Your non-profit is dedicated to serving its mission. You go above and beyond to protect and advance it. But for all the focus put on helping others, you may not have a true focus on what you need to do to protect yourself.
“Unfortunately, many non-profits don’t realize until it’s too late that they have the same liability issues their for-profit counterparts have,” says Paul Siragusa, Senior Vice President of Commercial Lines Underwriting at Philadelphia Insurance. “Anything that a for-profit company can be sued for, a non-profit can as well. And, they may have additional risks to be concerned about, especially if they are in the human or social services sectors.”
Considering that non-profits are the third-largest employment industry in the country, employ over 11 million people, and also use over 60 million volunteers, claims opportunities grow exponentially. That’s why we help non-profits understand the types of coverage holes hidden from their view first, before they can prevent risk exposure. But what types of exposures could they find?
Here’s a list of ten real exposures and damages incurred by non-profits that illustrate just how widespread the risks are.
Professional liability, abuse/molestation, fundraising, discrimination, fiduciary liability, and more – these expensive real-life non-profit claims may be more common than you think.
Takeaway: Unexpected damage to a non-profit’s building and equipment can occur at any time.
Takeaway: Similar unfortunate, unplanned consequences could happen to anyone maintaining their own properties. However, non-profits that provide landscaping services to others through an integrated employment program could face significant additional liabilities.
Takeaway: Fundraising activities open up other far-reaching concerns about liability and safety measures for guests and staff.
Takeaway: Claims a non-profit makes about itself or its services could negatively impact others who depend on them if they’re embellished or not true.
Takeaway: There are always going to be disgruntled employees who retaliate when action is taken against them.
Takeaway: Someone will always challenge employment practices, whether the claim is valid or not.
Takeaway: A series of small losses can have a significant impact on an organization’s financial health.
Takeaway: Threats against privacy and information leaks are always in the news. But it’s not always hackers and cyber security that non-profits need to worry about – it could be employee mishandling.
Takeaway: Unfortunately, although unpredictable, workplace violence has become a common threat.
Takeaway: Because of their unique missions, non-profits may come under scrutiny and suffer financial repercussions more often than they could imagine.
One: That claims can happen anytime, anywhere, and for any reason.
Two: In many instances, the hit to the non-profit’s reputation can do incalculable damage if not handled correctly.
Three: For those organizations that suffered a large loss, the organization’s costs far outweighed the insurance premiums – making it well worth the value for the protection provided.
Getting the right coverages is about more than avoiding risk, it’s about building a strong
and resilient business. We believe in creating a deep partnership with those we serve that
goes beyond insurance. We believe that if you’re free to look ahead without fear of what’s
coming that you will achieve more and dream bigger.