When an injured party sues a corporation, individual trustees are generally named in the suit as part of the group's governing body. Miscellaneous exposures are also faced by non-profits that are involved in special events, either as performances, training or exhibits that carry out charitable purposes or as fund raising events. Certain organizations, such as those involved in housing, environmental protection and child care, will face specific exposures because of the nature of their activities. And for those non-profits considering business ventures, those will present new risks to be assessed. Non-profits often purchase insurance to shield corporate assets and protect the people who are expending their energy, services and talents to further the group's mission.
Some government agencies require their contractors to carry a certain amount of liability coverage.
Your organization may have promised in its Certificate of Incorporation to indemnify board members. In all of these cases, a smart insurance buyer also needs to know not only the overall purpose for having a particular kind of insurance but also the liabilities or exposure the policies cover. The keystone of an organization's coverage is the corporate multi-peril or general liability policy. Many of these more specialized coverages can also be purchased as separate policies. The prudent non-profit manager will consider purchasing insurance to protect board and staff, indirectly protecting the corporation that might have to indemnify them.