You already know that running a business is hard, but for many it’s a labor of love. That’s why it’s important to protect what you love with the right insurance, and these are the three reasons you should consider a business owners policy.
You Have Inventory or Assets
Whether you manufacture a product or sell a service, the things your business owns need coverage in the event of a loss. Your assets can include things like equipment, raw materials or product inventory, but they also include intangibles like customer data and other digital assets.
You Have a Physical Location
Your office, workshop, warehouse, and any other physical location are vulnerable to natural and other disasters. If you have a place where you conduct your work, a business owners policy can provide coverage for repairs to the structure to get you up and running as soon as possible.
You Are Vulnerable to Lawsuits
Another component of the policy is liability coverage that shields your business from lawsuits. Legal action can arise from many aspects of your business. A slip and fall at a physical location can result in a customer’s injury, but so can a faulty product or a data breach at your company. Liability insurance often provides defense costs as well as indemnification for the injured party.
Building a business is hard work. Protecting your business doesn’t have to be.
Nonprofit organizations contribute a lot to the communities around them. While their intention is not to make money, they are still just as vulnerable to lawsuits as any other company. People still make mistakes and people can still file claims against the organization.
Do Nonprofits Need Management Liability?
Often, in nonprofit organizations, the management team does not have the same level of experience as management teams in for-profit organizations. With less experience, there are more liabilities to take into consideration. Whenever there is an allegation against the director or office, it can financially devastate the organization. You need management liability so that you can pay the legal fees to fight an allegation and any damages you may have to pay.
What Are Common Claims Against Nonprofits?
In every organization, where there is a responsibility there is also a liability. This is one of the major similarities between for-profit organizations and non-profit organizations. Nonprofit organizations are not immune to claims or complaints. Some of the more common claims include:
- Contract disputes
- Harassment allegations
- Wrongful termination
- Wage disputes
Nonprofits can be the targets of lawsuits for numerous reasons.
Nonprofit organizations are critical to a lot of charities. Nonprofits help build communities, provide assistance and support. No matter the kind of work that you’re doing, you need to keep your organization protected with nonprofit liability insurance.