In the preparation phase the foundation team will also have to consider which insurance coverage the institution might need before starting its operations. The decision will largely depend on the availability, risk and cost of insurance coverage in your country of location. In many countries, the legal framework obliges organisations and businesses to take out insurance coverage for specified areas. Contact a trustworthy insurance agency (if available) to propose a cost efficient and suitable insurance package for your institution.
You should always file and keep track of your insurance contracts and the start and end dates.
Tracking insurance policies and cost
Source: 501 Click Corporation
In general, the following insurance coverage should be considered and in many countries they are already foreseen by law:
Liability insurance
Covers liability for injury to persons or property caused by the institution or its staff and allied persons. In case the institution works with volunteers, make sure that the insurance policy also covers these people.
Vehicle insurance
Liability for injuries caused by the institution’s vehicles and employee vehicles when used for business purposes
Directors & Management liability insurance
Indemnifies management and directors for expenses incurred as a result of acting on behalf of the institution but in exceeding their powers and duties.
Health & medical insurance, accident insurance
Accident insurance should be concluded for staff members and contracting persons. They will be insured against any accidents that occur in the time when they are working for the institution. In some countries institutions not having concluded accident insurance for their staff might be hold liable instead.
The health and medical insurance fee normally state an important cost factor and will be considered as an extra incentive for the employees in form of a social benefit package.
Property damage insurance (office insurance, …)
Covers damage to the institution’s property, it is especially important if you plan to maintain training or conference facilities.