NEW YORK COUNCIL OF NONPROFITS, INC.

(formerly CCSNYS, Inc.)

COMMERCIAL GENERAL LIABILITY

& PROPERTY INSURANCE

OVERVIEW
COMMERCIAL GENERAL LIABILITY & PROPERTY (GL)

General Liability & Property provides coverage for lawsuits filed against the Nonprofit and its representatives.
It protects the nonprofit against liability for property damage or bodily and personal injury that it allegedly
caused.

Bodily Injury: Insurance that protects the insured organization and its representatives against allegations of
negligence that results in bodily injury. A GL policy might cover:
• A slip and fall on the nonprofits’ premises; these “slip and fall” types of policies generally exclude
coverage for allegations of wrongdoing where physical injury cannot be proven (i.e.
mismanagement, conflict of interest, or harassment).
• Food poisoning from a meal (if you conduct any special events or fund raisers off premises)
• Products Liability: injury and damage caused by a product manufactured by the nonprofit.

GL policies generally provide a defense, regardless of whether the claim is true, and pay any judgment or
settlement up to the policy limit. (In its purest form, GL covers the insured for claims resulting in injury.)

Property Coverage: Insurance that provides coverage for office equipment and/or buildings. In many cases
Property Coverage is more cost effective if packaged within a General Liability policy. Some types of
coverage might be:
• Coverage against loss of a building owned by the insured.
• Glass and Signs
• Business personal property (contents: computers and other office equipment).
• Water (water damage to another tenant’s property caused by an employee’s failure to shut off a
faucet).
• Fire
• Theft
• Fine Arts and Collectibles

Special Events Coverage: If your nonprofit sponsors a fundraiser or other events, you must ensure that each
event or activity is covered by the insurance program.

Additional Coverage to a GL Policy: Some examples of additional coverage that can be requested under a
GL policy are: Professional Liability, Auto; Hired and Non-owned Auto, WC, Abuse and Molestation,
Umbrella coverage (Umbrella provides additional limits after the underlying coverage has been exhausted).

Exclusions: As in any type of insurance, there are exclusions to GL coverage. Not every exposure may be
insurable. Some exclusions include: an act of war, nuclear explosion and electrical power surge damage.

There are many variables to a GL policy and it is important that the insured read their policy carefully.

(Note: General Liability should not be confused with Directors and Officers Liability (D&O) coverage. D&O insurance
indemnifies an organization and its officers for allegations for wrongful acts resulting from the “management and
governance” of an organization.)

For an application or questions, please contact Council Services Plus, Inc., 518-434-9194 ext. 128 or Toll free at 1-877-
501-4277.