Directors and Officers liability insurance (D&O) is most often associated with large for-profit companies, but any organization that’s liable to public and legal scrutiny can benefit from a D&O policy. The directors and officers of a non-profit organization, for example, have just as much exposure to personal liability as the heads of large corporations. In fact, non-profit directors and officers may face even more risk because the affairs of the organization are often conducted under less efficient conditions than in for-profit business corporations. Here’s a look at some of the key features of a D&O policy for a non-profit.
Most liability insurance policies pay for events that occur during the policy period. In the case of D&O insurance, a policy covers lawsuits filed during the policy period. This means the wrongful act could have occurred years before the claim itself was made, and even before the policy was taken out with a non-profit insurance provider in New York City.
Extended Reporting Period Coverage
In the event that you decide to replace or cancel your D&O liability insurance policy, you may still desire protection for events that took place prior to the expiration or cancellation of your policy. Extended reporting period (ERP) coverage provides protection for lawsuits and actions brought during the policy period. Talk to your insurance provider to find out more about premiums and coverage lengths for ERP policies.
Legal Defense Coverage
If your non-profit is being sued, you could face months or even years of being dragged through litigation. Unless you have the time and ability to defend yourself, you will need to hire a competent legal defense team. When signing up for a D&O insurance policy in New York City, pay close attention to the defense limit, which covers the awards and the defense costs of all claims made during the policy.
As the director or officer of a non-profit organization, you may be held personally responsible for any actions that lead to personal injury or financial ruin. As such, you can be sued directly for damages. Directors and officers liability insurance (D&O) provides defense and settlement provisions that can limit your personal risk in the event of a lawsuit. Watch this video to learn more about D&O insurance from a commercial insurance specialist.
Talk to an insurance provider that specializes in coverage for non-profits in New York City about your coverage needs. By not having D&O insurance in place, you may be putting your personal assets at risk.
As a business owner, you need the same insurance coverage (if not more) for the cars, trucks, and vans in your fleet as you do for your personal vehicles. Most general liability insurance plans for businesses and non-profits don’t typically provider coverage for vehicles, so you must purchase auto insurance separately. To help protect your vehicles, your employees, and your bottom line, here is a guide to purchasing auto insurance for non-profits and businesses .
Scope of Coverage
The scope of coverage can either be broad or narrow, depending on which vehicles you cover to choose. In general, you have three options for which vehicles you choose to cover. Your auto insurance policy can cover all vehicles your business or organization owns, all vehicles your business owns, hires, or leases, or all vehicles used for the business, including autos that your organization does not own, hire, or lease.
Separately Scheduled Coverage
Each vehicle included in your auto insurance policy can be separately scheduled on your policy along with corresponding coverages. This means you can choose different coverages for various vehicles depending on the type of vehicle, how it is used, and who drives it. Your non-profit insurance provider can help you select the right type of coverage for each vehicle in your fleet.
Physical Damage Coverage
Business and non-profit auto insurance policies include three types of physical damage coverage: Collision, comprehensive, and specified. Collision covers the losses that result from the collision of a covered vehicle with any stationary or moving object. Comprehensive coverage provides for losses from any cause except collision and overturn, both of which are insured under collision coverage. Specified coverage insures against many of the same perils as comprehensive, but it has a lower premium since it covers only those things specifically named in the policy.
What Non-Profits Need to Know about Group Health Insurance
Although non-profit organizations are not obligated to provide benefits for part-time employees, offering health insurance to your part-time and full-time employees is a great way to show your appreciation. You may also want to offer health insurance to avoid a penalty under the Affordable Care Act. Group health insurance for non-profits is an affordable way to attract highly qualified applicants, minimize employee turnover, and avoid penalties due to recent health care reforms. Here are some important things you need to know about group health insurance for non-profit organizations.
Affordable Care Act Requirements
The Affordable Care Act is a major consideration for all employers, non-profits included. There is currently no requirement under the ACA for employers to provide health insurance. However, your organization may be penalized if you have 50 or more full-time employees and do not offer group health insurance. Besides avoiding a penalty, offering health insurance benefits are a consideration for prospective employees, especially the best and brightest candidates in the field.
Health Insurance Premium Tax Credits
In 2010, federal legislation included a provision that grants small employers, including non-profits with fewer than 25 employees, the right to receive a Small Business Health Care Tax Credit for insurance premiums paid by the employer for their employees’ health insurance. For tax-exempt non-profit organizations, this credit comes as a 35% refund on quarterly payments made to the IRS for income tax withholdings or Medicare withholdings from employee wages.
Health Insurance Providers
When shopping for group health insurance, look for an insurance provider that specializes in non-profit insurance policies. Non-profit organizations have special needs, so work with an insurance provider in New York City that understands what your organization needs to be successful without blowing your budget on group health insurance, directors and officers insurance, and general liability insurance coverage.