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Standard Coverage for NPO’s

Commercial general liability (CGL) insurance is essential for any business, especially for any business or organization that regularly associates with the general public, on- or off-premises. CGL insurance helps protect your non-profit from lawsuits related to third-party bodily injury or property damage. This can be as simple as a slip, trip, or fall in your office, or serious injury or death caused by your organization.

If such an incident occurs, your CGL policy helps pay for medical expenses, costs to repair or replace damaged property, attorney fees, court costs, and any settlements or judgments that you must pay. CGL insurance also covers certain personal injury claims (slander and libel) and advertising liability claims. Many small non-profits may not have a lot of business property. But if you have office space, office equipment, furniture, computers, and other electronics, you need business property insurance to help protect your NPO in the event of a fire, smoke damage, theft, vandalism, and certain weather events.

If you own your building, your commercial property policy also covers damage to the building. Your property policy may also include business interruption coverage, which provides income replacement and reimburses you for certain ongoing expenses (salaries, rent) if you must close or relocate temporarily after a covered loss (e.g., a fire).

Data Breach

Nonprofit organizations like yours often store information about employees, donors, and clients, including Social Security and credit/debit card numbers. Data Breach Coverage helps pay the costs of notifying impacted individuals such as customers and employees, managing public relations, good faith advertising, and more if personally identifiable information is lost or stolen.

Employee Accidents and Injuries

Workers’ compensation insurance helps protect your employees and your business from the costs of workplace accidents and injuries.

Kansas requires workers’ compensation insurance for most employers—see rules here. Those statutes determine the amount of benefits an injured employee is entitled to, what types of injuries are covered, and how medical care will be delivered. In general, workers’ compensation insurance covers the costs of medical care for the injured worker, as well as income replacement if they cannot return to work for a while. Workers’ compensation insurance may also provide death benefits if a worker is killed at your facility.

Protection For Board Members

The directors and officers who serve your NPO must maintain the organization’s financial stability and provide the appropriate resources and environment in order for it to flourish. But nearly any decision that your board makes can trigger a lawsuit, which can hurt the NPO and threaten the personal assets of the directors and officers. All of this calls for another form of non-profit liability insurance.

Commercial Vehicle Damage and Liability

Commercial auto insurance typically covers cars, trucks, trailers, vans and other vehicles designed for use on public roads. Only a business auto policy can help provide protection for vehicles being driven for business purposes.

You can customize your policy to cover:

• Vehicles that your public business owns

• Vehicles that your public business owns, leases, or hires

• All vehicles that are used for business purposes, including those that the business does not own, lease or hire (e.g., personal vehicles that are driven for business purposes)

You can list each vehicle on your policy and carry different coverage for each depending on the vehicle’s characteristics and the coverage you need for it.

Coverage For Special Events

If your policy does not include special events, you need special event insurance, which is extra coverage for a one-time event or a series of events, depending on your needs. These policies often include liquor liability coverage, which helps protect you in the event that there is an alcohol-related injury or property damage.