Avoid These Mistakes When Placing Nonprofit Insurance

Common mistakes nonprofits make it when it comes to insurance.

We all make mistakes, even in business. It’s a part of life because humans are imperfect. Unfortunately, making certain mistakes can spell bad news for your nonprofit organization. When it comes to insuring your organization, there are a few certain mistakes that you should (and can easily) avoid!

Mistake No. 1: Forgoing cyber liability insurance

We live in a digital era, and that means that everyone is at risk these days – including nonprofits. This is particularly true for those who take donations through their website, do seasonal fundraising online, or stores data online. The risks are significant, but cyber liability insurance can help.

Mistake No. 2: Thinking volunteer risk is covered under their general liability insurance.

Most nonprofits rely on the hard work of volunteers – yet don’t realize that they often aren’t properly insuring their risk. If a volunteer is injured while working for an organization, their suit may be covered if the nonprofit can be proven negligent. If that’s not proven, a volunteer accident policy will provide this coverage, but it has to be purchased separately.

Mistake No. 3: Foregoing directors and officers insurance.

Small nonprofits may overlook D&O coverage, thinking that they are too small to need this type of protection. D&O coverage protects the directors, officers, and trustees of an organization in case a lawsuit names them directly. Without this coverage, a nonprofit puts personal assets and bank accounts on the line. No matter how small a nonprofit, this coverage is essential.

Becoming aware of common insurance mistakes can help you avoid making the same missteps with your nonprofit organization. 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.