Nonprofit Insurance in Vermont
What is Nonprofit Insurance?
Nonprofit organizations may be committed to doing good, but charitable endeavors aren’t without potential risks. Organizations can be named in liability lawsuits and suffer property losses, just as for-profit businesses can. Nonprofit insurance policies help Vermont nonprofits protect themselves from many of the risks they’re exposed to.
Nonprofit insurance is a specialized form of commercial insurance that’s crafted with nonprofit organizations in mind. Being a type of commercial insurance doesn’t mean these policies are meant for for-profit businesses. Instead, it simply differentiates these policies from personal insurance policies that are written for individuals.
What Nonprofit Organizations in Vermont Need a Nonprofit Policy?
Most nonprofit organizations that are registered as a 501(c)3 in Vermont should consider nonprofit liability insurance coverage and related insurance coverages. Few organizations are immune from risk, and most organizations don’t have the resources to recover from a major loss or lawsuit without suffering a substantial loss.
The following are just a few examples of specific organizations that might need nonprofit liability insurance coverage and similar protections:
- Religious institutions
- Social advocacy groups
- Environmental groups
- Educational programs
- Arts and culture programs
- Animal charities
Still many more groups that are registered as legal nonprofit entities may benefit from having coverage.
What Coverages Are Available Through Nonprofit Policies?
In order to meet nonprofits’ diverse risk mitigation needs, insurance companies frequently offer many different coverages within nonprofit policies. Some coverages that a particular policy, depending on its terms and conditions, may make available include:
- Commercial Property Insurance, which might protect organization-owned buildings and equipment
- Nonprofit Liability Insurance, which might protect against certain liability lawsuits an organization could face
- Directors and Officers Insurance, which might protect leaders of an organization against certain claims and lawsuits
- Special Events Insurance, which might provide additional protection for specific events like fundraisers and celebrations
- Umbrella Insurance, which might give additional liability coverage that supplements other protections
Along with these, organizations may also want cyber liability coverage, business income coverage, employment practices liability coverage and additional protections. Nonprofits that own vehicles usually need to carry commercial auto coverage for them.
With so many coverages to consider, selecting the most appropriate ones can seem like a daunting process. An insurance agent who specializes in nonprofit liability insurance and related coverages, however, can guide organizations through the process so that they end up with the protections that are right for their situation.
Should Nonprofit Organizations Have Liquor Liability Coverage for Events?
Liquor liability coverage generally extends protection to a range of alcohol-induced events, which are incidents that most other coverages exclude. For this reason, liquor liability is usually extremely important anytime adult beverages are offered at official events. Most nonprofits that provide alcoholic beverages at events should consider carrying this coverage, and some may even be required to.
Moreover, nonprofits normally should still get this coverage even if they aren’t the company that’s actually selling and serving adult beverages. Someone who’s harmed in an alcohol-induced incident may try to sue every organization involved in the event, which can include the organization that sold the alcohol, the organization that served the alcohol the organization that held the event.
As important as it is, nonprofits shouldn’t let cost alone keep them from getting liquor liability coverage if it’s needed or recommended. Organizations that are concerned about how much they’ll have to pay for this coverage should relay their concerns to an insurance agent. When coverage is only needed for a specific event, agents can often find a policy that provides protection for only the days of the event and, as a result, has highly affordable premiums.
How Can Nonprofits in Vermont Get Quotes for Nonprofit Insurance?
For help insuring a nonprofit organization in Vermont, contact the independent insurance agents at T.S. Peck Insurance. Our agents have the expertise necessary to help you determine what coverages your organization needs, and they’re independent so they can show your organization nonprofit insurance options from multiple insurers in the state.