Nonprofit Insurance Can Be Spoooooky!

But it doesn’t have to be.

Insurance words alone can make your hair stand on end:

  • Waiver of subrogation…. oooooooohhhh
  • Indemnification…. Boo!!!
  • Coinsurance…. eeeekkkk!
  • Personal/Advertising Injury…. Oh no!

We fear what we do not understand. I get it. I feel the same way when I go to a mechanic. I don’t know my hoses from my spark plugs.

More spooky to understand it or be caught without it?

What’s even scarier is not having correct coverage when the goblins jump out from behind a wall.

Some situations that can be really unnerving:

  • Someone steals your laptop, complete with personal identifiable information regarding your donors and clients. How’s your privacy protection?
  • Someone sues you for wrongful termination. How’s your D&O/Employment Practices Liability protection?
  • An employee gets injured, even though there are only 2 or 3 of you. Did you know you still had to provide workers comp benefits? Just because you might or might not to have workers comp coverage for a particular threshold of employees, you might still be called to pay for injuries and short-term disability.
  • You don’t have any licensed professionals, but you still give referrals to services and miscellaneous life advice. What if that advice is taken, things go awry, and the client blames you. Did you cheap out on miscellaneous social service professional liability?

These are frightful times. Never have the services of nonprofits more needed. But never have the exposures to risk or liability been more varied. It’s a good idea to consider the people and things that are vital to your organization and find out the best ways to cover them.

So today, when you’re plotting your Halloween-themed lunches, dinners, donor pushes, etc, consider where risk ghouls are lurking around your operations.

And always…. always find a thorough insurance professional who can help you uncover gaps in coverage.

Questions

What are elements of insurance that confound you?

What is your biggest fear regarding managing your risk management and insurance programs?

 

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