Ag Against Hunger, Diabetes Hand Foundation, Berkeley Free Clinic, Santa Cruz Aids Project; all of which are Northern California based non-profit organizations dedicated to help better the lives of others. Though non-profits and 501c (3) do not incur profit in the same manner as for profit organizations, they still face a number of risks. Because these risks are so apparent, it’s important for Northern California based non-profit organizations to protect their philanthropic mission with insurance.
In virtually all non-profits, three risks occur more often than others—auto accidents, slips & falls and improper employment practices. According to Pamela Davis, president and CEO of the Nonprofits Insurance Alliance Group; auto related accidents, slips, trips and falls account for 90 percent of claims and improper employment practices account for the remaining 10 percent.
Each organization is different in philanthropy, size, and location; this means that each business requires an insurance program specifically tailored to their non-profit. But for the purposes of this post, lets outline the non-profit and 501c (3) insurance policies applicable to any and all of these Northern California based organizations.
The common factor between general liability, non-owned/hire auto insurance and directors and officers liability is that they address the aforementioned common risks.
General liability is often referred to as slip and fall insurance. It provides coverage in the event that someone is injured or their property is damaged while in your organization’s property (office, clinic, special events venue, etc.).
Non-owned and hired auto insurance protects staff or volunteers when they are involved in a car accident while completing tasks pertaining to the organization.
Given the number of improper employment practices (specially, wrongful termination) claims, directors & officers liability insurance is a must. The Nonprofits Insurance Alliance Group asserts that nearly 95 percent of claims against D&O policies are relative to harassment, discrimination and wrongful termination. Keep in mind, D&O policies differ with each insurance agency. So, before you purchase insurance coverage for your Northern California based non-profit, ask your insurance agent what your D&O policy entails.
Non-profit organizations experience many of the same property and liability risks as businesses, and they often have employees and volunteers who need to be protected as well. Cal-Nevada Insurance Agency serves nonprofits and 501c(3) groups in San Francisco and throughout the northern California, Arizona and Las Vegas, Nevada areas with risk advisory services and insurance targeted to their specific needs.
For further information or to schedule a meeting with an advisor, contact us at (866) 670-5948