Many local citizens give back to their communities by volunteering their time to nonprofit organizations. But these individuals may be putting themselves at risk of being part of lawsuits against the very organizations that they’re trying to help.

“General liability insurance protects your organization from lawsuits involving bodily injury and property damage,” says Brad Steinbach, Mayville Insurance Agency. “But you may not be covered in the event of an abuse or molestation claim, if the space you are renting is damaged, if there is a fire or if one of your volunteers is injured.”

When you review your policy with your professional independent agent, be sure to check whether you are covered in the following areas:

• Abuse/Molestation Coverage: If your organization works with children, the elderly or the infirm, this coverage is especially important.

• Volunteer Coverage: Paid employees of your organization are covered within the definition of ‘who is an insured,’ but volunteers typically have to depend on their own resources or their homeowner’s insurance for protection. Also, check with your professional independent agent to determine if and when a volunteer might be considered an employee under your workers compensation insurance.

• Damage to rented space: If there is damage to the area you are renting to run your organization, are you liable or is the landlord?

• Business Income Coverage: Even nonprofits have revenues to protect, such as operating expenses and payroll.

• Professional Liability Insurance: This is especially important if your organization is in the health-care or human services field where there is a risk of malpractice.

• Auto Insurance: Are your employees or volunteers covered if they are driving an organization owned vehicle or even their own vehicle on organization business?

“If your nonprofit has a board of directors, you might also want to add a directors and officers (D&O) policy,” says Steinbach. “D&O insurance provides financial protection for the directors and officers on the board in the event they are sued in conjunction with the performance of their duties as they relate to the organization. Your professional independent agent can determine whether or not this type of coverage is appropriate for your organization.”

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