Nonprofits: Unique Insurance Coverage for Unique Needs

What special insurance considerations does your organization have? If you are a nonprofit, the list might be lengthy. You provide unique services and therefore have unique needs. And it’s important to keep these in mind as you set up your insurance coverage. Following are several areas that nonprofits often overlook:

Cyber liability insurance: It can be tempting to assume only for-profit businesses are at risk from cybercrime, but this can be a costly assumption. In our technology-driven society, everyone is at risk. If you take donations online or store donor data digitally, this coverage is especially important.

Funds transfer fraud: This typically involves an outside party hacking into your financial accounts and illegally transferring funds. What’s important to note is that this crime isn’t covered by cyber liability insurance; set up a separate endorsement for this coverage, which is essential to protect your financial assets.

Volunteer coverage: Does your organization depend on volunteers? If so, potential volunteer injuries must be considered. Since they will not be covered under workers’ compensation or general liability, other coverage must be obtained. A separate volunteer accident policy is needed. And if volunteers use their vehicles for your services, non-owned auto coverage should also be in place.

International insurance: Do you partner with organizations overseas or send employees on international trips? Is much of your work conducted internationally? If so, an international general liability policy is critical.

Nonprofit tip: Review your policies each year with my office to ensure you have the proper coverage for your dynamic organization.