Every organization needs liability coverage, but it can be easy for non-profits to overlook a type of liability insurance protecting their corporate body as well as their leaders.

Non-profits need insurance to protect themselves from financial loss and liability that can arise during normal operations. This insurance can help cover expenses while affording donors and stakeholders peace of mind. The types of insurance a non-profit may need depend on many factors, including:

• Legal action could have devastating financial consequences for non-profits that often rely on donations and grants. 
• Workers’ compensation/accident insurance can pay for medical expenses, disability, and death benefits for employees injured on the job.
• Cyber liability insurance can protect non-profits from financial losses that may occur after a data breach or ransomware attack.
• The risk of injury to volunteers and third parties can vary depending on the type of operation the organization runs. For example, non-profits that engage in counseling, vocational training, or other kinds of instruction have significant professional liability exposure.
• Non-profits maintaining a positive public perception is key in obtaining grants and charitable donations, so protecting its reputation is essential.

Also, directors and officers liability (D&O) insurance becomes especially important to non-profits because many individuals take on these roles with limited experience, lacking the proper knowledge and appreciation of their legal duties and responsibilities related to the organization.  Non-profit leadership can become a target for litigation related to wrongful acts, such as mismanagement of resources, employment issues, or failure to fulfill fiduciary duties.  

D&O coverage protects those individuals against personal losses, should they be sued as a result of serving in their roles, and also can cover the costs stemming from legal fees, settlements, judgements, and wrongful allegations brought against the non-profit.  

Being smart about non-profit insurance proves that the notion, “No good deed goes unpunished” doesn’t need to be true.  A better idea is that, “No good deed should go unprotected.” Evergreen offers exceptional expertise in coverage for non-profits.  Contact our professionals today to learn more.

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Evergreen Insurance provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.