Nonprofits typically operate on tight budgets. As a result, organizations of this type must have sufficient nonprofit liability insurance to protect them from possible financial losses.
Why Does Your Nonprofit Need Liability Coverage?
If your business has a structure similar to a corporation, you are subject to the same kinds of liability issues. Your employees or volunteers have the same protections under the law as for-profit companies. There are various types of legal claims that may arise for your operation. Whether you are at fault or not, the defense costs add up quickly.
Some of the most common lawsuits nonprofit operations experience include:
- Personal Injury Suits: If a person sustains bodily injuries or emotional damages due to intentional or accidental causes at your place of business, you may be liable for their medical expenses and legal fees.
- Contract Disagreements: It is vital to ensure your contracts are written down and legally binding. Disputes brought to court can be costly for your company.
- Employment Law Claims: These lawsuits may include claims of wrongful termination, discrimination or harassment.
What Types of Liability Insurance Do You Need?
A general liability policy safeguards your organization against risks associated with injuries and incidents that occur on your property. Professional liability coverage defends your company against liabilities stemming from management errors. Product liability policies protect you against potential risks associated with unsafe or defective products.
When you work with the public, your company is susceptible to various inherent risks. Safeguard your finances with nonprofit liability insurance.