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Are you wondering if non-profit liability insurance is worth the investment for your organization?

As the founder or manager of a non-profit, you know just how important it is to make sure your staff, sponsors, and event organizers are always safe and secure.

Unfortunately, accidents do happen.

But, even in the face of disaster, you still need to run your non-profit smoothly. This is where non-profit liability insurance comes into play. In this article, you’ll discover:

  • What general non-profit liability insurance is
  • Who benefits from the coverage
  • 5 big reasons why you should invest in it

Last but not least, you’ll also learn how to protect your non-profit with the perfect liability insurance plan.

Ready to get started? Let’s dive right in.

What is General Non-Profit Liability Insurance?

What is General Non-Profit Liability Insurance

As the name suggests, general non-profit liability insurance helps non-profit organizations protect themselves from costs incurred by lawsuits over common business risks and mistakes.

This type of plan is very useful for both big and small-scale non-profits that desire to cover themselves against legal liabilities such as:

  • Third-party property damage
  • Injury of staff or sponsors (in-house or at events)
  • Allegations of sexual abuse or negligence
  • Advertising injuries

Furthermore, general non-profit liability insurance can be used to defend nonprofits to ensure the organization doesn’t take any major financial hits.

Who Benefits from No-Profit Liability Insurance?

Who Benefits from General Liability Insurance for Nonprofits

To name just a few, some organizations that would benefit from this type of coverage include:

  • Charitable businesses
  • Churches and religious institutions
  • Goodwill industries
  • Animal shelters and rescues
  • Humane societies
  • Homeless shelters

These non-profit organizations can choose from many different types of liability insurance to protect their assets.

For instance, malpractice insurance will safeguard your organization if it fails to fulfill promises such as contractional obligational standards. On the other hand, directors’ and officers’ liability insurance keeps your board safe from allegations of nonprofit mismanagement.

So, why should you consider non-profit liability insurance for your non-profit?

5 Reasons Why You Need Non-Profit Liability Insurance

When it comes to fortifying your charitable business, you’ll want to go the extra mile to make sure everyone involved in the operation is taken care of properly… even when disaster strikes!

Keep reading to get the run-down on the 5 top reasons why your organization should have a no-nprofit liability insurance plan.

1. Avoid Organization Collapse

One of the reasons why non-profits fail is due to poor management or improper use of resources. When a charitable business receives funds, the hope is that the revenue would be used to fortify the organization so it can continue to follow its mission.

However, mistakes are made when steps aren’t taken to protect the business from potential catastrophes, such as property damage, bodily injury, and lawsuits.

Unfortunately, a single lawsuit can destroy an organization if it’s not handled properly. However, with general non-profit liability insurance on your side, you can have peace of mind that exuberant costs will be covered so your organization doesn’t crumble to pieces.

2. Protect Your Staff

Here’s a fact: Your team is the cornerstone of your organization. Without them, you would have a hard time achieving your vision.

So, when an employee gets hurt on-site or at a charitable event, it’s your duty to make sure their medical costs are covered.

Thankfully, non-profit liability insurance will cover hospital bills, settlements, and attorney’s fees. Some plans even offer advanced coverage for athletic activities. That way, you can protect your staff when they enter a highly active environment associated with your non-profit.

3. Cover Third-Party Property Damage

Nothing is worse than accidentally damaging the property of others. For non-profits, disaster may strike at a rented venue where your organization is hosting an event.

Here’s an example that is all too common for non-profit fundraisers:

You rent a venue for an evening soiree to raise money for your organization. You invite all of your top sponsors and include access to an open bar. As the night goes on, you notice that one of your attendees has had a few too many cocktails and ends up stumbling into an event sign near the presenter’s stage. The sign comes crashing down, knocking over valuable audio equipment on its way to the ground.

Next thing you know, you have to pay for thousands of dollars worth of speakers and screens, plus fees from the venue itself. Ouch!

Here’s the thing: If you have general non-profit liability insurance, you wouldn’t have to worry this mess. You would be covered!

4. Reduce Stress

We can all agree that anxiety surrounds an unprepared organization. Think about it, if you operate a non-profit that isn’t covered by liability insurance, you have to constantly stress about what you would do if a lawsuit hit your business.

For example, if someone enters your community center and trips on an unmarked uneven surface, then you might have to pay for their bodily injuries. They might also come at you with costly legal battles, what a headache!

And what’s worse? This could literally determine the fate of your establishment. However, when you’re covered by insurance, you can rest assured that these bills will be taken care of.

5. Better Safe Than Sorry

At the end of the day, it’s better to take action now to secure your charity’s future.

The average plan costs about $45 per month, which is totally worth the investment to avoid the thousands (if not tens of thousands) of dollars that a lenghty lawsuit would cost.

Even if your non-profit has never experienced litigation in the past, you never know what might happen in the future. Plus, as your organization grows and becomes more active, the risk of running into mayhem only increases.

Get covered now so you won’t feel regret later on!

Safeguard Your Business with CSIP

So, now that you know why non-profit liability insurance is so useful, you might be wondering where to go to get covered.

CSIP offers a variety of liability plans at amazing rates for non-profits like yours. Whether you manage a community center, homeless shelter, counseling center, or other charitable organization, we are here to protect you when disaster comes and alleviate your financial strain.

Connect with us to discover the perfect plan for your non-profit business!