Non-profit organizations provide essential social services that benefit the community and their members. However, there are still a number of potential risks that can affect your employees, assets, volunteers, directors and officers, and most importantly, your mission.
Countless claims can be brought against your non-profit. For example, should an individual injure themselves at one of your events or on your property, they could bring a claim against you. The list below provides an overview of these risks and more—helping you identify potential blind spots in your risk management and insurance programs.:
Directors and Officers:
With each decision they make on behalf of your organization, directors and officers (D&Os) of non-profits assume a level of risk. In the event of a claim, non-profit leaders can suffer damage to their reputation and personal finances. What’s more, D&O claims can come from a variety of sources, including employees, clients, volunteers, regulators and donors.
Volunteers:
Non-profits depend heavily on the kindness of volunteers to successfully carry out their mission. However, should one of these individuals injure themselves while serving your organization, you could be held liable for any damages. What’s more, insurance coverage for volunteers isn’t always available under general liability policies. Accordingly, many non-profits choose to insure their volunteers under a stand-alone insurance policy.
Property:
Property—including your building, fixtures, office equipment, data, signage and similar items—plays a key role for your organization. And, in the event of a loss caused by fires, theft, vehicles or vandalism, your non-profit can suffer major financial damages. What’s more, a single incident can affect multiple aspects of your property, compounding costs and downtime for your organization.
Professional Liability:
If your non-profit provides counselling, training, or other kinds of instruction or services, professional liability exposures can be substantial. When providing these services, any errors and omissions—whether intentional or not—can create serious legal concerns. Specifically, should your organization, board of directors, employees or volunteers provide advice or make decisions that harm a third party, your non-profit could face legal action.
Automobile:
Depending on the services your non-profit offers, employees and volunteers may be required to operate a vehicle on your behalf, creating automobile exposures in the process. While important for transporting volunteers, hosting successful events and carrying out other organizational tasks, the improper use of a vehicle can lead to potential accidents and major insurance claims. What’s more, if you allow employees and volunteers to use their own vehicles for work, standard auto policies are often not enough.
