liability Insurance is a policy that can protect your business no matter where your expertise lies. Because accidents can happen all the time — even when you take safety precautions — your company can only stand to benefit from the bodily claims portion of your GLI coverage. If an unexpected injury happens to a third party on your business premises, your business could be sued for medical expenses and more. When that happens, your GLI can cover legal funds, including lawyer fees, settlements or judgments, witness costs, medical expenses, and more, up to your policy limits. Even if it is a meritless lawsuit, your General Liability policy can cover the costs of defending your nonprofit in court — saving your business undue financial hardship.
In the unfortunate event that someone’s injury or illness results in death, your General Liability policy can also pay for medical costs, funeral expenses, and court-awarded compensation. Your own employees, however, are not covered by this policy. You will need to have a Workers’ Compensation Insurance policy in force to account for the cost of injuries and illnesses sustained by your employees or volunteers.
Property Damage Claims
Your nonprofit or social services business may have to handle a third party’s property, and if something should happen to damage it, you could be responsible for the cost of it out of pocket. From computers to personal belongings, such as purses, coats, or toys, the property damage coverage your General Liability Insurance provides can protect others’ property and assets while they are in your custody. If a third party sues your business because of its role in losing or damaging their property, your General Liability coverage would kick in to pay for the costs of a covered claim, up to your policy limits.
Personal and Advertising Injury Claims
Most nonprofit organizations use some kind of advertising to raise awareness about their cause and their campaigns. However, if your advertising or promotional materials allegedly infringe on another company’s brand or cause non-physical damages, your business could be sued. General Liability also accounts for these claims, offering coverage for copyright and brand infringement, as well as charges of libel or slander.
Safeguard Your Nonprofit
Safeguard Your Nonprofit or Social Services Business
Our nonprofit business insurance experts are ready to help you build a plan that keeps your risk exposures in check so you can focus on more important things: helping others. If you’re ready to get started, complete insureon’s easy online application, and you may be able to begin coverage in as little as 24 hours!