Charities and nonprofit organizations are often vital parts of the communities they serve. The services and resources they provide can be instrumental to the health, well-being, and support of hundreds of people. But even with the best intentions comes risks.
You could probably guess that general liability, commercial property, and maybe even commercial auto policies are needed for most of these organizations. But what about other risks that need to be covered? Here are a few that nonprofits and charities should take into consideration:
Cyber Liability
Many organizations maintain sensitive data about those they serve. This may include medical information, personal details, addresses, and more. Having cybersecurity measures in place to protect this data is critical. But just as critical is having the right cyber liability policy in place. A data breach can cost thousands of dollars, even for a small organization. To help you respond and recover, consider a standalone cyber policy that provides the right coverage for your specific risks.
Directors & Officers
Your organization likely has a group of volunteer leaders that help support the decisions and guide you in fulfilling your mission. However, they may be held responsible for some of those decisions if they have negative outcomes. Directors & Officers (D&O) coverage may help with defense costs, settlements and judgments associated with claims against nonprofit organizations. It may also help protect their personal assets should legal matters implicate them.
Vulnerable Groups
If your nonprofit or charity assists with support for the elderly or children, it is an unfortunate reality that there is some risk for abuse. There are professional liability coverages that may help protect your organization if allegations of abuse occur. Some may be specific to the type of charity work you perform, and it is best to consult with your agent on what is best suited for your risks. This may assist employees in the case of false allegations as well, even potentially providing defense funds and lost wages.
Other Coverages
In some cases, insurers may offer specific coverages or umbrella policies that are more custom to the risks a charity or nonprofit is facing. Such coverages may help better protect your organization, your leadership, and the communities you serve.
Having an insurance agent who understands the risks of your charity or nonprofit is extremely important. The services you provide are often a lifeline for the people who receive them. Not having the right insurance may leave the work you with vulnerabilities you never considered. We’d be honored to help you review the risks and understand the coverage options you have to keep your organization better protected!