Running any type of nonprofit organization requires resourceful budgeting and comprehensive risk management strategies. This is particularly true of organizations whose mission advancement relies heavily on grant-funded activities and volunteer-driven initiatives. Here are some ways to manage your organization’s risk exposure while protecting its fiscal well-being.
If your organization doesn’t carry insurance that covers the full scope of its operations, the financial impact of a legal claim or an unexpected loss could be potentially devastating. When your executive team and board of directors plan out insurance coverage as a part of your annual budget, it’s important to carefully review all of your available coverage options.
Review Your Coverage Needs with an Expert
In order to thoroughly understand your risk exposure and coverage level needs, you should work with an insurance provider who is experienced in working with nonprofit organizations. In addition to general liability insurance, almost all nonprofit organizations need to carry directors and officers insurance. This type of policy will protect your individual executives and board members in the event of a legal claim made jointly and severally against the organization and its directors and corporate officers. Another important aspect of nonprofit organization risk management is ensuring that your insurance coverage elections will safeguard volunteers’ activities.