Umbrella Coverage Explained for your Nonprofit, Social and Human Services

What is Umbrella Coverage?

Nonprofit organizations have a variety of unique exposures that can make their appropriate liability limits, and insurance coverages, difficult to gauge. As time passes, our society is growing to be more litigious in nature, which makes nonprofit losses even harder to predict. It is especially important for nonprofits to have comprehensive coverage in place, so that they're always in the best position to be protected. An important part of securing comprehensive insurance coverage includes an Umbrella policy. Umbrella insurance policies offer extra liability insurance in the event of a large loss, which enables nonprofit organizations to continue to focus on what matters - their mission.

Why is Umbrella Coverage Needed?

Umbrella coverage is a strong asset to have, especially working with a nonprofit. The funds to run a nonprofit operation are slim as it is, it would be detrimental if the nonprofit organization was forced to pay an insurance claim out of pocket because they did not have the proper coverage limits.

The following are claims examples that illustrate the severity and regularity that nonprofit claims can occur:

• A fraternal club was having a cookout while celebrating Independence Day. The propane tank on the grill exploded, severely burning eight veterans and two children. The case settle for $3,900,000, well over their $1,000,000 general liability limit. 
• A young church volunteer was helping paint the outside of the church. While on the ladder, the volunteer slipped and fell on the ground, suffering major head and neck injuries. $2,500,000 was paid to the volunteer's family.
• A youth community center took a group of teenage members to a local swimming hold for the day. A 14 year old boy drowned during the outing. The case settled for $2,800,000.

Get a package quote with Umbrella coverage or add monoline Umbrella coverage to any existing policy for your nonprofit, social or human services today!