Q&A: How Do I Insure My Nonprofit?

Q&A: How Do I Insure My Nonprofit?Nonprofit executive directors often find themselves having trouble purchasing an insurance policy for their nonprofit organization. 

There are more than 1.4 million nonprofits operating in the United States and they serve thousands of niche industries and interests and just causes. Each nonprofit, being unique, has unique risks and understanding those risks your nonprofit can encounter is the key in purchasing proper protection and increasing transparency. Many questions arise when looking for insurance, so here are the most common questions (and the corresponding answers) when it comes to insuring your nonprofit.

Q: What unique challenges or obstacles do nonprofit executives face when it comes to insuring their nonprofit? 

A: Nonprofit executives have to juggle quite a few responsibilities and resources against the needs of:

  • Served clients
  • Communities of operation
  • Nonprofit employees and volunteers
  • Regulatory and legal duties
  • And funding sources (governments, foundations, individuals, and corporate donors)

Q: For what risks do nonprofits have to insure?

A: Each nonprofit is unique, so it’s hard to pinpoint all risks for all nonprofits. Typically, however, they should consider purchasing insurance to protect owned or leased property, and to provide a steady flow of income if the property is damaged and they have to cease operations until it is repaired.

Q: Are there any risks that nonprofit organization often overlook?

A: Just a few years ago, the number one overlooked insurance was employment practices liability. Today, with the rise of the internet, the insurances that are most often overlooked by nonprofits are data breach and cyber liability exposures.

The only way one learns is by being inquisitive and asking the right questions. In order to protect your organization, these are the questions that will put you on the right foot. 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.