What is GL? Commercial General Liability & Property Insurance provides coverage for lawsuits filed against the Nonprofit and it representatives. It protects the nonprofit against liability for property damage or bodily and personal injury that it allegedly caused.
Understanding the key components
Bodily Injury: Insurance that protects the insured organization and its representatives against allegations of negligence that results in bodily injury.
A GL policy might cover:
1. A slip and fall on the nonprofits' premises; these "slip and fall" types of policies generally exclude coverage for allegations of wrongdoing where physical injury cannot be proven (i.e. mismanagement, conflict of interest, or harassment).
2. Products & Completed Operations Liability: Protects the organization from suits for bodily injury or property damage caused by a product if it is manufactured or sold, or from a job it has completed. Or if your nonprofit conducts fundraising endeavors, it has an exposure to products liability claims.
GL policies: generally provide a defense, regardless of whether the claim is true, and pay any judgment or settlement up to the policy limit. (In its purest form, GL covers the insured for claims resulting in bodily injury.)
Property Coverage: Insurance that provides coverage for office equipment and/or buildings. In many cases Property Coverage is more cost effective if packaged within a General Liability policy.
Some types of coverage might be:
- Coverage against loss of a building owned by the insured.
- Glass and Signs
- Business personal property (contents: computers and other office equipment).
- Water (water damage to another tenant's property caused by an employee's failure to shut off a faucet).
- Fire
- Theft
- Fine Arts and Collectibles
Special Events Coverage: If your nonprofit sponsors a fundraiser or other events, you must ensure that each event or activity is covered by the insurance program.
Additional Coverage to a GL Policy: Some examples of additional coverage that can be requested under a GL policy are: Professional Liability, Auto; Hired and Non-owned Auto, WC, Abuse and Molestation, Umbrella coverage (provides additional limits of liability above those furnished by the basic liability policy, and will "drop down" to provide liability coverage in an area where the basic underlying policy does not cover the risk because the organization does not normally have an exposure to that type of claim).
*Exclusions: As in any type of insurance, there are exclusions to GL coverage. Not every exposure may be insurable. Some exclusions include: an act of war, nuclear explosion and electrical power surge damage.
There are many variables to a GL policy and it is important that the insured read their policy carefully.
(Note: General Liability should not be confused with Directors and Officers Liability (D&O) coverage. D&O insurance indemnifies an organization and its officers for allegations for wrongful acts resulting from the "management and governance" of an organization.)
Have questions about your gl insurance policy? Looking for a quote to compare to your current coverage? Contact us at 1-800-515-5012 ext 141 or amarietta@councilservicesplus.com for more information.
CSPlus Can Offer:Your Organization
- Directors & Officers Liability
- Fiduciary Liability Insurance
- General Liability, Property & Auto
- Crime Insurance (Fidelity Bonds)
- Professional Liability Insurance
- Insurance for Special Events
Your Employees
- Health & Dental Insurance
- Short/Long Term Disability
- Section 125 Services
- Workers Compensation
- NYS Statutory Disability
- Group Life Insurance
- Retirement Programs
Your Volunteers
- Accident
- Medical Reimbursement
- Liability Insurance
- Excess Auto Liability
- Disability Benefits
- Vision Discount Program
No comments:
Post a Comment