Updated: Aug 14, 2019
"Only when the tide goes out do you discover who's been swimming naked."
- Warren Buffett
Are you swimming naked?
Running a nonprofit has its own risks for founders, executive directors, volunteers, donors and all parties involved. If you're running or supporting a nonprofit organization that doesn't have insurance, you're swimming naked.
I know - who has the time or money to consider investing in insurance, however let's take a moment to talk about what insurance is. Insurance in its simplest form is protection from potential risk.
What are the potential risks faced by nonprofits?
Here are a few:
Professional Liability Risk - emerging exposures and losses resulting from negligence or errors and omissions in the performance of professional services.
Nonprofit Directors and Officer Risk- the threat of litigation against board members and the organization from vendors, donors, competitors, employees and government regulators.
Employment Practice Claims- HR-related claims and lawsuits associated with harassment, discrimination, wrongful termination, and usually includes claims made by third parties.
Workers Compensation- a lawsuit that may arise in the event a worker is injured on the job
Property Damage or Loss- damage or loss to the buildings, as well as the personal business property you own, including office equipment, inventory, and electronics, among other things.
Motor Vehicle Accidents- liability for injuries to others and damage to the vehicles of others if your organization is involved in an at-fault auto accident or physical damage coverage for damage to your owned vehicles. If your employees or volunteers use their own vehicles for the business of your organization then you will also need to consider Non-Owned Auto coverage.
General Liability- anything anyone wants to sue you for at any time but specifically bodily injury and property damage that occur in the course of your operations.
These things do happen from time to time. Don't let the tide go out if and when a catastrophic event happens and realize you're swimming naked.
Find a company that specializes in providing insurance policies for nonprofit organizations that can help you find the right coverage to meet your needs (and budget).
Shavonn Richardson is Founder of Think and Ink Grant Consulting™ www.thinkandinkgrants.com. She is a grant writer, nonprofit consultant, speaker and an active member of the Grant Professionals Association.