Non-Profit Organizations

With each decision they make on behalf of your organization, directors and officers (D&O) of nonprofits assume a level of risk. In the event of a claim, nonprofit 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.

Nonprofits 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 nonprofits choose to insure their volunteers under a stand-alone insurance policy.  

Nonprofits are at risk for allegations of sexual assault due to the unique characteristics of these organizations (e.g., frequent, unsupervised interactions between children and trusted adults). Whether legitimate or not, sexual abuse allegations involving employees, volunteers, or directors and officers can have catastrophic consequences for your group or organization.

Property—including your building, fixtures, office equipment, data, signage and similar items—play a key role for your organization. And, in the event of a loss caused by fires, theft, vehicles or vandalism, your nonprofit 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. Add an answer to this item.

If your nonprofit provides counseling, 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 nonprofit could face legal action. 

As more and more nonprofits use databases to keep records of members,   clients, volunteers and donations, cyber  exposures will continue to increase. In fact, nonprofits are a common target   for cybercriminals, as these organizations often process high-volume checks   and credit/debit card information when taking donations. In addition, volunteers   and employees who are improperly trained on computer and data safety could leave   your organization exposed to ransomware, viruses, phishing scams and malware.