General Liability Coverage for Non-Profit Businesses

Non-profit business

Running a non-profit isn't all that different from running a for-profit business. As the owner of a non-profit, you could encounter situations for which you're legally liable. This is why it can be wise for non-profits to take out insurance policies.

There are many different types of insurance policies for non-profit organizations to consider. However, one of the most common is general liability coverage.

Wondering what general liability insurance is? Looking to learn more about non-profit general liability insurance, in general? Here's what you might want to know.

What Is General Liability Insurance?

We'll begin by discussing what general liability insurance is. This is a form of insurance coverage that can help protect your organization financially in the event that it's deemed liable for third-party claims.

There are a number of instances in which general liability insurance can kick in. They include but aren't limited to the following:

When Someone Is Injured on Your Property

Does your non-profit have a physical location where business is conducted? If so, and if someone is injured on that property, your non-profit organization could be held legally responsible.

For instance, let's say that you mop the floor and forget to put a "wet floor" sign down. Someone comes into your business and slips, resulting in a broken hip. You could be sued by this person and may have to defend yourself in a court of law.

Fortunately, your general liability insurance policy can help pay for your legal expenses, not to mention medical bills that the injured individual has received. As such, you might not have to pay the financial liability out of your organization's pocket.

When One of Your Employees Accidentally Injures Someone While Working

Another instance in which general liability insurance can kick in is when one of your employees injures someone accidentally while on the job. For instance, if one of your employees were to trip and knock someone over while visiting a client outside your facility, your general liability insurance coverage could help protect you financially in the event of related legal proceedings.

In other words, the injury doesn't need to occur on your premises as long as the employee is at the location for business matters. General liability insurance can cover injuries at other locations where your company is conducting work.

When You Do Damage to Someone Else's Property

Let's say that your non-profit organization provides a specific service to individuals. If you accidentally damage their property while handling it for business purposes, it could be covered by general liability coverage. You may not have to pay for this damage out-of-pocket. Your policy can help cover the cost.

When You're Accused of Libel/Slander

Your organization may have made a public claim that offended another organization or individual. This organization or individual might claim libel or slander. This could lead to a court case.

If you have general liability insurance, you could be financially covered for the court case. Your insurance policy can help cover your legal fees.

When You Commit an Advertising Injury

As a non-profit, you're bound to employ advertisements from time to time. In the course of employing these advertisements, you might cause an advertising injury. It can cover a range of things, including slander, libel, reputational harm, violation of privacy, and copyright infringement.

These accidents can be (and often are) caused by accident. Fortunately, they can be covered by general liability coverage. So, if you're ever sued for committing an advertising injury, just know that your general liability insurance policy can help save you substantial amounts of money.

In What Situations Does General Liability Insurance Not Apply?

While general liability insurance can cover many situations, it doesn't cover everything. Some of the situations in which general liability insurance doesn't apply include:

When One of Your Employees Is Injured

Was one of your employees injured on the job? If so, general liability insurance will not cover their injuries. If you want employee injuries to be covered, you may want to consider purchasing Workers’ Compensation coverage.

When Damage Is Done to Your Property

Seeing as general liability insurance covers you in the event that you cause damage to another person's property, you might think that it can cover you in the event of your damaged property as well. Unfortunately, it doesn't.

If you want damage to your property to be covered, you may want to take out a commercial property insurance policy. This policy can help protect the property that exists within your commercial building.

What Kinds of Non-Profits Should Consider General Liability Insurance?

Now, you might be wondering which types of businesses should consider general liability insurance. While not all non-profits are legally required to obtain general liability insurance, many non-profits can benefit from having it. Therefore, your non-profit should think about purchasing it.

What happens if you don't purchase general liability insurance? In an ideal world, nothing. Everything goes swimmingly and you can save your organization the cost of monthly premiums.

However, you could stand to lose substantial amounts of money. Why? Because, at some point, your organization may be held legally liable for a third-party claim. And when you're held legally liable for an accident, you're likely going to have to pay a good amount of money in damages to rectify the situation.

Your general liability insurance can help cover the large majority of these damages. If you do not have a policy, however, you might have to pay the claims out of your own bank account.

In the most minor of situations, this can set your non-profit organization back monetarily. In the most extreme situations, it could destroy your non-profit organization entirely.

So, in essence, it can be important to purchase general liability coverage as a means of keeping your business afloat.

Need Non-Profit General Liability Insurance?

Is your non-profit in need of insurance? Searching for non-profit general liability coverage, specifically? If so, look no further than PolicySweet®.

We offer a range of insurance policies for non-profits. We can provide general liability as well as additional insurance policies that could help your non-profit business. You can purchase general liability along with business property and cyber-risk coverage together in the form of a BOP (Business Owners Policy).

Contact us now to start a quote!


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