Avoid These Mistakes When Buying Nonprofit Insurance

A nonprofit organization faces unique risks that mean that a standard policy will not fit the bill.

When it comes to insurance, there is no such thing as a one-size-fits-all policy, especially when it comes to nonprofit insurance. The specialized risks that these organizations face must be addressed with a customized and comprehensive policy, unique to its needs and budget. With this tailored coverage, your nonprofit will not be on the hook for financial and legal damages that it may face during its lifetime.

To help you select the right policy for your needs, be sure to avoid these common mistakes when selecting coverage!

Mistake No. 1: Assuming general liability protects volunteer risks.

Protecting your volunteers is crucial to your organization’s success. While general liability covers many situations, it does not always protect your volunteers. If your nonprofit is proven negligent in the case of a volunteer’s injury, you should be covered. However, if the injury is not a direct result of negligence on your part, a separate volunteer liability policy must be carried to mitigate financial responsibility.

Mistake No. 2: Not carrying sexual molestation and abuse coverage.

Many nonprofit organizations serve vulnerable populations, including children, the elderly, people with special needs, and more. While these claims and lawsuits are fairly uncommon, the protection is still needed. These cases can be extremely high profile, and cause a huge amount of damage to an organization. What’s more, these cases are rarely covered by general liability insurance, so your organization should ensure it is adequately protected.

Mistake No. 3: Foregoing cyber liability coverage.

While there are many different facets of the nonprofit that needs to be covered, cyber liabilities often go overlooked. Unfortunately, we are in the digital age where information can quite easily be compromised. No organization is immune to these breaches and damages can exceed hundreds of thousands of dollars.

You’ll want to ensure that your nonprofit organization is rightly protected. Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298. Make sure that your nonprofit is properly covered. We will work with you to ensure you are getting the most out of your coverage.