What Is Covered by Labor Union Insurance?

Labor unions in the United States are nonprofit entities, but they are not like other nonprofits. Unions have their own designation under the law, and as 501(c)5 organizations, their rights, obligations, and fiduciary responsibilities to members are very different from the activities of groups that are formed for philanthropy, charity, or political organizing. That means labor union insurance needs to be very different from other nonprofit insurance coverage as well.

Professional vs. General Liability Coverage

For the most part, your general liability policy can be a standard issue device that covers the basics of liability coverage for your membership hall or office facilities, some professional liability, and any third party or public liability coverage you need. Union-focused professional liability coverage, including D&O insurance, is a necessary add-on because the professional liability portion of a general policy is less coverage than a labor union typically needs. This is because general policies limit each coverage area to ensure none of them can individually max out the policy coverage. So, what is covered by labor union professional liability policies?

  • Union-related liability exposures relating to duties to the membership, including collective bargaining and fair representation of all members
  • Financial management exposures related to running a union to protect your directors, officers, and trusted staff members as needed
  • Personal injury protection that includes libel and slander
  • Possible individual labor leader coverage as needed

To learn more about limitations, policy maximums, and other details, you need to get a quote from a company that specializes in providing labor union insurance. The sooner you get a quote, the sooner you can start comparing it to your current policy.