The specialized risks that nonprofits face must be addressed with the proper risk management strategies and a customized Nonprofit Insurance Program. This specialized expertise will ensure that the organization is sufficiently covered and no surprises will leave the nonprofit on the hook for financial damages. With that, here are some common mistakes to avoid when purchasing nonprofit insurance to share with your clients.
Foregoing cyber liability coverage.
While there are many different facets of the nonprofit that need to be covered, cyber liabilities often go overlooked. However, so much is at stake if personal information becomes compromised. In reality, no organization is immune to these breaches and damages can exceed hundreds of thousands of dollars. Therefore, your clients’ nonprofit cannot afford to forego this essential coverage.
Assuming volunteer risk is covered under general liability.
Volunteers are the backbone of any successful nonprofit, and protecting their best interests is critical. If the organization is proven negligent in the event of a volunteer’s injury, their case will be covered. However, if not, a separate volunteer risk policy must be carried.
Not carrying sexual molestation and abuse coverage.
Many nonprofits serve vulnerable populations including children, the elderly, persons with special needs, and more. While these claims and lawsuits are fairly uncommon, they can be extremely high-profile and cause a tremendous amount of damage to the organization. Remind your clients that these cases are rarely covered by general liability insurance, so ensure they carry the right types of policies to be adequately protected.
Foregoing D&O Insurance.
D&O coverage protects the directors, officers, and trustees of an organization in case a lawsuit names them directly, says FindLaw. Therefore, small organizations, especially those without employees, need to protect their management to ensure they are not sued because of a decision they made on behalf of the nonprofit.
At Domenick & Associates, we have a unique understanding of the nonprofit sector and how to properly secure your clients’ operation. From personal and advertising protection to volunteer coverage, we offer a range of products that are necessary for their success and longevity. For more information about our products, contact our experts today at (855) 745-3636.