Pearson & Company Insurance, Inc 601-482-6699
Get a Quote
Interested In
Zip Code
Get A Quote Quick Links Auto Insurance Home Insurance Church Insurance Business Insurance

Given the shoestring budget on which many nonprofits operate, a single large and unexpected expense could lead to financial ruin. So, getting the right insurance to guard against the biggest (or baddest) risks is a wise move for nonprofits (and other businesses). Here's a rundown of the types of insurance that may be best for your nonprofit.  Pearson & Company Insurance is located in Meridian, MS and can serve any nonprofit in Mississippi or Alabama. Please give us a call at (601) 482-6699 to talk about your nonprofit's goals, mission, and finances.


General Liability Insurance

A general liability policy insures your nonprofit organization against classic slip-and-fall scenarios. (It's sometimes also called a "commercial general liability" or "CGL" policy.) Your nonprofit will be covered for damages that it's ordered to pay to someone (such as a visitor, customer, supplier, or associate) who is injured on the organization's property. These kinds of policies don't apply to the nonprofit's employees, who are covered separately by workers' compensation insurance.


Property Insurance

Whether you own or rent the space your nonprofit occupies, consider what your organization might lose in the event of a fire, earthquake, vandalism, storm, or similar event. Then, buy property insurance that covers those risks, making sure it covers not only the building (if your organization owns it) but any:

•fixtures (such as lighting systems or carpeting)

•equipment and machinery

•office furniture

•computers and accessories (monitors, CD-ROM drives, modems, printers, and so forth), and

•inventory and supplies.

Most basic policies will cover these items -- but at what dollar amount? Make sure the policy covers the cost to actually replace the property, instead of paying its market value as a used good immediately before the damage.

Ask your agent or broker to carefully explain your deductible (how much your organization will be out of pocket before the insurance kicks in) and what types of losses or property damage will not be covered under the policy. For example, flood insurance is usually sold separately. And your organization may have to pay extra to have theft coverage included.


Running a nonprofit out of your home?

You may need to adjust your homeowners' or renters' insurance policy. Many exclude coverage of business-related claims, while others forbid business use of your home -- meaning that if you run a nonprofit there and the insurer finds out, your coverage could be limited or rendered void. It's best to be up-front about your intended activities and get the appropriate insurance coverage in advance.


Auto Insurance

If your staff or volunteers use any vehicles (including their own) for your nonprofit's activities, auto liability insurance is a must. In fact, your state may require you to purchase a minimum amount of coverage. The insurance will pay for injuries a driver causes to other people or property while carrying out your organization's business. Your state's law may also require additional auto insurance, including personal injury protection (PIP) and uninsured/underinsured motorist (UM/UIM) coverage.  Even if your non-profit doesn't own a vehicle, you still need coverage if you are running errands or making trips in your own vehicle or a volunteers vehicle.  This is called non-hired & hired auto coverage.


Product Liability Insurance

If your nonprofit sells products to the public -- for example, you raise funds by selling baked goods, or your artist-clients create and sell sculptures out of recycled products -- consider buying product liability insurance. It will protect your organization from lawsuits by customers claiming they were hurt by an unsafe or defective product you provided. For example, if a customer breaks a tooth on a walnut shell baked into your cookie or slices a hand on a sharp-edged sculpture, this insurance will cover the legal defense and a sizable portion of the damages.


Directors and Officers Insurance

Your nonprofit's board of directors and officers (many of whom are volunteers) could be personally named in a lawsuit against your nonprofit alleging fraud or financial mismanagement. For example, if a board member invests the nonprofit's assets unwisely and loses everything, a creditor might sue the nonprofit as well as its directors and officers. In such a case, you'd want directors and officers (D&O) insurance to cover the cost of defending the directors and officers and pay any resulting money damages.

As with any insurance coverage, it's important to understand what kind of claims are and aren't covered by a D&O policy. Typical exclusions include damages arising from criminal or fraudulent behavior and claims brought by one director against another. But make sure your policy doesn't exclude employment-related claims, which are the most common ones filed against directors and officers.


Professional Liability Insurance

Similar to D&O coverage, professional liability coverage (also sometimes called "errors and omissions" or "malpractice" insurance) protect against liabilities resulting from mismanagement of the organization, as well as workplace-related claims such as discrimination or sexual harassment. It covers not only directors and officers but also staff, volunteers, and the nonprofit organization itself.


Warning: Got Workers?

If your organization has employees, you'll need additional insurance. Both state and federal insurance requirements will apply, typically mandating that you pay for workers' compensation and unemployment insurance, and possibly for disability insurance as well.


Your nonprofit is unique- your insurance coverage should reflect that. Call Pearson & Company Insurance today at (601)482-6699 to schedule an appointment so we can get to know your organization and see how we can help.

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013

View Mobile Version
Get A Quote
Manage My Policy
Submit A Claim Pay Your BIll Customer Service
  Our Site Links

Home Page
Who We Are
Our Carriers
Map & Direction
Contact Us
Type of Insurance

Auto Insurance
Home Insurance
Church Insurance
Business Insurance
Motorcycle Insurance
Boat Insurance
Recreational Vehicle Insurance
Contact Info

Pearson & Company Insurance, Inc.
2210 13th Street
Meridian, MS 39301

Phone: 601-482-6699
Fax: 601-482-1526
FacebookTwitterLinkedInGoogle+RSS FeedYouTube

            Get Quotes from the Best Companies
American Modern
Condon Skelly