Nonprofit companies are categorized by the Internal Revenue Service as 501(c)(3) organizations. These groups are tax-exempt and make no income. They may include foundations, funds, community chests, cooperating organizations, and also groups organized for religion, charity, scientific testing, amateur sports competitions, promotion of the arts, educational advancement, literary studies, and prevention of cruelty to children and animals. Insurance for non profits needs to offer financial protection for these various types of businesses.
General liability coverage for damage to property and injuries to members of the public and volunteers, together with business vehicle insurance to cover accidents and resulting injuries, are required by most nonprofit businesses. Even though many employees are volunteers, workers’ compensation might still be needed to cover the small salaried staff employed by the nonprofit. Nowadays nonprofits are facing less funding thanks to government budget cuts that have resulted from the downturn in the U.S. economy. Grants and other aid are also down for nonprofits. In spite of reduced funding, insurance for non profits is important for the successful operation of a nonprofit. An insurance company or agency that has trained staff able to offer risk management advice to nonprofit organizations is a benefit. Having the right risk management strategies and adequate insurance set up might help your group stay alive and operating for the betterment of our civilization.