Why Should You Get Insurance for a Charity Event?


Quick Answer

When hosting a charity event, charitable foundations should obtain charity event insurance for financial protection from costs associated with injury-related lawsuits or property damage during a single event, explains Trusted Choice. Banquet halls and ballrooms typically require this coverage. Charitable organizations may also opt for general liability insurance, which similarly covers attorney fees and court-awarded compensation if a third party files a lawsuit due to personal injury while visiting the organization's offices or if charity personnel damage other property.

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Why Should You Get Insurance for a Charity Event?
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Full Answer

To comply with the state's required liability coverage, charitable organizations with company-owned vehicles must carry commercial vehicle insurance, notes Trusted Choice. This type of coverage pays for costs associated with injuries or property damage to others if charity employees are at fault in a motor vehicle collision.

For charity foundations that use privately owned vehicles, non-owned vehicle insurance protects them from financial loss due to bodily injury or property damage to others, states Trusted Choice. Property insurance is also essential to protect valuable assets, such as telecommunication systems, computers and other office equipment, in the event of burglary or natural disasters.

Directors and officers insurance protects the management team from litigation-related costs if an employee files a lawsuit due to wrongful termination, discrimination or other improper actions, notes Trusted Choice. Additional coverages for charitable organizations include fidelity, loss of income and workers' compensation insurance.

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