Non-Profit Insurance

When you’re running a not for profit organisation, you are probably setting up a lot of events, either to raise money or raise awareness of some issue or another. Typically, a lot of people are involved, most of them volunteers. What can go wrong? That is for you to anticipate and handle before it happens.

Every organisation, regardless of type or mission statement, needs to be covered by insurance. You would think that a not for profit company would have less to worry about, but it is not so. In fact, a lot of these kinds of organisations work with volunteers, and no one wants to risk them being injured or worse. That’s why all non-profits need insurance, and there is a special kind for this particular category.

There are several types of organisations that fall under not for profit insurance, including:

• Community interest companies
• Charities
• Social enterprises
• Not for profit organisations

Each and every one of this kind of entity has some risks factors, most of them represented by the public. Especially when it comes to activists for certain causes, the risk is increased by the chance of protesters to threaten members, physically assault them, commit theft, commit arson or launch other types of attacks. A not for profit company has to protect itself and its members, so insurance is an absolute necessity.

Let’s talk about what the conditions are and what you are eligible to get, as a not for profit organisation that is covered by this type of insurance.

• Event coverage, including for festivals, fund-raising events, music festivals, live drama, functions, dance festivals, entertainment, parades, etc. A premium may be added to some events, but not for others.
• Coverage of up to $20,000,000.
• Member coverage for things like personal injury claims during an event organised by the not for profit organisation.
• Volunteer coverage for things like personal injury claims during an event organised by the not for profit organisation.

Additional coverage is available optionally for other types of claims, but be aware that there are also additional premiums for them.

As a not for profit organisation, it is especially important that you protect the entity, as well as the people contributing to the organisation’s efforts from liability. Since the mission statement of the group is to raise money for certain causes or take humanitarian actions, liability costs can take a significant toll on the charitable entity. No not for profit organisation can afford to open themselves up to such a risk, which is why it is so important to find the appropriate kind of insurance and coverage.

This way, in the eventuality that the organisation does get sued, insurance is able to cover the legal expenses. Anything less can mean bankruptcy and the dissolution of an organisation that aims to do good. You can never be too careful when it comes to liability.

If running any of the following non-profit businesses, you need to apply for non-profit insurance urgently:

• Association Liability
• Church / Chapel
• Community