Enscoe Long specializes in providing nonprofits with comprehensive insurance coverage. In fact, as of 2021, the Enscoe Long team manages insurance policies for more than 200 nonprofit agencies.
Often understaffed with limited resources, charity groups and nonprofits don’t necessarily have the time or the staff in place to research and develop a robust (yet cost effective) insurance strategy and plan.
And because this is Enscoe Long’s area of expertise, we are launching a blog series on the best way for nonprofits to navigate the often complex and daunting task of acquiring and managing insurance coverage.
So, if you’re a nonprofit looking for insurance, where do you begin? We will start with general liability insurance. What is it and how can it protect your nonprofit?
General liability insurance protects your nonprofit against assertions that someone suffered bodily injury (such as a traditional slip and fall scenario), property damage or various kinds of personal injury, which occurred on your property.
General liability insurance is rated differently depending on the best way to measure your nonprofit’s risk. Square footage, receipts, payroll and the number of employees or participants may be used in determining a price.
Tip 1: No matter how the coverage is rated, it is important to get quotes for at least $1,000,000 for each occurrence and $2,000,000 for policy aggregate. Higher limits may be available and affordable, and you should ask your Enscoe Long insurance agent to explore this.
The average price of a standard $1,000,000/$2,000,000 general liability insurance policy for small nonprofit organizations ranges from $27 to $59 per month based on location, size, payroll, sales and experience.
Tip 2: Every nonprofit needs a general liability policy. Also, any vendors or contractors you hire should provide evidence of current coverage for general liability (and for workers’ compensation). Don’t let them begin work until proof of coverage has been provided.
Please keep in mind that the general liability policy provides no protection against allegations of an error or omission, with respect to your professional services. Over the years, the definition of “professional” has changed and expanded greatly. Many nonprofit organizations that engage in counseling, vocational training and other kinds of instruction have a professional liability exposure. Professional liability insurance coverage is available. Policies are not standard. These policies are written specifically for each organization’s particular risk. Enscoe Long can help your nonprofit choose a professional liability product, which is right for your organization.
So, what about nonprofit volunteers? How are they covered?
Volunteers are often the lifeblood of any nonprofit. Does your nonprofit need to carry liability insurance for volunteers as well?
A broadly written general liability policy includes coverage for bodily injury, property damage or personal injury by volunteers. However, many nonprofit organizations choose to insure their volunteers separately, to protect the organization’s own available limits of liability and its claims experience, if a volunteer creates a claim. This is a specific insurance coverage strategy, which requires a more detailed explanation. Ask your Enscoe Long insurance agent for context and clarification.
Click here for part 2 in this series on insurance for nonprofits – focusing on property insurance
Click here for part 3 in this series on insurance for nonprofits – focusing on specialized insurance products.
To connect with an Enscoe Long insurance agent, please click here to send us an email today!