Welcome to Griffith E. Harris Insurance Services - Commercial

Non-profit organizations play a major role in all of our lives; even if we don’t participate directly.

From an insurance standpoint, however, nonprofits are generally held to the same degree of responsibility – and potential liability – as most any other business. Under certain circumstances, both state and federal laws provide a limited degree of protection, however these "shield" statutes are by no means universal.

A nonprofit organization is generally held to the same standards of non-discrimination in matters of employment. Since the various forms of tax-exemption come with specific guidelines, a nonprofit has to be extra careful how it raises and spends its money. A violation of these guidelines could cost the organization its tax-exempt status, triggering potential penalties to its contributors.

Key insurance issues that all nonprofit organizations – large and small – should consider, include:

DIRECTORS & OFFICERS LIABILITY:

Remember, you do not necessarily have to have done anything wrong for someone to make an allegation, file a lawsuit, or cause a government agency to begin an investigation. Even if the matter is dismissed, the organization, its directors, its trustees, its officers, its employees, and even its volunteers still may be faced with the substantial costs involved in defending such an action, including attorneys fees, investigations, and time. A well designed nonprofit D&O liability policy will respond to the unique exposures of the particular organization.

EMPLOYMENT PRACTICES LIABILITY:

Simply the fact that it’s a nonprofit entity does not, in most instances, relieve the organization from the responsibility to handle matters of employment in the same non-discriminatory manner that is required of a for-profit business. In fact, employment practices claims are now the #1 cause of actions being brought against nonprofit organizations. Some directors & officers liability policies automatically include coverage for employment practices claims.

FIDUCIARY LIABILITY:

A nonprofit organization must be very careful about how it raises and spends its funds. Allegations of mismanagement, misappropriation, waste, or self-dealing, can be made by donors, members, government agencies, or even potential beneficiaries.

PROFESSIONAL LIABILITY:

Should an organization be involved in rendering any sort of professional service or referral, it needs to be covered for professional liability (also referred to as, "errors & omissions" or "malpractice"). Even if those actual providing the services - such as doctors, therapists, consultants, etc. - carry their own insurance, the organization may not be properly protected.

GENERAL LIABILITY:

Some organizations need coverage for such things as "bodily injury", "personal injury" or even "owned & non-owned automobile liability." All of these risks are excluded from a directors & officers liability policy, though some carriers offer these as options within a comprehensive nonprofit insurance package.

SPECIAL EVENTS LIABILITY:

Should an organization hold a fundraising event, a street fair, a dinner/dance, or picnic, etc., liability coverage can often be written very economically on a per-event basis. Special event policies can also include coverage for such things as liquor liability, cancellation due to weather, non-appearance by a celebrity, or any one of many potential risks involved in planning a major event.

Whether you are an established organization or just getting off the ground, Griffith E. Harris Insurance Services would be pleased to provide a comprehensive review of your insurance needs and coverages.