Nonprofit Organization Insurance Maine Policy Information
Nonprofit Organization Insurance Maine. If you are in charge of fraternal organization, charitable foundation, or house of worship, then you must take steps to protect your non-profit from liability by obtaining a high-quality insurance policy. Your non-profit organization, or NPO, must shield itself from financial loss with a policy that is tailored to the custom needs and inherent risks that you face.
If your NPO handles large amounts of revenue and works with a lot of people, it's doubly important to review your nonprofit organization insurance Maine needs with a licensed agents.
Nonprofit organization insurance Maine protects your 503(c) from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Coverage Types Nonprofit Groups Should Consider
There are more than 1.5 million non-profit, tax-exempt organizations operating in the United States. Around two-thirds of them are public charities, while less than 100,000 are private foundations. Civic leagues and fraternal organizations account for nearly a half-million of these NPOs, and non-profits pay around 10 percent of all salaries and wages in the country, making up around 5.5 percent of the gross domestic product.
Although they don't operate for profit, ME non-profit organizations must protect their assets and finances in much the same way as businesses do. Business insurance policies for these types of groups are specially designed for the individual coverage needs of each group. Being fully covered against damage and loss is important to the health of the organization. Some of the different types of nonprofit organization insurance Maine coverage for non-profits to think about include:
- Commercial liability insurance. General purpose insurance that protects the non-profit from liability claims is an important purchase. This covers accidents and injuries on the premises as well as damages caused by representatives of the non-profit elsewhere.
- Vehicle insurance. Obtaining vehicle insurance for commercial purposes is important for non-profits. Personal vehicles used in the course of commercial activity are typically not covered on a personal auto policy.
- Property insurance. Property insurance covers damage to your property, including your organization's building, equipment, and other items.
- Director's and officer's insurance. This type of insurance covers directors' and officers' liability insurance to cover specific liability incurred by these professionals.
NPO Insurance Protection
While many charity groups and non-profits are under the misconception that they are not at risk for liability and claims from others, the truth is that they are just as vulnerable. The actions of representatives of the non-profit or charity, including its volunteers and its employees, are the responsibility of the non-profit. As an organizer or founder or the non-profit, it's crucial that you take measures to mitigate any claims by having a good nonprofit organization insurance Maine policy in place.
Non-Profit Liability Coverage
In today's society, there are many litigious people, and even the most frivolous of claims can turn expensive for the non-profit agency. A good non-profit insurance policy has a sufficient level of liability coverage. This type of coverage protects the non-profit from third-party claims for property damage or bodily injury. It can also cover court costs and fees for legal representation.
Some instances that necessitate a strong nonprofit organization insurance Maine liability policy:
- Organizations that own the building housing their non-profit. This is particularly true if the ME NPO owns the building in which it conducts its business, since most mortgage brokers and lenders require that the NPO keep coverage as a condition of their loans. If running the NPO from home, a homeowner's policy may not be sufficient; check with an agent to find out if you should purchase a more extensive policy.
- The ME nonprofit rent the building where they conduct their operations. If an NPO rents the building in which it operates, then most rental companies require a business insurance be in place prior to commencement of operations, just as if the NPO were a traditional business entity.
- Charity owes a substantial amount of money to a lender. Even if the building in which the NPO operates is not financed, if the NPO owes a substantial amount for operational loans or other loans, then it makes sense from the lender's perspective to require business insurance. The lender wants to ensure that a claim against the NPO does not cause it to go bankrupt, which would cause a default on the loan.
- The ME nonprofit rents a venue to hold a fundraiser. When holding a gathering at a banquet hall, hotel, or other venue, the NPO must have a sufficient amount of insurance coverage to cover the people and the venue's property in the event of an accident or other occurrence.
- Ideuries on the job for employees or volunteers. Bodily injury and worker's compensation are both essential for NPOs to cover injuries or illnesses related to the job or volunteer service.
Most insurance experts recommend that the basic NPO carries at least $1 million in nonprofit organization insurance Maine general liability coverage. The more your organization can afford, the better.
Commercial Auto Insurance for Nonprofits
Another area to consider is ME commercial vehicle insurance. If the ME NPO owns a van, truck, or car that it uses for business operations, then it is important to carry commercial insurance. Likewise, if the charity's members sometimes use their private cars while performing business for the organization, then a non-owned or vehicle-for-hire policy is a good investment, since it protects the organization from liability and claims involving those types of vehicles.
Buying a Non-Profit Insurance Policy
Check with your insurance agent for specific types of nonprofit organization insurance Maine insurance and riders that you may need to consider for your non-profit's specific needs to guard against potential liability and to cover any claims against the NPO that might affect its financial future.
Maine Economic Data, Regulations And Limits On Commercial Insurance
You have a great idea for a business and you have developed excellent products and services that you are certain people will benefit from. You've also developed a viable business plan. Now you need to choose a place to start your company.
In order for your company to be as successful as possible, you need to choose a location that offers a favorable market for your specific business. After all, if the area doesn't offer a job force to support your operation or a target market that will purchase your products and services, you likely aren't going to succeed.
