Workers’ Compensation Insurance for Nonprofit Organizations
Take Care of Employees at Your Nonprofit
Workers’ compensation insurance for nonprofit organizations is an important policy for any social service to carry. The insurance offers coverage for medical costs and lost wages incurred by employees that have sustained work-related injuries.
For example, if machinery malfunctions and hurts a worker, workers’ comp insurance will pay for the medical care of the injury.
Why Should You Carry Workers’ Compensation Insurance?
As a nonprofit business owner, it is your responsibility to protect employees when disaster strikes. Every charitable institution should offer its staff workers’ comp insurance. Here’s why.
Cover Injured Employees
Emergency situations can happen to any business, including nonprofits! Your organization is responsible for medical injuries sustained by on-site employees. Workers’ compensation insurance for nonprofit organizations will cover the costs of medical care and lost wages while the injured employee is unable to work.
Protect Nonprofit Business Owners
Not only will the insurance policy finance injured employees, but it will also safeguard the employer from being sued. Your nonprofit will be protected from potentially catastrophic litigation fees.
What Does It Cover?
A single injury can damage your organization’s reputation and ruin your mission. Depending on the severity of the injury and the amount of risk management offered prior to the situation, medical care and litigation fees can be so costly that your nonprofit will have to cease operations altogether!
However, with workers’ comp insurance on board, it will pay for the medical care of your employees and protect your organization’s name.
For employees, it covers:
Immediate medical costs (ex. ambulance ride, ER visit, stitches, casts, crutches)
Physician consultation services
Nurse management services (ex. life care planning nurses)
For employers, it covers:
Are Nonprofits Legally Required to Offer Workers’ Comp?
In most states, workers’ compensation insurance for nonprofit organizations is required. Depending on the state you operate in and the size of your organization, you might face major fines or even criminal charges if you don’t cover your employees.
In general, if your organization employs 3 or more workers, then you will most likely need to carry a policy.
Check out the state-by-state comparison of workers’ compensation laws here.
How Much Does It Cost?
The overall cost of your insurance policy will depend on the size of your business, your payroll, your industry’s work requirements (classification rate), and your claims history. Typically, the premium is based on every $100 of your organization’s payroll.
Calculate Workers’ Comp Insurance for Nonprofit Organizations
A quick way to calculate your policy is to use this formula:
Classification Rate x Claims History Rate x (Payroll / 100) = Premium
Want to know exactly how much your policy will cost? Click here to get a quote.
Is There a Way to Mitigate Risk & Lower Costs?
Yes, there is! If you take steps to manage risk and prevent dangerous situations, you will see less accidents and keep claim history rates low.
Some ways to mitigate risk include:
Post warning signs and labels on any machinery or high-risk areas
Give clear instruction and guidance for all organizational activities
Provide protective gear (hi-vis safety vests, helmets, etc.)
Remove any tripping hazards or uneven walkways
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Protect Your Employees, Safeguard Your Nonprofit
Workers’ compensation insurance for nonprofit organizations is a great way to secure the future of your business.
At CSIP, we believe that your coverage should match your organization’s specific needs. That’s why we never take a “one size fits all” approach to insurance.
Give us a call or fill out the form below for your personalized quote!
It’s Time to Protect Your Nonprofit
Your coverage should match your organization’s specific needs. That’s why we never take a “one size fits all” approach to insurance.
Give us a call or fill out the form below for your personalized quote and see how much you can save!
Get a Quote
Your nonprofit matters to us. Let us safeguard your organization when an emergency strikes.