telephone icon(410) 312-7800
mcfarlin logo website preheader
  • Main Menu
    • Home Page
    • Agent History
    • Claim Information
    • Important Links
    • Insurance Glossary
  • Commercial Insurance
    • Business & Commercial Insurance
    • Business Owners (BOP) Insurance
    • Contractors Insurance
    • Cyber Liability/Data Breach Insurance
    • Employment Practice Liability
    • General Liability Quote Form
    • Non Profit Insurance
    • Technology Insurance
    • Workers Compensation
  • Personal Insurance
    • Auto Insurance
    • Homeowners Insurance
    • Renters Insurance
    • Personal Umbrella Insurance
  • Bonding
    • Bonds
    • Bond Request Form
  • Life & Health
    • Life
    • Health
    • Disability
    • Long-Term Care
  • About Us
    • Agent History
    • Agency Leadership
    • Location
    • Associations
    • Contact Us
    • Privacy Policy
  • Blog
Business Personal Bonds Benefits
Home > Blog > How is Non-Profit Insurance Different than Business Insurance?
WEDNESDAY, APRIL 13, 2022

How is Non-Profit Insurance Different than Business Insurance?

Even if you’re providing free services to the needy, you’ll likely need nonprofit insurance. It’s important to maintain comprehensive liability coverage so that your non-profit is well-prepared to run smoothly in the event of a financial disaster. 


In many ways, non-profit insurance coverage is similar to comprehensive business insurance coverage. A strong non-profit insurance plan can boost an organization’s effectiveness. Without such protection, however, a non-profit can be at risk of failure. 


Your policy needs be flexible enough to protect volunteers and employees. It should also have several other components to ensure safety. Below are the biggest differing factors between non-profit insurance coverage and general business coverage. 


One: Independent Contractor Coverage 


The non-profit world isn’t usually governed by industry standards, commercial needs or an intensive employee payment process. You’ll likely conduct most paying work through contractors.a person shaking hands in a business meeting 


Business insurance is usually kind to the independent contractor. But a surprising amount of business coverage plans don’t cover independent workers. You’ll need to make sure you have considerable coverage to protect your independent contractors. 


Two: Higher Umbrella Coverage 


Umbrella insurance covers what the “loose ends” of a business insurance policy. Non-profits tend to expand beyond set-in-stone business dealings. They’re more likely to require coverage beyond general liability coverage. 


That isn’t to say crime insurance, auto insurance and property insurance — all staples of many business insurance policies — aren’t important. They are, but they’re less likely to cover a non-profit’s sometimes nebulous business needs. 


Three: Comprehensive Product Liability Coverage 


It isn’t uncommon for non-profits to sell goods to the public. If you’re raising funds by selling goods, you’ll likely need product liability insurance. More specifically, you’ll need comprehensive product liability coverage. 


Don’t plan around a single product line. Instead, go for a plan offering full-fledged consumer safety coverage options. You need a strong insurance policy to cover your nonprofit’s assets if a lawsuit or damages occur. 


Four: Officer and Director Insurance Coverage 



Your non-profit’s insurance coverage needs to expand well beyond typical business insurance. 


A non-profit is generally organized by officers and a board of directors. Many of these are volunteers. However, if someone sues your non-profit, they could name each person in the lawsuit. 


You should defend everyone involved in your establishment to ensure the payment of damages and watch your non-profit grow. 


Getting non-profit insurance can be tricky. We are happy to offer tips on choosing the coverage that is right for you. Call McFarlin Insurance Agency at (410) 312-7800 to request a free non-profit insurance quote. 
Posted 10:43 AM

Tags: non-profit, commercial, business, insurance, coverage
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010

  • insurance(68)
  • maryland(40)
  • coverage(31)
  • business(23)
  • tips(23)
  • business insurance(22)
  • commercial(21)
  • home insurance(16)
  • savings(15)
  • columbia(11)
  • contractors(11)
  • commercial insurance(9)
  • auto insurance(9)
  • general liability(8)
  • health insurance(8)
  • baltimore(7)
  • policy(6)
  • liability(6)
  • surety bonds(6)
  • maryland business insurance(6)
  • bonds(6)
  • life insurance(6)
  • flood insurance(4)
  • group health insurance(4)
  • auto(4)
  • safety(4)
  • d and o insurance(4)
  • renters insurance(4)
  • umbrella insurance(3)
  • md(3)
  • life(3)
  • compensation(3)
  • health(3)
  • general(3)
  • jewelry insurance(3)
  • workers(3)
  • homeowners(3)
  • dandoinsurance(2)
  • umbrella(2)
  • epli(2)
  • professional liability(2)
  • columbia auto insurance(2)
  • maryland insurance(2)
  • car(2)
  • payment bond(2)
  • small business(2)
  • workers compensation(2)
  • performance bond(2)
  • personal(2)
  • construction(2)

View Mobile Version
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Connect With Us: Social Social Social Social
Icon

Visit Us

Agency
McFarlin Insurance Agency, LLP
8325 Guilford Rd, Suite A
Columbia, MD 21046


Phone: (410) 312-7800
Fax: (410) 312-7808
Icon

Site Links

About Us
Business Insurance
Personal Insurance
Bonds
Benefits
Blog
Customer Service
Contact Us
Powered by Insurance Website Builder