With that said, if you are thinking about starting a business in Maine, having an understanding of the state's economic trends is essential. It's also important to know what type of commercial insurance you'll need to carry. Below, we offer an overview of this information so that you can determine if ME is right for your business.
Economic Trends For Business Owners In Maine
Unemployment rate is a good indicator of a state's economic climate. The lower the rate, the more opportunities exist for business owners, as it suggests that there are ample job opportunities, and the more job opportunities, the more successful businesses there are in the region.
As per the Bureau of Labor Statistics, the unemployment rate in the state of Maine was 2.9% in December, 2019; that's 0.6% lower than the national average, which was 3.5% at the same time.
Additionally, according to economists, more employment opportunities are expected in the coming years, which will further reduce the unemployment rate.
While locations throughout the state offer opportunities for business owners, there are certain locations that are ideal for entrepreneurs. These locations include:
- Bar Harbor
These cities are the largest in the Pine Tree State, so it's understandable why they offer the best opportunities for businesses. While Maine is home to multiple industries, there are specific sectors that do particularly well here, including:
- Finance and insurance
- Hospitality and tourism
- Information technology
- Professional services
- Real estate
Therefore, if you are considering launching a business in any of these industries, Maine is likely a good location for your company.
Commercial Insurance Requirements In Maine
The Maine Bureau of Insurance regulates insurance in ME. Maine mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Maine requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. Independent contractors do not count as employees, but if those contractors employ subcontractors, the subcontractors must be covered by a workers compensation policy.
Maine also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Non-Profit Insurance
Find useful articles on business insurance for non-profit 501(c)(3) organizations, charities and associations.
- Animal Shelter & Pet Rescue
- Classic & Collector Car Clubs
- Fraternal Organization
- Goodwill Insustries
- Labor Union
- Parent Teacher Organization
- Public Administration
- Red Cross Chapters
- Salvation Army
- Social Work Services
- Veterans Groups
- Volunteers of America
- Youth Groups
For 501(c) Non-Profits - Directors And Officers Liability Insurance has become an increasingly important policy to have. D&O coverage protects insured directors or officers against claims involving allegations of wrongful acts occurring while performing their duties as such. The insurance is divided into two separate coverages:
Side A coverage reimburses the individual directors and officers for payments made for loss each has incurred because of wrongful acts.
Side B coverage reimburses the corporation for the payments it has made on behalf of the directors or officers themselves.
General Liability is a foundational policy for almost any business. Most companies do not have any control over the final cost of injuries to a person injured because of their operations, products, or services. The person injured may be a young child, a blue-collar worker, a surgeon, or a homeless person.
The cost of the injuries may be comparatively minor or run into the millions of dollars, depending on the person and the extent of his or her injuries. Do you have sufficient assets to pay such a loss?
Commercial general liability insurance is designed to help you protect your assets with three main coverages:
- Coverage A: Bodily Injury and Property Damage Liability
- Coverage B: Personal and Advertising Injury Liability
- Coverage C: Medical Payments
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Computers, Valuable Papers and Records, General Liability, Directors and Officers Liability, Employee Benefits, Professional, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Fine Arts, Musical Instruments, Commercial Articles Floater, Computers, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.
Request a free Non-Profit Organization Insurance Maine quote in Arundel, Auburn, Augusta, Bangor, Bar Harbor, Bath, Belfast, Berwick, Biddeford, Brewer, Bridgton, Brunswick, Bucksport, Buxton, Camden, Cape Elizabeth, Caribou, Casco, China, Cumberland, Dexter, Dover-Foxcroft, Durham, Eliot, Ellsworth, Fairfield, Falmouth, Fort Kent, Freeport, Fryeburg, Gardiner, Glenburn, Gorham, Gray, Greene, Hampden, Harpswell, Hermon, Hollis, Houlton, Jay, Kennebunk, Kennebunkport, Kittery, Lebanon, Lewiston, Limington, Lincoln town, Lisbon, Litchfield, Lyman, Madawaska and Wiscasset, Madison, Millinocket, Monmouth, Naples, New Gloucester, North Berwick, North Yarmouth, Norway, Oakland, Old Orchard Beach, Old Town, Orono, Orrington, Oxford, Paris, Pittsfield, Poland, Portland, Presque Isle, Raymond, Richmond, Rockland, Rumford, Sabattus, Saco, Sanford, Scarborough, Sidney, Skowhegan, South Berwick, South Portland, Standish, Topsham, Turner, Vassalboro, Waldoboro, Warren, Waterboro, Waterville, Wells, Westbrook, Wilton, Windham, Winslow and Farmington, Winterport, Winthrop, Yarmouth, York and all other ME cities & Maine counties near me in The Pine Tree State.
Also find ME local small businesses by General Liability Class Code and learn about Maine small business insurance requirements for general liability, business property, commercial auto & workers compensation including ME business insurance costs. Call us (207) 401-4779.