Types of Insurance for your nonprofit

<p class="MsoNormal">When I started working for Aspiration I went through a process of making sure that we had the necessary types of insurance needed to protect us as a nonprofit organization.&nbsp; It is interesting how many people I talk to who are interested in forming a nonprofit who doesn&rsquo;t think they &ldquo;need&rdquo; insurance or it isn&rsquo;t a priority to get insurance. &nbsp;</p>  <p class="MsoNormal">I always knew insurance was important; however I didn't realize how important having insurance is until I attended the Nonprofit Risk Management and Finance Conference in San Francisco, September 2005, and was shocked to hear statistics presented from the Insurance Alliance of California about the number of law suites against nonprofit organizations! </p>  <p class="MsoAutoSig">A nonprofit organization should have insurance to protect them from this liability. The most common types of insurance for nonprofits are Liability Insurance and Directors and Officers Insurance. Also, if a nonprofit is doing any type of consulting work you should look into getting Errors and Omissions Insurance. Here are more detailed explanations of each type of insurance.</p>  <p class="MsoNormal"><em>Liability Insurance:</em>&nbsp; Provides protection for your organization in case there are injuries or damages to people or your office. I make sure that my general liability insurance includes non-hired automobile coverage, which covers any employee or volunteer of the organization while they are renting a car (while representing the organization). Also, I make sure that my insurance broker sends me Special Event forms so I can add my organization&rsquo;s special event location to my liability insurance. Many venues require you to insure their location for your special event. </p>    <p class="MsoNormal"><em>Director</em><em>s and Officers:</em> Provides Protection for directors against personal liability if there is a negligent action or performance by a director or officer.</p>      <p class="MsoNormal"><em>Errors and Omissions:</em> Provides protection for errors or omissions when conducting professional services (consulting).&nbsp;</p>  <p class="MsoNormal">There are many insurance brokers who provide insurance to nonprofits. Specifically in California Nonprofit Insurance Alliance of California (NIAC) <a href="http://www.niac.org/">http://www.niac.org</a> &nbsp;provides a insurance broker referral service. </p>