Workers’ compensation is a well-known aspect of many industries, but when running a nonprofit or another volunteer-driven business, the question of whether you are required to provide Workers Compensation in the event of an accident grows a little more complicated. While it varies by state, it’s crucial to have measures in place in case something happens. If someone is injured on the job and decides to sue you, you need to be prepared. There are two types of insurance for nonprofits to get: general liability insurance, which covers short-term volunteers, and workers’ compensation, which covers long-term volunteers. Founded in 1993, Philadelphia-based Domenick & Associates is a full-service brokerage firm specializing in the nonprofit sector, so when it comes down to your nonprofit questions, D&A has all of the right answers and is ready to help.
What to Know About General Liability
General liability covers short-term volunteers, meaning that if they are injured on the job, they will be completely covered. All legal costs would be covered under your GL. If you’ve had an employee for years, however, then that would fall under workers’ compensation.
What to Know About Workers Compensation
Workers’ compensation covers long-term volunteers who may have filled out a W2 form, depending on your state. If you need to know the rules regarding this specific insurance policy, make sure to take a look at your state’s workers’ compensation requirements. If you’ve had the same volunteer for years, who performs the duties of an employee, they’re going to need workers’ compensation to cover their injuries. Insurance companies view these partnerships just like as they would an employer-employee relationship. Things that can be covered under your policy include immediate medical attention and other costs associated with the injury, such as how long your employee is going to miss work.
Why Workers’ Compensation is Good for You
Your policy will include Employer’s Practices Liability Insurance (EPLI), which makes sure you are covered in the event that your company is sued by an employee. All in all, your insurance policy will give you the tools needed to stay safe and protected. Consider it a safety net in times of crisis. Workers’ liability insurance, as it’s sometimes called, helps your business by footing the bill on your heftiest expenses.
While it may seem like a hassle to have to purchase extra insurance, it’ll be worth it in the long run. If something does happen, you want your nonprofit to be covered. With D&A, you’re in the right hands.
About Domenick & Associates
At Domenick & Associates, we specialize in protecting nonprofit organizations. Our coverage is custom-tailored with your clients in mind to guarantee them the best protection. For more information about our products, contact us today at (215) 629-5701.