Common Mistakes in Nonprofit Insurance

If you live in New Jersey and run a nonprofit, you might be interested in purchasing Glen Rock commercial liability insurance in order to protect your organization. But which types of insurance do you need? It’s important to know what types of insurance you’ll need in order to safely run your organization without any pitfalls. Each nonprofit is different and has different needs—needs will vary depending on a wide range of issues, including size and type. There are certain things that you shouldn’t look over, like a D&O policy, in order to keep your assets protected, but that’s not the only one. Check out this list of common mistakes in nonprofit insurance and make sure to avoid them when securing coverage.

 

Funds Transfer Fraud is Not Generally Covered

You might think that funds transfer fraud is covered under your crime policy or cyber liability policy. But it’s actually not, meaning that you have to find another means to get covered. Since nonprofits are especially vulnerable to this type of crime, it’s important that you stay vigilant against the issue. This type of fraud has many faces online that are not always easy to decipher. Make sure you stay ahead of the game by staying protected.  

Volunteer Risk is Not Covered Under General Liability

Since you’re running a nonprofit, pretty much everyone working for you is going to be a volunteer. How do you keep everyone adequately covered? Using volunteers is far more risky than just having employees. Volunteer risk is not covered under your general liability, meaning that you’re going to have to purchase more coverage in order to ensure that your workers will be properly covered for their work.

Don’t Forego D&O Coverage

It’s common for nonprofits to forego D&O coverage. Don’t be one of those organizations. Make sure you have the proper D&O insurance, which will ensure that you’re covered in the case of a lawsuit that may directly name directors in your company.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we strive to protect the investments of homeowners like you. Our comprehensive policies are customized for you to provide the exact coverage you need. For more information, contact us today at (800) 439-0292.