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Non-profit organizations provide essential social services that benefit the community and their members.
Countless claims can be brought against your non-profit. For example, a volunteer could sue your directors and officers for discrimination or harassment, leading to costly litigation.
Additionally, should an individual injure themselves at one of your events or on your property, they could bring a claim against you. The list below provides an overview of these risks and more—helping you identify potential blind spots in your risk management and insurance programs.
With each decision they make on behalf of your organization, directors and officers (D&Os) of non-profits assume a level of risk.
In the event of a claim, non-profit 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.
Non-Profit D&O Insurance: Examples of Insurance At Work
Non-profits 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 non-profits choose to insure their volunteers under a stand-alone insurance policy.
Non-profits are at risk for false allegations of sexual assault due to the unique characteristics of these organizations (e.g., frequent, unsupervised interactions between children and trusted adults).
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—plays a key role for your organization. And, in the event of a loss caused by fires, theft, vehicles or vandalism, your non-profit 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.
If your non-profit provides counselling, 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 non-profit could face legal action.
As more and more non-profits use databases to keep records of members, clients, volunteers and donations, cyber exposures will continue to increase. In fact, non-profits are a common target for cyber criminals, as these organizations often process a high volume of checks and credit and debit card information when taking donations.
In addition, volunteers and employees who are improperly trained on computer and data safety could put your organization at risk of ransomware, viruses, phishing scams and malware.
Depending on the services your non-profit offers, employees and volunteers may be required to operate a vehicle on your behalf, creating automobile exposures in the process.
While important for transporting volunteers, hosting successful events and carrying out other organizational tasks, the improper use of a vehicle can lead to potential accidents and major insurance claims.
What’s more, if you allow employees and volunteers to use their own vehicles for work, standard auto policies are often not enough.
While the proper risk management practices can reduce certain exposures, no system is 100 per cent effective in ensuring an incident-free workplace. As a result, it’s all the more crucial to work with a insurance broker for non profit organizations in Ontario to not only assess your exposures, but secure the appropriate insurance coverage as well.
The cost of Insurance for non-profit organizations can vary depending on a number of different factors. These include; the size of the non-profit, operations of the non-profit, assets under management, etc. Typically a small community association can start at $700 with premiums increasing from there.
All non-profits will need Directors & Officers insurance to protect their board members’ personal assets while sitting on the board and conducting business as a board member. Otherwise, insurance needs for a non-profit depend on what their operations are as well as if they own any property themselves.
Non-profits need insurance to protect their property and liability against the potential of a loss. Often board members of a non-profit are volunteers and it is important to have D&O insurance to protect their personal assets in the event of a claim.
There are a number of different insurance needs a non-profit would needs depending on the assets and property they own. Perhaps one of the most important is Directors & Officers Liability. D&O protects board members’ personal financial loss that may result from allegations and lawsuits of wrongful acts or mismanagement carried out in their appointed capacity.
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