Nonprofit organizations might think they’re exempt from certain liabilities, but that couldn’t be further from the truth. Like any business, human and social service organizations share the same risks as most entities, especially when it comes to auto insurance. And knowing what your client’s exposure and coverage needs before they do is an essential part of the work you do every day.
On the road again
Commercial auto insurance is another important coverage for nonprofits because it protects the vehicles used by the organization. Without it, a lawsuit could prove financially devastating. And whether its human services, arts, educational, civic or other type of nonprofit, your client needs to be protected against potential defense costs and damages in the event of an accident.
In fact, auto claims are actually quite common for nonprofits today. Consider everyday tasks conducted by a nonprofit like driving a senior citizen from a residential facility to a doctor’s appointment or transporting volunteers to a community event. Anything can happen on the road and the daily risks associated with driving make nonprofits quite vulnerable to that exposure.
Commercial vs. Personal
Vehicles utilized by your clients’ nonprofit can be covered by commercial and personal auto insurance. And all vehicles owned by the nonprofit directly must have commercial auto coverage – in fact, it’s required by each state.
But what if a staff member or volunteer is using their own vehicle? Does the nonprofit still need commercial auto insurance to protect them as well?
Yes. Many staff and volunteers may drive their own vehicle in carrying out your nonprofit client’s mission. While their personal insurance will provide coverage, it may not be fully adequate in the case of a serious accident – leaving the nonprofit liable.
Hired and Non-Owned Auto Coverage (HNOA) enables the financial, medical and personal protection required to cover costs associated with theft, auto damage, medical bills and bodily injury when renting, leasing or borrowing a car for non-personal use, or when employees use their own cars on behalf of the organization.
By working with underwriters with decades of experience working with insurance for nonprofit and human services organizations, you can secure best-in-class commercial auto coverage that meets the unique and often complex coverage needs for nonprofits today.
With Convelo’s exclusive, niche-driven programs at your fingertips, you can easily deliver the best policies at competitive rates to your clients. Our specialized experience in writing policies in this sector means those special risks are covered and that your client is fully supported.
At Convelo, we’re licensed to do business with nonprofit organizations in 50 states, and we customize each policy to meet your client’s unique exposures – at a competitive price.
Connect with us today to learn more about your client’s commercial auto insurance needs.