Avoid These 8 Mistakes When Placing Nonprofit Insurance
This post is part of a series sponsored by Charity First.
Standard appointed markets are not set up to deal with the specialized risks presented by many nonprofits—there is no one-size-fits-all solution for nonprofit
coverage, even if the nonprofit is small.
Specialized expertise is often essential to ensure that nonprofits get the right coverage. And that expertise isn’t easy to find. Not all independent agents have the experience required, and when they don’t, crucial aspects of coverage can get overlooked. Here are a few common mistakes to avoid when setting up coverage.
Banks have to compensate the victim when this happens to an individual—but not to a company or organization. Making matters worse, it’s a common misconception that this type of fraud is covered by crime or cyber liability insurance. It’s not; it needs to be purchased as a separate endorsement.
Volunteer coverage can also be added to a workers’ compensation policy, but this can have a negative impact on the nonprofit’s loss history and experience modifiers, potentially resulting in higher premiums. In addition, many workers’ compensation carriers do not cover volunteer injury claims.
Full coverage for volunteer activity often involves a complex combination of insurance, including volunteer accident, general liability, non-owned auto, and sexual abuse and molestation liability.
Even small nonprofits can present large risks. Insurance agents with in-depth expertise in this market can help these organizations protect their board members, employees, volunteers, and the people they serve.
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