Nonprofit business owners who employ volunteers have unique liability concerns that must be addressed.
Liability Coverage for Nonprofit Organizations
Directors and officers insurance for nonprofits is critical coverage for those organizations that employ a volunteer board of directors. This insurance protects your board from claims of mismanagement or wrongful acts. Individuals and the organization itself can be liable for expensive legal fees and settlements without proper coverage.
Other important liability considerations include:
- General Liability Insurance – This plan protects your business if a client is injured at your facility. It also protects your workers if they are responsible for an injury or property damage at the client’s home.
- Workers’ Compensation – Protect your workers from injuries while they are working on behalf of your company. This plan helps to cover their medical bills.
- Auto Liability Protection – If you employ volunteers to drive clients to appointments, you must purchase auto liability protection.
Safe Practices To Reduce Liability Risks
Implementing safe procedures will reduce your risks. If your volunteers pick up clients, make sure they are properly trained in lifting and moving disabled persons. Always conduct a driver’s record search on your drivers before allowing them to transport clients. Volunteers must have valid insurance on their car, and company cars must also be adequately covered.
Protect your volunteers and your nonprofit from unwanted legal claims.