Workers Compensation Insurance for Nonprofits: Common Myths


When it comes to non-profit organizations, there is not much more important than saving money. Unlike their for-profit counterparts, non-profit organizations do not have an unlimited amount of funds, which means they have to budget when appropriate. This begins with obtaining the right type of insurance for non-profit organizations and the knowledge of the policies that correspond to them. While many nonprofits know their need for general liability, property insurance, etc., not all non-profit organizations realize that they must also have workers' compensation insurance coverage.

While workers' compensation plans differ by jurisdiction, for most states it is required that any employer with more than one employee obtain this coverage. One of the most common myths about workers' compensation insurance for non-profit organizations is that this is not necessary. Even if your client's area does not require it, having an established workers' compensation policy is a good idea anyway, since it helps cover the costs of medical expenses and lost wages for employees who suffer injuries related to the job. These are costs and it is possible that a non-profit organization can not keep them, since they are likely to have to replace the employee temporarily, which also means paying that employee.

Another common myth is that employees will not sue. In the nonprofit industry, the people who work for these companies are often not expected to participate in frivolous lawsuits. However, employees without workers' compensation coverage may feel they need to sue simply to pay their medical bills. The non-profit organization may have to pay judgments for pain and suffering, defense costs and other legal fees that may not be available in your funds.

A final and very common myth about workers' compensation is that employers do not need it because they provide a safe workplace and their employees will never be injured. However, even in the safest workplace, errors that cause an injury can occur. Even a minor injury can cause significant damage if a company is not ready.

Understanding the importance of Workers' Compensation Insurance for Non-Profit Organizations is essential for your clients, as well as for you. At Care Providers, we are committed to helping you place coverage for your nonprofit clients. Our mission is to provide coverages adapted to meet the unique needs of this market segment. Contact us today for more information at 1-800-970-9978.

Video credits to CareProviders Insurance Services YouTube channel





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    Workers Compensation Insurance for Nonprofits: Common Myths

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