Nonprofit Insurance

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Nonprofit Insurance Suggestions that May Save Your Organization

Non-profits are different in many respects from other businesses, and one of those areas is risk and the need for nonprofit insurance coverage that protects the unique needs of the organization. In fact, not too long ago it was challenging and sometimes impossible, for nonprofit organizations to obtain adequate coverage. That has changed as insurance companies now view nonprofit organizations as a specialized sector of the overall business community, along with the specialized insurance and risk management needs these organizations have.
Nonprofit insurance coverage competition
Rather than try and "fit" non-profits into standard business policies, insurers now offer coverage …show more content…
For instance, business policies frequently cover theft by employees, but do not mention volunteers. Also, exposures that nonprofits must cover just do not exist in most general businesses, and standard policies don't cover things like sexual abuse or a blanket coverage for the nonprofit entity. These are vital components of good nonprofit insurance coverage that might be overlooked by an insurance agent or broker without significant nonprofit experience.
Insurance and risk management
Nonprofits once enjoyed the protection of charitable immunity, but that is no longer the case in most states; today only three states provide liability protection to each volunteer. Plainly, more coverage is needed to protect nonprofit organizations from lawsuits that can drain needed resources.

Though a general liability policy can protect basic exposures, like the property or simple operations, it likely will fall woefully short on most accounts and leave the nonprofit open to suits. Similarly, a directors and officers (D & O) policy is extremely limited, and will not protect against most employment-related lawsuits. Each nonprofit organization needs to take a candid look at how they can reduce their risks to save them money while affording them the appropriate …show more content…
Those can include property, capital, employees and volunteers, along with everything that your organization does. All of these things have some inherent risk built in, and the list of things that can possibly go wrong can be extremely lengthy. Here are just a few situations to consider - disgruntled employees, discrimination or sexual harassment, injury to clients, vendors or members of the public that visit your premises, injured volunteers, auto accidents, injuries or damages during fundraising events. Luckily, these types of events are not common, but when they do happen, they can be quite costly without the proper insurance coverages in
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