The Unique Insurance Needs of Cultural Organizations
Cultural organizations provide an invaluable service to their communities by uplifting our society’s creative, culturally significant, and artistic aspects. As a centre for arts and culture, sciences, or humanities, your organization could be a museum, civic arts centre, botanical centre, arboretum, or zoo. You might be showcasing historical artifacts, rare artwork, or amazing flora and fauna. Whatever the nature of your cultural organization, your operation requires unique insurance coverage in order to guard against potential risks. At ALIGNED, our coverage is tailored to the specific characteristics of your cultural organization, your preferences and your budget.
Why do Cultural Organizations Need Insurance?
Typically operating as non-profits, cultural organizations aren’t that different from a business regarding insurance. But rather than the business owner who is the one responsible for claims against the business, it could be the executive director and/or board of directors that would be held liable in the event of a claim against an organization. In addition, the same/similar types of risks are present with other businesses, including injuries that might occur on-premises, from running events, due to day to day activities and/or damage that could be caused to the property of others. Because of their unique nature, cultural organizations also need certain specific types of insurance coverage like not for profit directors insurance.
What Type of Risk Protection is Necessary for Cultural Organizations?
To reduce exposure to financial liability, cultural organizations should consider the following types of insurance coverage:
General Liability Insurance – to protect against bodily injury to property damage that might occur as a result of your organization or its activities, events etc.
Property Insurance – this coverage will protect your physical location if you own it, as well as the contents related to your organization. This coverage is especially important for cultural organizations and inventory of artifacts or art.
Business Auto Insurance – this is essential if your cultural organization transports goods or people as part of its operations.
Cyber Insurance – to protect the information and records you keep online in the event of any breach or attack.
Crime Insurance – this coverage is essential for those organizations that house valuable collections to guard against theft by employees or fraud by others.
Directors and Officers Insurance – this coverage protects your board of directors from liability related to the decisions they make related to the cultural organization.
What are some scenarios that make insurance coverage necessary for Cultural Organizations?
- Imagine that one of your volunteers is driving the organizations van to deliver some goods and is involved in a serious car accident.
- A staff person is found to have stolen small amounts of money over a few months that adds up to a large sum. You fire the employee but must recover your losses.
- Lightning strikes your location, causing extensive damage to your expensive IT infrastructure and HVAC all of which needs to be replaced.
Find the Right Cultural Organization Insurance from ALIGNED
ALIGNED works with Canada’s top insurance companies to provide custom insurance packages at affordable prices. Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.
