Importance of General Liability Insurance

June 10, 2016

Animal welfare organizations do a great deal of good for their local communities and the animals they help.  Directors of the organizations have a lot on their schedules with volunteer recruitment, volunteer training, fundraising, and the day to day operations that they often forget to look at their insurance protection plans to verify there is adequate coverage. There are many different types of insurance coverage that are beneficial and necessary in running businesses, but what about non profit organizations, like animal shelters or rescues? Some types of insurance include directors & officers liability, general liability, accident and health, and special event insurance.

General liability insurance is one of the most common types of insurance carried by nonprofit animal shelters.  General liability insurance may provide protection for shelters and rescues in some of the following scenarios:

1.    A visitor to your shelter falls on uneven pavement and injures themselves which results in medical bills.  The medical bills would be paid for by your liability insurance.

2.    A family interested in adopting a dog or cat this is located at a foster home, visits the home and their child falls down the steps injuring themselves.  Coverage under the foster home’s homeowner policy is typically excluded because the visitor was there on business.  A general liability policy would provide coverage for the bills associated with it.

3.    Your organization sets up at local events promoting adoption of your animals. While you are there, one of the dogs jumps up and knocks an individual over causing injury.  A general liability policy would provide coverage for the medical bills as well as defense costs and settlement costs in the event a lawsuit is filed.

By choosing to not carry general liability insurance, your animal shelter is at risk for being sued for any one of the above type events. If you have no insurance in these instances, the shelter or rescue could be forced to close its doors and all of the hard work you and your volunteers have invested will be gone.

There are many different types of insurance that would benefit an animal shelter or rescue. It is most important that the individual shopping for insurance is honest with the insurance agent about all the daily happenings, services, and events being provided and attended by the organization.  Your agent will be able to help guide you in determining what your best insurance options are for complete coverage.

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