How Do I Insure My Nonprofit?

How Do I Insure My Nonprofit?Insuring a nonprofit may not be as obvious as insuring a regular business, but it’s definitely possible. 

Nonprofit executive directors face challenges when it comes to insuring their nonprofit. Nonprofits fill in the niches in the market that ordinary businesses don’t feel is worth the risk–but you understand that there is a cause that needs doing. Understanding the unique risks that your nonprofit can encounter is the key to purchasing proper protection. Here are a few commonly asked questions about insuring a nonprofit that may help you get started on the right foot!

Q: What risks exist for nonprofits that need to insured?

A: Nonprofits typically should consider purchasing insurance to protect the leased or owned property. If the property is damaged, they should be able to replace their income. This is called business interruption coverage.

Q: What challenges do nonprofit executives face when it comes to insurance?

A: They have a number of things that include:

  • Funding sources (governments, foundations, individuals and corporate donors)
  • Communities of operation
  • Clients served
  • Nonprofit employees and volunteers
  • And regulatory and legal obligations

Q: What’s the biggest mistake nonprofit executives make when purchasing insurance?

A: Possibly the biggest mistake they make is considering only the premium costs: the costs they have to pay before a loss occurs. You should compare how well the insurance and the risk management program will respond when something bad does happen.

Q: How often should nonprofit executives review their policy?

A: If things are going smoothly and there are no calls for concern, the insurance agent should be communicating how they’re scanning the market and getting the most competitive prices.

Insuring your nonprofit shouldn’t have to be something you have to worry about. Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298. We will work with you to ensure you are getting the most out of your coverage.