Liability Insurance for Non Profit Organizations
Posted on: November 14, 2014 by Care Providers Insurance
One of the most common misconceptions about business insurance that your non profit clients often have is that they don’t need any type of executive liability insurance, such as Professional Liability or Directors and Officers coverage. Quite the contrary; these non profit organizations may often be in more need than their for-profit counterparts, given that they typically don’t have the same amount of disposable funds.
In the course of carrying out their missions, non profit organizations often provide solutions or offer advice and counsel. Sometimes these efforts may fail, either due to neglect or through no fault of their own. When this happens, though, that non profit is susceptible for legal claims from their clients or potential clients, and even volunteers.
Non profits exist in many various sectors; health care, human services, and fields that provide professional services and counseling. This makes them particularly vulnerable to risk and is absolutely a reason for them to obtain Professional Liability Insurance, also referred to as Errors and Omissions Insurance. Insurance experts feel that because non profit administrators work so intensively with their clients and provide services to some of the most vulnerable and most troubled in their communities, they are prone to more risks.
Professional Liability Insurance, or Errors and Omissions, provides financial protections against claims of failure or negligence with respect to service to customers. This is not, however, the only form of executive liability insurance for non profit organizations. Directors and Officers (D&O) Insurance protects non profit board members from being held personally liable for the actions of their employees or volunteers.
Understanding the basics of liability insurance for non profit organizations is essential for your clients, as well as for you. At Care Providers, we are committed to helping you place various coverages, including employment practices liability and more, for your nonprofit clients. Our mission is to provide coverages tailored to meet the unique needs of this market segment. Please contact us today to learn more at 1-800-970-9978.