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A warning if your not-for-profit organization is looking for expenses to cut: Don\u2019t skimp on insurance. Should your nonprofit experience a fire, major theft or other calamity, you\u2019ll be glad you have the coverage. Of course, you may also be required by your state, certain funders, lenders and your own bylaws to carry adequate insurance. Donors certainly expect you to protect their investment in your nonprofit by managing risk with insurance. But to ensure you\u2019re not wasting money, consider what you need \u2014 and what you might not.<\/p>\n
General liability is critical<\/strong><\/p>\n Many kinds of insurance coverage are available, but it\u2019s unlikely your organization needs all of them. One type you do need is a general liability policy for accidents and injuries suffered on your property by clients, volunteers, suppliers, visitors and anyone other than employees. Your state also likely mandates unemployment insurance as well as workers\u2019 compensation coverage.<\/p>\n Property insurance that covers theft and damage to your buildings, furniture, fixtures, supplies and other physical assets is essential, too. When buying a property insurance policy, make sure it covers the replacement cost of assets, rather than their current market value (which is likely to be much lower).<\/p>\n Depending on your nonprofit\u2019s operations and assets, consider such optional policies as automobile, product liability, fraud\/employee dishonesty, business interruption, umbrella coverage, and directors and officers\u2019 liability. Insurance also is available to cover risks associated with special events. Before purchasing a separate policy, however, check whether your nonprofit\u2019s general liability insurance extends to special events.<\/p>\n Setting priorities<\/strong><\/p>\n Because you\u2019re likely to be working with a limited budget, prioritize the risks that pose the greatest threats. Then discuss with your financial and insurance advisors the kinds \u2014 and amounts \u2014 of coverage that will mitigate those risks.<\/p>\n Be careful you don\u2019t assume insurance alone will address your nonprofit\u2019s exposure. Your objective should be to never actually need insurance benefits. To that end, put in place internal controls and other risk-avoidance policies such as new employee orientations and ongoing training.<\/p>\n It\u2019s about responsibility<\/strong><\/p>\n Your nonprofit is responsible for securing the safety of its physical assets, your employees and (in many cases) individuals who participate in your programs. Contact us to discuss how insurance can fit into your larger risk management plan.<\/p>\n \u00a9 2020<\/em><\/p>\n <\/body> A warning if your not-for-profit organization is looking for expenses to cut: Don\u2019t skimp on insurance. Should your nonprofit experience a fire, major theft or other calamity, you\u2019ll be glad you have the coverage. Of course, you may also be required by your state, certain funders, lenders and your own bylaws to carry adequate insurance. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,10,15],"tags":[8,11,12],"class_list":["post-15231","post","type-post","status-publish","format-standard","hentry","category-articles","category-news","category-not-for-profit","tag-articles","tag-news","tag-updates"],"_links":{"self":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/15231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/comments?post=15231"}],"version-history":[{"count":0,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/15231\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/media?parent=15231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/categories?post=15231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/tags?post=15231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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