Every day, nonprofit organizations change the world through fundraising and community outreach, and nonprofits’ impact affects life tremendously.
But that does not mean not-for-profits are immune to circumstances that can affect their mission in a negative light.
That is why not-for-profits must choose the right insurance coverage for themselves and their operations, to keep the not-for-profit’s mission moving and not slow down when disaster hits.
Coverages Every Nonprofit in
New Jersey Should Consider
Nonprofit Insurance Coverage
Directors and Officers Liability and Employers’ Practices Liability Insurance
This type of nonprofit insurance coverage is intended to protect executive board members and organizational leaders. It protects the organization from wrongful acts lawsuits, which include everything from fraud to wrongful termination.
It is exciting news, until Sarah is called into the office of her department director and told she is being let go, and that this Monday will be her last. She sues the nonprofit, specifically the director who told her she was being let go. That is exactly the kind of wrongful termination claim that directors and officers liability and employers’ practices liability insurance is designed to address.
General Liability Insurance
General liability, which includes professional liability, employee benefits liability, and sexual abuse misconduct liability, is intended to protect the organization at special events, cover employee benefits, and address any lawsuits that may arise from incidents and occurrences happening on the property.
Workers’ Compensation
Workers’ compensation covers employees, board members, and volunteers. The coverage is intended to cover any medical expenses, disability, or death benefits to injured workers.
Commercial Property Insurance
Whether it is a hurricane or simply a pipe burst, a not-for-profit will be covered in such situations with commercial property insurance. For nonprofit organizations in New Jersey, property risks are real and unpredictable.
The old appliance creates a spark, and the spark creates a fire. The fire is contained on time, but the kitchen has considerable fire damage. Commercial property insurance is what covers that kind of loss for nonprofits in New Jersey.
Commercial Auto Liability
Commercial auto liability includes physical damage, hired, and non-owned coverage. Whether it is simply running errands or transporting clients to appointments, or a volunteer driving around in a personal vehicle, it is important to make sure the not-for-profit is protected with the right adequate insurance coverage.
Accidents happen all the time and they are so hard to predict, so it is very important to make sure there are the right limits, deductibles, and coverage to ensure the organization is protected as well.
A scenario nonprofit organizations in New Jersey should consider: a nonprofit provides transportation for single mothers and their children. Every morning after the commute is finished and the van is emptied out, it is only ten minutes later that another driver accidentally runs a red light and hits the company vehicle. Commercial auto liability is the coverage that addresses that situation.
Cyber Liability Insurance
Nowadays, a nonprofit’s mission also includes keeping the data of donors, clients, and employees safe. That is why it is imperative to have cyber liability, which protects organizations from network breaches, malicious software, hardware theft, and even credit monitoring expenses.
For nonprofits operating in New Jersey, a scenario like this is increasingly common: it is Friday morning, and a co-worker bursts in apologizing. It seems he clicked on an email he thought was from the CEO and was immediately brought to a web page saying confidential information has been compromised. Cyber liability insurance is what covers that type of breach and protects the organization and the people it serves.
Media Liability and Copyright Coverage
When a nonprofit hires a freelance designer to create a new logo, everyone loves it and decides to run with it, printing the logo across hundreds of marketing materials. A few weeks later, the nonprofit receives a call, being sued for copyright infringement on behalf of the designer.
What Determines Coverage for Nonprofit Insurance in New Jersey
It is important to note that what is covered on these types of insurance mainly depends on how the policy is written. If there are any questions on the type of coverage in place, contacting an insurance provider will clarify any questions and make sure adequate coverage is in place for the organization and its not-for-profit operations.
Frequently Asked Questions
What types of nonprofit insurance in New Jersey are most important?
The coverages a not-for-profit should consider include directors and officers liability, employers’ practices liability, general liability, workers’ compensation, commercial property, commercial auto liability, and cyber liability. Not-for-profits must choose the right insurance coverage for themselves and their operations.
What does directors’ and officers’ liability insurance cover for nonprofits?
This coverage is intended to protect executive board members and leaders of the organization. It protects the organization from wrongful acts lawsuits, which include everything from fraud to wrongful termination.
Why do nonprofits in New Jersey need cyber liability insurance?
Nowadays, nonprofits’ missions also include keeping the data of donors, clients, and employees safe. That is why it is imperative to have cyber liability, which protects organizations from network breaches, malicious software, hardware theft, and even credit monitoring expenses.
Does commercial auto insurance cover volunteers driving personal vehicles?
Whether it is simply running errands or transporting clients to appointments or a volunteer driving around in a personal vehicle, it is important to make sure the not-for-profit is protected with the right adequate insurance coverage.
How do nonprofits know if they have the right coverage in place?
It is important to note that what is covered on these types of insurance mainly depends on how the policy is written. If there are any questions on the type of coverage in place, contacting an insurance provider will clarify any questions and make sure adequate coverage is in place.
Conclusion
Nonprofit organizations in New Jersey change the world every day through fundraising and community outreach, but not-for-profits are not immune to circumstances that can affect their mission in a negative way.
From wrongful termination claims and slip and fall incidents to cyber breaches and vehicle accidents, having the right nonprofit insurance in New Jersey keeps the not-for-profit’s mission moving and does not slow down when disaster hits.
Making sure the right limits, deductibles, and coverage are in place ensures the organization is protected, as well as the communities it serves across New Jersey.
