Business owner’s policy for nonprofits

If your nonprofit owns property, such as medical equipment in an animal shelter or a building purchased by a church, a business owner’s policy is your best line of defense. Combining the coverage of both general liability and commercial property insurance, a BOP can pay for third-party injuries as well as damage to your business property.

This policy safeguards against:

• Damage to business property
• Visitor injuries and property damage
• Advertising injuries
• Forced closure

The owners of nonprofit organizations can tailor a business owner's policy to meet their specific needs. Useful add-ons include business interruption insurance to protect against temporary closure, among other endorsements.

Nonprofits that are eligible for a BOP typically:

• Have fewer than 100 employees
• Have a small office or workplace
• Make less than $1 million in annual revenue
• Operate in a low-risk industry
• Need less than 12 months of business interruption insurance

Talk to a licensed Insureon agent who specializes in nonprofit insurance to find out if your organization meets the criteria for a BOP.

The commercial property insurance included in a BOP protects:

• Business equipment, such as computers
• Office furniture and furnishings
• Inventory, such as a food bank’s stock
• Valuables, such as a museum’s collection
• Your building if you own it

If your nonprofit is damaged by a fire – even one that started in an adjacent building – this policy can help pay for renovations and repairs. It also covers the cost of vandalized, stolen, or broken items.

The general liability portion of a business owner’s policy can pay for legal bills and reparations related to third-party injuries or property damage. For example, it can offer coverage if:

• A potential adopter is bitten by a dog at your animal shelter
• An employee at your charitable organization drops a visitor’s smartphone
• A delivery person slips on the icy front step of your church

The general liability portion of a BOP also provides coverage against advertising injuries, including:

• Defamation, such as libel (written) and slander (spoken)
• Copyright or brand infringement

For example, if an employee writes a negative comment about a competitor on social media and your nonprofit is sued for libel, general liability insurance could help pay for the cost of your legal defense.

If your nonprofit is forced to temporarily close due to a fire or other disruption, you could lose out on profits – yet still be responsible for operating costs. For example, a community center might lose out on program fees while closed for renovation due to a flood, but still have to pay rent.

Included in most BOPs, business interruption insurance can cover normal operating costs, payroll, and other expenses related to forced closure.

A business owner’s policy provides protection against many common risks for nonprofit organizations, but it doesn’t offer coverage for every situation. Nonprofits should also consider:

General liability insurance: This policy can pay legal expenses related to client property damage and injuries, along with advertising injuries such as slander.

Professional liability insurance: Also known as errors and omissions insurance, this policy can help cover legal expenses if your nonprofit is sued for unsatisfactory work or negligence.

Directors and officers insurance: D&O insurance protects board members and officers against legal expenses if they are sued for a decision they made on behalf of a nonprofit that led to financial loss.

Workers’ compensation insurance: Required in nearly every state for nonprofits that have employees, workers’ comp can cover medical expenses for work-related injuries and illnesses.

Employment practices liability insurance: If a nonprofit is sued by an employee over harassment, discrimination, or another violation of employee rights, EPLI can pay for legal costs.

Are you ready to safeguard your organization with a business owner's policy or another type of commercial insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.