What types of insurance should my organization consider?

You need to know where your organization is exposed to risks.  Is it from staff, events, theft, fire, natural disasters, work-place safety, vehicles, or computer/web site security? Depending on the type of events or services your organization engages, you may need all, some, or other types of insurance that are not listed.   Evaluate your organizations needs and review the list below to determine the type of insurance your organization might consider.  

• Liability - to protect the nonprofit for bodily injury, property damage (sometimes), natural disaster, fire, safety in the workplace, possibly terrorism. The big issues to be sure are covered here or under another policy include wrongful employment or termination, discrimination, employee benefits, sexual harassment, child molesting and failure to be accountable (filing tax forms, keeping track of donations, etc.).
• Non-owned Vehicle - to protect the organization if a volunteer or employee is in an accident when using a personal or rented vehicle while performing work for the group. This may be in the liability insurance but check to be sure. The organization should have a program written policy about what insurance coverage volunteers have on their vehicles if the vehicles are used in the process of work, delivering meals, taking clients to shop for example. The organization could also be sued if there is an accident.
• Bonding or fidelity - to protect the organization from theft of funds, forgery, robbery, burglary, and potential illegal use of equipment including computers.
• Directors and Officers (D&O) - to cover the board and certain employees for the defense and loss for failure to implement appropriate policies, controls and procedures to prevent theft, forgery, and illegal use of equipment including computers. It may be linked to the bonding or fiduciary insurance on items not covered there. This insurance can be very limited on who is insured. Check to be sure it covers wrongful employment or termination which may not be in the general liability package. 
• Professional Liability/Errors and Omissions (E&O) - professional liability policies generally protect the individual practitioner and any professional assistants under the practitioner's supervision and control as well as the organization. Some policies may also extend coverage to a funding source or sponsor (e.g., hospital). However, these people and organizations are typically only covered for the rendering of professional services rather than general business activities.
• Workers Compensation - this insurance may be required by state law for employees who are injured on the job. Some states allow volunteers to be covered; volunteers, however, do not lose wages.
• Volunteer or student liability - to cover injuries to volunteers and students; this is not a workers compensation insurance.
• Temporary liability - to cover certain events such as a health fair or community event that may be required by the sponsors.

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