Nonprofits may not focus on revenue generation, but they have property, financial reserves, and employees to protect. Because not-for-profits differ from commercial enterprises on so many dimensions, they often need tailored business insurance and liability coverage policies. Below are a few types of insurance your nonprofit may need.

4 Types of Business Insurance for Nonprofits

1. Directors & Officers Liability

If a member of your leadership team is accused of wrongdoing, such as discrimination or sexual harassment, the resulting lawsuit could be disastrous. Directors and officers coverage pays settlements when courts rule in a plaintiff’s favor and cover the legal costs of defending against spurious accusations.

2. Workers’ Compensation Coverage

In most states, all businesses and nonprofits must have workers’ compensation insurance. Workers’ comp protects your human resources from financial hardship by covering the cost of medical care and missed wages if they suffer a workplace injury.

3. Auto Insurance

Any nonprofit with organization-owned vehicles needs commercial auto insurance to cover the cost of accidents and vehicle damage. However, even if your employees use their cars, not yours, you should have a policy that covers auto accidents that occur while they’re working.

4. Cybersecurity Liability

Many nonprofits don’t have the resources or expertise to protect their computer networks from every possible attack. As a consequence, they and their donor databases may be targeted by data thieves and hackers. Cybersecurity liability business insurance will protect you from lawsuits related to security breaches and pay to help rebuild damaged networks.

Since 1939, nonprofits throughout Cookeville, Livingston, Sparta, Monterey, Crossville, Fairfield Glade, Baxter, and the Upper Cumberland regions of Tennessee have relied on Wilmoth Insurance Agency Inc. to protect themselves from known and unknown risks. As an independent agency, they offer business insurance policies from a roster of the industry’s top carriers, ensuring they’ll have an option ideally suited to your needs. Visit their website for an overview of their business insurance expertise, get more tips on Facebook, or call (931) 526-6181 to request a free quote today.