There are various business types, and they all contribute to the economy. Almost everyone has had a couple of business ideas pop into their head. Following up with a business idea requires determination, and not everyone can start and manage a business. If you have a business or a part-owned one, you should know that you are among the chosen few. However, owning a business comes with great responsibility, since you have to ensure that your business is up and running while getting profits and avoiding great losses.
Businesses, whether big or small, require insurance policies. What is the essence of insurance policies, you might ask? Insurance policies help reduce the financial weight on your shoulders as a business owner. Suppose your business faces a serious problem and you don’t have any insurance policy. You will most likely experience a wipeout of all business assets. Losing business assets is something business owners should avoid at all costs, especially if it’s a nonprofit organization. Nonprofits don’t earn any profits for their owners. The following are the insurance policies a nonprofit organization should strive to have:
- General liability insurance
General liability insurance covers claims against bodily injury whenever anyone suffers an injury. It also covers advertising injury when there is slander or copyright infringement due to advertising activities. This insurance policy also covers personal injury and when someone else property is damaged due to your business’s activity. This insurance policy is common among all businesses since it protects businesses against common scenarios that will cost your business some expenses.
- Health insurance
Health is an essential factor in everyone’s lives, thus the need for a health insurance policy in your nonprofit organization. Health insurance policies assist you, your employees, and their dependents to cover any health bills. While searching for a nonprofit liability insurance package, please ensure that you get one that includes a health insurance policy. However, you should note that there are excluded health insurance clauses, such as cosmetic surgery.
- Product liability insurance
When purchasing an insurance package for your nonprofit organization, you should consider including a product liability insurance policy. This policy will help you cater to any financial losses if the product your organization sells causes injury or harm. This product liability insurance policy is a must, especially if your organization produces, distributes, and sells products at both wholesale and retail prices.
- Directors’ and officers’ liability insurance
In the corporate world, lawsuits are common, and like every other corporate agent, the directors and officers who work under NGOs are also at risk of lawsuits. Directors and officers can face lawsuits due to negligence of duties or committing unlawful acts. A strong directors’ and officers’ insurance policy covers accusations in which mental health was affected and discrimination when hiring or promoting volunteers.
Insurance agencies offer their services, so you have to be keen when choosing one to avoid future consequences. If you own a nonprofit organization and are having a hard time picking the essential nonprofit liability insurance policies for your company, you should start with the ones mentioned above.