COVERAGE NAME

COVERS LIABILITY FOR

GENERAL LIABILITY

Bodily Injury and Property Damage caused by an accident.

DIRECTORS & OFFICERS LIABILITY

Financial loss and Personal Injury caused by Wrongful Acts. 

General Liability

Directors & Officers Liability

Covers Bodily Injury and Property Damage only.

Always excludes Bodily Injury and Property Damage. 

Covers accidents only.  Claims usually arise directly from operations rather than governance. 

Covers Wrongful Acts. Claims usually arise from governance or management decisions.  Board members, management staff and the organization itself are likely to be defendants.

Usually Occurrence Liability.

Usually Claims-Made Liability.

Standardized policy wording.

Non-standard policy wording.

General Liability

Directors & Officers Liability

Covers liabilities common to all nonprofits. 

Same

Provides broad catch-all coverage.  Other liability coverages are more specific and narrower in scope.

Same

Includes all board members, employees and volunteers as Insureds.

Same

COVERAGE NAME

NEEDED IF

COVERS LIABILITY FOR

PROFESSIONAL LIABILITY

Your nonprofit provides professional services

Injury caused by negligence in the delivery of professional services or by failure to maintain professional standards

SEXUAL ABUSE LIABILITY

Your nonprofit provides in-person services, especially if to vulnerable populations

Claims alleging sexual abuse caused by negligent hiring, screening or supervision. 

WORKERS COMPENSATION

Your nonprofit has employees

Bodily Injury to employees while working for you

AUTOMOBILE LIABILITY

Your nonprofit owns or leases private passenger vehicles, buses, vans or trucks

Bodily Injury and Property Damage caused by accidents involving vehicles you own or lease

NONOWNED AUTOMOBILE  LIABILITY

Your employees or volunteers use their own vehicles on your behalf

Bodily Injury or Property Damage caused by accidents involving vehicles owned by employees or volunteers while driving on your behalf

HIRED AUTOMOBILE  LIABILITY

Your nonprofit rents vehicles on a short-term basis

Bodily Injury or Property Damage caused by accidents involving rented vehicles

EMPLOYMENT PRACTICES LIABILITY

Your nonprofit has employees

Economic injury to employees due to wrongful termination, sexual harassment, wrongful failure to hire or promote, wrongful demotion, illegal discrimination, or retaliation

EMPLOYEE BENEFITS LIABILITY

Your nonprofit provides health insurance, life insurance or similar benefits to employees

Financial injury to employees resulting from negligent administration of employee benefit plans

FIDUCIARY LIABILITY

Your nonprofit has a pension plan

Breach of duties under

Employee Retirement Income Security Act of 1974

LIQUOR LIABILITY

Your nonprofit sells liquor at fundraising or social events

Bodily Injury and Property Damage that results from your negligence in contributing to intoxication of  guests or participants

WATERCRAFT LIABILITY

Your nonprofit owns watercraft, or rent or operate a watercraft more than 25 feet long

Bodily Injury or Property Damage caused by accidents involving watercraft your nonprofit owns, leases or rents

COVERAGE NAME

 COVERAGE

UMBRELLA / EXCESS LIABILITY

Provides an additional limit of liability above the policy limits of other liability policies.  Coverage is triggered if underlying policy limits are exhausted by claim payments.

FOREIGN LIABILITY

Provides coverage for claims made outside the territorial limits of other liability policies.  Coverage is usually needed only for regular or permanent operations outside of the US, its territories or Canada. 

TERRORISM LIABILITY

Adds coverage to other liability policies for claims alleging failure to take adequate precautions for terrorist attacks.