Good deeds aren't always a personal mission. You can make a career out of helping others by starting a non-profit venture. But it's important to make sure you're protected. So, when do you need to obtain non-profit insurance for your program?
Every situation is different. Most organizations benefit from investing in non-profit insurance as soon as they establish. Doing so protects you personally, as well as your venture as a whole. Take a closer look at why this insurance is so important.
Here's an Example of When You Need Coverage
Let's say you start your non-profit organization to help people in your community. Your organization expands quickly, and you find yourself employing more people. You start thinking of next steps, including expansion and collaboration with other businesses. You even start thinking about opening a physical location. These are all positive signs that your organization is thriving.
It's good to start planning for these expansion steps. But make sure non-profit insurance is in place first. A policy can be essential to protect your interests.
Are You Applying For Non-Profit Designation?
A good time to buy non-profit insurance is before registering your organization. Most states require a formal application for non-profit status, which your attorney can often file.
You will also need to register with the IRS to hold non-profit status. Often, you need to prove you have adequate coverage in place as part of this process. This makes non-profit a legal necessity as well.
When To Make Your Move
If you are not ready to incorporate yet, consider these tips for setting up insurance:
- Do you know your risks? Can someone sue you for workplace injuries, workplace illnesses or vehicle accidents? If so, speak to your business insurance provider about coverage.
- Is your non-profit operating out of a physical location? If so, that property needs coverage. Designate a specific area of your home for coverage if necessary.
- Do you have employees? If you have anyone receiving a paycheck from the organization, you will need coverage.
Take the time to speak to your business insurance agent. Discuss what your organization does. Then, discuss where it operates. This information can help your agent customize a plan.
Your policy should include all assets and risk types as well. And it should have the ability to scale upward with the organization. This means that workers compensation coverage and D&O insurance should be considerations; you might need them as your organization grows.
Get covered today. Call California Church Insurance Services at (800) 767-8681 for a free California non-profit insurance quote.