Workers’ Compensation Insurance
for Nonprofit Organizations
Behind every successful nonprofit organization or social service business, there’s a hardworking, committed team. As the owner of a charitable organization, you depend on your employees and volunteers to help you pursue your vision and make your community a better place. Whether you own a daycare whose employees tend to children while their parents are at work or you’re the owner of your city’s horticulture society and your team leads garden tours, you know it takes help of all kinds to grow your organization.
Depending on your line of work, your staff may be exposed to serious risks while they lend a helping hand. Accidents are unpredictable and can happen even if you take all the necessary precautions to reduce their occurrence. Without adequate Workers’ Compensation coverage, your charity or social services organization would have to pay out of pocket for lawsuits or medical bills if an employee or volunteer experiences a work-related injury or ailment. Even if your nonprofit organization is largely volunteer-based, you’ll still need to take risk management precautions to ensure their safety while they perform work duties.
One way of ensuring your employees are taken care of in the event of an accident is to carry Workers’ Compensation Insurance. This coverage protects your business when an employee is injured at work or suffers a work-related illness, and it compensates you for the cost of medical expenses, foregone wages, and court costs if a staff member sues your business. Most states require that any business must have Workers’ Compensation Insurance, though laws vary depending on where you operate. Read on to discover how Workman’s Compensation protects your nonprofit organization.
Workers’ Comp Protects
Workers’ Compensation Insurance: Protecting Nonprofit Staff and Volunteers
Depending on where your organization’s expertise lies, your employees may have a demanding job. For example, if your employees and volunteers work at your animal shelter, they could be bitten and face serious bodily injuries. Meanwhile, caregivers at a group home may suffer back problems from assisting and lifting residents. Even in a seemingly innocuous office setting, employees could develop repetitive motion injuries (e.g. carpal tunnel syndrome), especially if they work at the computer most of the day.
Workers’ Compensation Insurance steps in to address these risks that fall outside your realm of control. Your policy can cover immediate medical attention (e.g. a trip to the ER), as well as other costs associated with the injury, such as medication or the wages your employee missed while they were recovering.
Most Workers’ Comp policies also include Employer’s Practices Liability Insurance (EPLI), which ensures your nonprofit or social services business will have financial backing if your employee sues your organization, alleging their injury or illness was due to your failure to provide a safe work environment. This portion of your policy can be a life-saver, as it can provide coverage for attorney’s fees, court-mandated settlements or judgments, witness fees, and bond premiums.
Finding an adequate Workers’ Compensation policy means knowing your state’s laws for the insurance. In general, most states require businesses with employees — nonprofit or otherwise — to carry this coverage. Our Nonprofit Specialist insurance agents can help you discern which policy will meet your state’s regulations.
Workers’ Compensation Benefits
Nonprofit Organizations and Social Services Business: How Workers’ Compensation Insurance Benefits You
As a nonprofit startup or small social services business, you can rely on Workers’ Compensation coverage as a safety net in times of crisis. Workman’s Comp or Workers’ Liability Insurance, as the coverage is often called, helps your business by kicking in to cover the medical bills, foregone income, and potential court costs that you may face due to an employee’s on-the-job injury or ailment. Medical costs and legal fees can be enough to bankrupt most small businesses, which is why this protection is especially lucrative for a nonprofit organization whose funds are already tight.
If you’re ready to incorporate Workers’ Comp into your risk management plan, you can receive a quote from our top-rated insurance providers in minutes. Fill out insureon’s quick online application to get going!
Workers’ Comp Key Details
Key Details About Workers’ Compensation for Nonprofits and Social Service Providers
As you begin to learn more about Workers’ Comp for nonprofit organizations, you may wonder what a reliable and adequate policy entails. Here are a few considerations that will help you find a policy that meets your needs.
Nonprofit and Social Service Businesses: Know Your State’s Laws.
If your nonprofit organization or social services business has W2 employees, your state probably requires Workers’ Comp Insurance coverage for them. Some states even mandate you cover part-time employees, contractors, and volunteers. In order to comply with your state’s laws, be sure you understand what your location requires before you purchase a policy. Remember you can always speak to an insurance agent to learn more about your state’s laws and for help finding a policy that satisfies them.
Charitable Organization Proprietors May Be Able to Exclude Themselves from Workers’ Comp Coverage.
Nonprofit or social services business owners may be allowed to exclude themselves from Workers’ Comp coverage, depending on state laws. Excluding yourself from coverage could save you some money, but on the other hand, some client contracts may require that you carry it. When in doubt, talk to your insurance agent.
Risk Management Tips
Risk Management Tips for Nonprofit and Social Services Organizations
Workers’ Compensation coverage is just one part of the risk management puzzle. Here are other ways you can protect your employees and volunteers while they carry out their work:
- Hold regular training sessions with your staff about proper lifting techniques that do not compromise their backs. Depending on their line of work, first aid training can also be a life-saving, injury-reducing skill.
- Invest in ergonomic office furniture and equipment to reduce the risk of repetitive motion injuries.
- Give your employees and volunteers protective equipment that is appropriate for the work they do. For example, someone who handles stray animals should have access to bite-proof gloves, while an employee who prepares food for your soup kitchen will need potholders to prevent burns.
Contact an insureon agent today for help finding a Workers’ Comp policy that protects your volunteers and employees in case an accident occurs.