Managing a nonprofit comes with many possible liability exposures. Depending on the type of organization, employees and volunteers may work directly with multiple types of vulnerable populations including children, families, elderly adults and people with disabilities. Because mistakes can occur even with the best protocols and planning in place, responsible organizations invest in nonprofit insurance to legally protect themselves against liability claims. Common liability risks include:
Directors and Officers Liability
If one of your nonprofit’s directors or officers faces a liability claim due to a mistake they made while working with clients in your organization, insurance can offer protection in this type of scenario. As one of the most common claims, it can happen anywhere.
Abuse and Molestation Liability
For organizations that work directly with the public, there is also the risk of facing abuse and molestation charges. Because of the severity of these situations, having a reputable insurer on your team can help guide you on what to do.
Employment Practices Liability
Without employees and volunteers, nonprofits would cease to exist. As the individuals who do the filing, organizing, cleaning, caring and maintaining the organization, they also face many possible liability exposures. For this reason, employment practices liability is also necessary.
Nonprofits serve an important purpose. Having adequate insurance protection can help you ensure that yours runs as smoothly as possible.