Why You Should Update Your Professional Liability Insurance

Your nonprofit may be starting but that’s no excuse to not update your professional liability insurance. 

Let’s take a stroll through memory lane. Back to when you first started out. You didn’t need much–just a computer, a desk, and a phone so you could drum up new business. But now that you are buried under countless projects and paperwork, it may be time that you hire an employee. Going from sole proprietor to boss in a successful nonprofit is a big moment. While it’s definitely a step up, it’s not without risks. Here are a few reasons why you should update your professional liability insurance for your nonprofit organization.

Why to Update

Let’s say you hire and employee and after they have gotten acclimated to your nonprofit, you decide to send them to meet a client. The employee then advises the client on a project that turns out to be a bust. The delays end up costing your client thousands of dollars, and in a fit of rage, they sue your business.

It won’t be your employee that gets in trouble, it’ll be you. Why? Because you are responsible for your employee’s work.

But employee negligence is just one example, and only one of the things professional liability covers. It can also cover errors that you make and that clients accuse you of.

Things like:

  • Making a mistake in your work.
  • Failing to honor and respect the contract.
  • Giving poor professional advice.

This coverage will usually extend to your employees and they may definitely help pay for lawyer and court fees.

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.