Nonprofit organizations and charities have distinct needs compared with other sectors of the economy. To get perspectives on the risk management and insurance problems that nonprofit managers face, I turned to several independent insurance agents and brokers who are experienced in the nonprofit market.
Blind spots and misconceptions
Donna Haynes, CPCU, of Pilkey, Hopping & Ekberg, Inc., Tacoma, Wash., noted that charitable organizations and volunteers often need information about the nature of various coverage forms and guidance on policy selection.
Nonprofits have additional layers of volunteer risks
As employers, charities face the usual array of risks, but their board members and other volunteers present unusual risks. “Employment practices liability can include third-party coverage in case some board member or volunteer commits an act such as sexual harassment or discrimination against a third party,” said Johnson of Western Dakota Insurors. “This usually comes with the directors and officers coverage at a low premium.”