The Nonprofit Insurance Q&A

The Nonprofit Insurance Q&AYou have questions about nonprofit insurance, we have answers!

Nonprofit leaders, and Matthew McConaughey, are all too familiar with the concept of Murphy’s Law, stating that anything that can happen, will happen. Or, as it’s commonly versed, anything bad that can happen, will happen. That’s why nonprofits need liability and property insurance, which are critical tools for protecting assets and preserving financial health for when the unexpected happens (and it will happen). However, the insurance world is a very complicated animal and you very likely have some questions regarding how your nonprofit fits into everything. Well, we may have the answers to your questions.

Q: What is general liability insurance?

A: This is the most basic form of business insurance. This is the protection you have whenever you or your business will be held responsible for causing damages to a property or injury to a person.

Q: Once my nonprofit gets insurance, does it have any more obligations to the insurer?

A: Nonprofits need to regularly communicate with their insurance agent and their board or finance committee about the status of financial programs, and funding obligations.

Q: How can a nonprofit protect itself from theft, fraud, or other bad acts?

A: Good oversight of people and resources is going to be your first line of defense against bad things. Every nonprofit with employees should have directors’ and officers’ liability insurance, which includes coverage for “employment practices” (acts directed toward or committed by an employee, such as sexual harassment).

For all your nonprofit insurance needs to ensure you have the coverage you need in case of any injury, lawsuit, or any other covered malpractice, contact Colorado Nonprofit Insurance Agency in Denver, Colorado.