Avoid These Costly Mistakes When Getting Nonprofit Insurance

Protect your nonprofit fully by avoiding these common mistakes.

As a nonprofit, you know you need some insurance coverage to safeguard the livelihood of your organization. Many nonprofit owners are under the misconception that there is blanket coverage that is a one-size-fits-all solution. Unfortunately, this doesn’t exist. This is why it’s crucial that you take into consideration your risks, liabilities, and exposures so that you can secure more reliable insurance. Take a look at these common mistakes nonprofits often make that can end up costing.

Forgoing cyber liability insurance. In this digital era, cyber liability insurance is a must. This is especially true for an organization that takes donations through their website, does seasonal fundraising online, or organization data in a digital format. This coverage is incredibly affordable but offers valuable protection if the worst should happen.

Thinking volunteer risk is covered under general liability. Your volunteers may mean the world to you. If so, you should ensure they are adequately protected. Most often, you need to purchase a volunteer accident policy or add volunteer coverage to your workers’ compensation policy. Don’t assume they are covered under your general liability policy.

Forgetting D&O coverage. Small nonprofits are the worst offenders for neglecting Directors and Officers insurance (D&O insurance). Without D&O coverage, nonprofit leaders put their personal assets and wallet on the line with every decision they make on behalf of their organization.

These mistakes could end up costing your nonprofit. Are you looking for more ways to protect your nonprofit? Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298.