Whether you have a profitable business or a not-for-profit business, things can go wrong! It is important to have insurance that covers yourself and your staff. Running a charity or not-for-profit business is no different from any other business when it comes to planning for the future. For example, having a broker that can help you choose the correct not for profit public liability insurance option is vital to ensure you are covered against as many of the risks as possible. We review this type of insurance to help you make smart choices going forward.
What is Public Liability Insurance?
Public liability forms part of the law of tort which is focused on civil harms. Public liability cases usually occur when an applicant sues the owner for damages or injury due to negligence. These claims are usually successful when it can be proved that the owner breached their duty of care.
Failure to protect your not-for-profit organisation against injury cases, property damage, or allegations can have a major financial impact on your business, not to mention damage to your reputation.
In some cases, access to government grants may require proof that you have adequate insurance coverage for your activities. Therefore, there are multiple reasons for putting time into getting your insurance sorted.
What Does Public Liability Insurance Cover?
Public liability insurance refers to claims that make you legally liable for a third party’s suffering because of interacting with your business. Each policy differs from the next, but the standard coverage includes accidental death, damage to property, or bodily injury.
Additional cover includes but is not limited to, legal defense costs, defective workmanship, or wrongful arrest and defamation. Other options for cover can include cyber liability as well as a protection again sexual abuse, which is becoming increasingly difficult to obtain.
Understanding the Wording in Insurance Policies
Undoubtedly, not-for-profit businesses need liability insurance, and failure to choose the right coverage and the right policies places you at unnecessary risk. Insurance documents are often written in legal language, which makes it hard for the ordinary person to understand. It is therefore important to carefully study these documents with the help of a licensed insurance agent.
You need to know what is covered, and more importantly, what is not covered by your policy. The definition of an insured, in some policies, is someone who was, is, or becomes a trustee, director, or volunteer of a not-for-profit organization.
Although some board members believe their personal home insurance covers them as board members, the reality is that many insurance policies do not. In addition, not all board members are homeowners or have home insurance, which makes it vital to review the charity’s insurance cover from time to time, for everyone’s benefit.
The Benefits of Liability Insurance
You already know the importance of protecting your company against the unexpected. However, you also need to familiarise yourself with the benefits of having the correct cover. Below are the top 5 benefits of having liability insurance.
The Possibility of Larger Contracts
Many firms require you to have insurance coverage before closing a deal. Having your policy in place already puts you one step ahead of the competition and can help you acquire large contracts.
Protection Against Employee Actions
While not all states require you to have a general liability policy, adding that separate policy called personal liability coverage, is always a good idea. All business owners try to keep the best staff and keep them safe. However, you always have that possibility of incidents with injury or property damage, or perhaps slander. Having coverage against these instances gives you peace of mind.
Protection Against Injury Claims
If your line of work requires you to regularly meet clients face to face, regardless of the location, it automatically increases the chances of injury claims. If you have adequate coverage against injury claims, you don’t have to fear such claims and can meet your clients with confidence, knowing that your insurance company has you covered.
Protection Against Data Breaches
Cyber liability insurance is an excellent option to protect you again cyber hackers and ensure the safety of your customers’ and employees’ data. Many policies include electronic data liability options, which is an effective way to keep yourself protected in a hacking situation, or software failure.
Advertising and Personal Injury Liability
Not all damage in the business world is physical. Offenses by your company or its employees are also aspects you need to consider when choosing your insurance policy. These include slander or copyright infringement. Copyright infringement often happens accidentally with advertisements where you may be wrongfully accused of stealing someone’s material.
There are many more benefits to having liability insurance. It is vital to choose the correct policy with the help of a certified insurance broker, to ensure you have optimal coverage.
Conclusion
Non-profits and small businesses form a vital part of our society and financing is one of their biggest hurdles. Fortunately, several business lending options are available to help them off the ground. Still, running a business or charity comes with great risks. The appropriate coverage is vital to ensure you are protecting yourself, your business, and your staff adequately.
If you don’t have coverage yet, or your insurance broker has never addressed all the risks with you, it would be viable to review with a reputable broker and ensure you have optimal coverage.
