Running a nonprofit organization in California offers a wonderful opportunity to support local marginalized communities, groups, and individuals. However, if you manage a non-profit, you might be wondering about the necessity of non-profit umbrella insurance. While it’s not legally required to have umbrella insurance in California, a $1 million general liability policy is typically required if you plan to host fundraisers or events in Southgate, CA. If you’re interested in learning more about umbrella insurance for nonprofits, ANA Insurance Brokerage Inc. is here to assist.
Why Traditional Limits May Not Be Sufficient
Standard policies often fall short in protecting and preserving non-profits in the event of an injury, lawsuit, or liability claim. Here’s why traditional limits may not be adequate in California:
- Expense: In LA County, seven-figure liability awards are not uncommon. High-density, high-verdict areas can quickly become expensive, potentially overwhelming non-profit organizations.
- Special events: If you’re hosting an event, have a venue contract, or work with federal contractors, you’ll often be required to carry a premium that ranges between $2-5 million in many instances in LA County.
- Exposure: When working with volunteers, an umbrella policy can extend protection to existing volunteers, board members, and staff.
When Non-Profits in Southgate Should Consider Umbrella Insurance
Umbrella insurance is particularly beneficial for non-profits when you:
- Host charity events and rely on the support of volunteers.
- Apply for state or county grants that may stipulate higher liability limits.
- Reserve and/or lease city facilities for marathons, food drives, and local picnics.
While umbrella insurance policies are recommended for protecting your non-profit in Southgate, CA, they are not legally required in the state. Whether you’re starting for the first time or looking to enhance your security, we can assist. To determine which policies are best for your organization, contact ANA Insurance Brokerage Inc. today.
