There is no such thing as a one-size-fits-all nonprofit insurance policy. The specialized risks that these organizations face must be addressed with a customized and comprehensive NJ Nonprofit Insurance Program. With this tailored coverage, your nonprofit will not be on the hook for financial and legal damages that you might face. Therefore, here are some common mistakes to avoid when purchasing your nonprofit insurance policy.
Mistake #1: Assuming general liability protects volunteer risks.
Protecting your volunteers is critical to your success. If your nonprofit is proven negligent in the case of a volunteer’s injury, the instance would be covered. However, if the injury is not a direct result of negligence on your part, a separate volunteer liability policy must be carried to mitigate financial responsibility.
Mistake #2: Foregoing cyber liability coverage.
Most businesses are aware of their risks of cyber-attacks. Even if your operation is small, you are not immune to facing a breach. With so much personally identifiable information at stake, your organization can face hundreds of thousands in fines should they become compromised.
Mistake #3: Foregoing D&O Insurance.
D&O coverage protects the directors, officers, and trustees of an organization in case a lawsuit names them directly, says FindLaw. Even for small organizations, management needs to be protected to ensure they are not sued for making a critical decision on behalf of their company.
Mistake #4: Not carrying molestation insurance.
As nonprofits serve a lot of vulnerable populations- including children and the elderly- this policy is a must. While these cases can be fairly rare, the risk of a high-profile case can lead to significant damage for the organization and its reputation. Bear in mind that general liability does not extend coverage to cases of alleged molestation.
While many claims can be foreseen and managed, not all can be prevented. At David G. Sayles Insurance Services, we understand the risks that many nonprofits face. Our comprehensive policies seek to protect each facet of your operation to ensure you are safeguarded from a variety of financial obligations and claims. For more information, contact us today at (855) 977-1842.