Insurance for Non-Profit Businesses
1.8 million non-profit organizations exist across America, and most of them may eventually need some kind of insurance. There are many reasons for this, and with so many insurance options available, how would you know which you should get?
This article mentions some steps you might want to take before you choose a non-profit business insurance policy. As you read each section, consider your business and the areas you may be liable for, so you can make the right decision for your non-profit.
Researching Online
When you first start looking into policies, you should research the different aspects of them. Look through their terms to find ones that can match your needs and try to find insurance providers that can provide policies for the kind of work you do.
At the same time, you might want to read online reviews for the provider you are looking to take a policy with. This can give you an independent view of what your experience might be like. If it turns out one has specific facets you did not expect, check the terms and conditions to see how they could affect you.
Verify The Company's Credentials
You should ensure that the insurance provider you are considering has the appropriate licenses for your state and can provide the policies you are looking for. This can be important if you are dealing with a small-scale provider, or one who has only recently expanded to your area.
You should also find out if they have experience working with non-profit groups such as yourself. If they have limited experience, think about changing providers to one that has more experience. If they advertise as specializing in your particular business or industry and have testimonials, they are likely a good choice.
Asking for Quotes
When you seek out options for insurance policies, you need to get down to brass tacks. Comparing insurance costs could save you money, so you should do your due diligence here.
Think About Your Insurance Needs
Before you put all your information into a form to sign up for a non-profit business insurance provider, it can be important to have your ducks in a row. Think about what your specific needs are. For example:
Does your organization do a lot of work in a commercial space, and will you need insurance to cover more than one location?
Are you often using expensive equipment or machinery?
Write down the specifics of what your business is involved in and the main aspects which you may need insurance for. While an insurance provider can contact you with questions later, it can be a good idea to get the most important details out in the open as soon as possible.
Some insurance providers offer the ability for you to put this information into a signup form. So, this means you could get a quote quickly without needing to wait very long for an answer.
Read Over the Terms and Conditions
When you receive a quote, you should check the terms. You should ensure the quote matches your business needs and fits your requirements. Then, you can start to compare different policies in detail.
Examples of things you should look for include:
Hidden fees. Check for unexpected payments. Doing this can help prevent surprises further down the line.
You can also look into discounts or cost-saving options they might offer. For example, a quote might suggest that if you put in place specific business rules, such as health and safety policies, you can get a discount. While these are not always applicable or doable, some may lower the policy premium enough to be worth it.
At the same time, think about long-term costs. If you make a claim, is there anything you need to pay for before they cover the costs? How many claims do you expect to have during a given period, and can you afford them?
You should be able to work out the budget you would need for each policy and if you can afford it. This can allow you to make the best decision possible for your business.
Investigate the Coverage Options
As you look into the different needs you have, you might want to understand some of the policies and what differentiates them. Some of the most common policies include:
- Business Owners Policy
- Workers' Compensation policies
- Home based business insurance policies
While an insurance provider may have other names for these options, they often cover similar concepts. If you want to know more about the specifics of a policy and their terms, you may want to reach out to an insurance expert for more information.
Business Owners Policy
A Business Owners Policy, or a BOP, has multiple interconnected insurance policies. They allow businesses to help protect themselves against several risks in their day-to-day work. They often contain the following types of coverage:
General Liability Coverage
Business insurance for non-profits often includes some kind of general liability coverage. This can protect the company against common issues that might come up, including:
Injuries. This can include medical costs and injury claims for third parties, as well as legal costs and compensation related to such injuries.
Reputation harm. This might relate to legal and public relations costs, whether they are related to an advertising incident, or libel and slander.
Third-party property coverage. This could be damage your company does to anyone else's property.
Business Property Coverage
This can help protect your business assets from loss due to breakdown, fire, vandalism, or many other events. Bear in mind that you should check your provider's specific details, though, as the policy may limit the exact items it can cover.
Cyber-Risk Coverage
This type of policy can help protect your business, should a malicious cyber-attack cause a problem for you in terms of the data your company carries. This could be due to a computer virus, malware, a security breach, or other cyber issue.
If your company suffers a data breach or other cyber incident, it can help cover investigation costs and expenses to notify impacted individuals.
Understand Workers' Compensation
As accidents can occur anywhere, this insurance can offer coverage for many of the costs a company can accrue related to employee injuries or illnesses related to work.
It can help you resolve many of the issues you might encounter in such a situation, including:
- Paying missed wages
- Paying ill employees
- Paying rehabilitation costs
- Covering disability costs
- Offering compensation for medical expenses
If you do not have Workers' Comp, you may run the risk of severe reputational damage. Many states even demand it by law. So, check with insurance providers or your state government to help ensure your business is compliant.
Understand Home-Based Business Policies
While this coverage goes by many names, it is related to home-based businesses. A home-based business insurance policy typically handles the gap that a homeowners or renters policy might not cover when it comes to businesses operating in a residential space. A home-based business policy from PolicySweet® is known as HomeHQSM. It is an insurance bundle that includes the following coverages.
General Liability Coverage
This type of policy can help protect businesses against third-party injuries or legal issues your business may face. This type of policy is a common one offered by many insurance providers, though the details may be different per insurance provider.
Property Coverage
This can help protect your assets from damage. This may be damage caused by natural events such as earthquakes, wind, or fire.
Inventory Coverage
When you keep your inventory at home, it can be important to help protect it from damage. This coverage can help protect your business financially in the case of theft, destruction of property, or other covered events.
Investigate Non-Profit Business Insurance
With the above information, you should have a better understanding of non-profit business insurance. Still, to help save you the hassle of finding a policy, why not take a look at what we have to offer? There's a chance it could be exactly what you need.
We offer insurance coverage for small businesses across the United States. If you need help finding a policy, we can also discuss coverage options that may suit your unique needs. So, learn more about the coverage we offer in your area and get a quote here today.