Private contractors and contracting businesses are required to carry general liability insurance, regardless of the trade or level of skill. However, not all liability insurance policies are right for you or your company. When selecting a liability insurance policy, consider the size and scope of the projects you normally work on. If you primarily deal with small interior renovation projects, for example, your liability insurance needs are much lower than if you were to regularly work on high-value contracts.
Watch this video for more information on liability insurance for contractors and contracting businesses. The most important thing to remember is to work with an insurance agent who can understand your specific needs to recommend adequate liability insurance. Whether you operate a non-profit or a private company, the right insurance provider in New York City can make all the difference when it comes to the financial success of your organization.
Running a business is a complicated affair; running a non-profit organization, even more so. In addition to performing all of your normal daily functions, you and your executive colleagues have to constantly be wary of legal action. To protect yourself and your organization from litigation, consider purchasing directors and officers (D&O) insurance from a company that specializes in insurance coverage for non-profits in New York City . Here’s what you need to know about D&O insurance and why it’s important to protect yourself and your fellow officers.
The Basics of D&O Insurance
D&O insurance is a special type of liability insurance meant to protect directors, officers, and other high-up executive personnel within an organization from litigation. Since these individuals are responsible for making big decision that impact the organization, its employees, and the general public, they are on the hook when things go wrong. Luckily, D&O insurance covers the cost of defense if a lawsuit is filed. In other words, taking out a D&O insurance policy can protect your organization from going bankrupt after an unfortunate mistake.
Claims Against Non-Profits
Just like corporate directors and board members, non-profit directors and officers are held accountable if they make a bad decision. Surprisingly, a majority of the claims brought against non-profit groups are from employees. In fact, a survey by consultants Tillinghast revealed that 96% of claims brought against non-profit organizations are from employees, compared with just 23% against public companies. In a recent example, and one that occurred not too far from New York City, the executive board members of Consolidated Industries of Greater Syracuse, a non-profit agency providing job training to the disadvantaged and disabled, were sued by former employees seeking unpaid wages and damages totaling $10 million.
While D&O insurance certainly doesn’t give your non-profit organization license to act irresponsibly without consequence, it can help cover the losses sustained during certain legal proceedings.
Even professionals can make mistakes. Unfortunately, when high-level executives and managers make a mistake, it can result in multi-million dollar lawsuits. The good news is that professional liability insurance, such as directors and officers (D&O) insurance, is designed specifically to protect yourself, your colleagues, and your organization should a lawsuit be brought against your non-profit. Professional liability insurance is most commonly associated with private companies, but they can serve as an extra measure of protection against litigation for non-profit organizations and even community associations.
If you run a non-profit, contact an insurance company in New York City that specializes in providing insurance plans for non-profits . In addition to D&O insurance, you may also be interested in business auto liability, employee benefits liability, sexual conduct liability, and commercial general liability policies for your non-profit.
As a nonprofit, your organization may have different goals than your for-profit counterparts, but you share the same risks. Nonprofit status doesn’t reduce your exposure to property damage expenses or even lawsuits against your directors and officers. This is why having the right kind of group nonprofit insurance is so important. You need policies to cover your property, worker’s compensation, general liability, and auto insurance. One of the most crucial forms of coverage for a nonprofit to have is directors and officers liability insurance. D&O insurance helps your nonprofit pay the costs of defending your board members from charges associated with their handling of the organization. Learn more in this infographic from Gross & Company Insurance, offering group nonprofit insurance in New York City . Share this information with your board and other nonprofits to ensure that everyone has the right protection when striving to realize their missions.
Even if your organization is not-for-profit, you can still benefit from something called business insurance. Basically, business insurance is any umbrella liability insurance policy that protects your organization and key executive members in the event of financial difficulty or loss. Examples of business insurance include Business Auto Liability, Employee Benefits Liability, Sexual Harassment Liability, and Directors & Officers (D&O) Liability.
Watch this video to learn about the basics of business insurance. If you run a non-profit organization in New York City, speak with a company that specializes in non-profit insurance policies. Non-profit insurance needs differ from those of private and publicly traded businesses, so speak to someone who understands the specific insurance needs of a non-profit organization.