All nonprofits have property and tasks to protect and, therefore, insurance is absolutely a necessity. When starting a nonprofit, many people are usually eager to know the rates they will pay or whether the rates will increase every year. Therefore, it is particularly vital to understand how to get insurance for nonprofit organizations that will best suit your needs at a price you can comfortably afford. This is an important, yet beneficial move that will protect your organization from any claims and risks.
When contemplating purchasing insurance coverage, there are several factors that will affect or determine your premium. Below are the main factors to keep in mind:
I). Annual Revenue
In order to measure the scope of your activities, many insurance companies would want to know your annual revenue. You must have all your records, cheques must be properly co-signed, and tax receipts must be issued in compliance with the CRA guidelines. Your annual revenue will also help to come up with a risk analysis of the activities and operations of your organization.
II). Activities and Operation
What you do as a nonprofit is a very important factor that insurance companies would want to know. If your operations are complex, this means there will be more risks, consequently, high premium rates. Ideally, if you are a small organization, your risks are going to be lower than large nonprofits that offer legal or professional services. You must fully disclose all your activities when looking for the best rates for insurance for nonprofit organizations.
Types of Insurance That are Best for Nonprofits
General Liability Insurance
Accidents can occur anywhere due to various reasons. If an individual is injured while on your property, your organization will be required to pay compensation. Therefore, it is vital for you to have such a coverage to protect you against any risk and claims.
Property Insurance
Whether you rent or own a space, put in mind that there are several risks like fire, earthquake, storm or vandalism that might occur at any time. With insurance coverage, you can be sure to be covered against such situations. Your coverage package should not only include the building, but the fixtures, office furniture, supplies, computers and accessories and equipment.
