Nonprofits are big businesses that have even bigger influences in our communities and the missions they serve. But did you know the influence they have on the job market?!
Despite recent changes with regards to the 2017 Tax Cuts and Jobs Act, and the potential for negative impact on non-profit funding, the non-profit sector doesn’t show signs of a slowdown. The 2019 Nonprofit employment report presents nonprofits as the third largest workforce featuring twice as many workers as the nation’s transportation, wholesale trade, and finance and insurance industries. That is a lot of people employed and a lot of income generated as one of the largest employment forces in the nation. Talk about a force to be reckoned with!!
What kind of risks does that robust of a work force present from an insurance standpoint? It is of upmost importance to have the proper insurance policies in place to protect not only your organization, but your organizations greatest asset, its people.
Key Coverage Components for Nonprofits
WalkerHughes own, Matt Wilhelm is not only involved with several local area non-profits himself, he also specializes in insuring nonprofit organizations and shares with us the importance of selecting an agent who understands the possible unique liability exposures and represents insurance carriers who offers coverage tailored to the specific exposures facing non-profit organizations.
Nonprofit organizations typically involve a combination of collaboration with staff, volunteers, boards of directors, clients and donors. With so many moving parts, people, and roles within these organizations, it is important for staff members and volunteers to have an avenue to educate themselves and understand their possible liability exposures and loss prevention techniques. Orientation and training programs are incredibly important as organizations on board different positions and volunteer groups. It is also important to implement risk management strategies to prevent or reduce your exposures.
When we think about insurance coverage focused towards the organization’s ‘people’ Employee Benefits, Workers Compensation and EPL quickly come to mind. While those lines of business are very important to all businesses, there are additional exposures to consider when evaluating if your organization is adequately covered under your current insurance program. Matt advises his nonprofit clients that they need to address insuring their Officers and Board members through Directors & Officers Liability coverage. Many times, non-profits and even for-profit businesses might not realize their decision makers can be held personally responsible for the decisions they make within the scope of their involvement for the organization. Protect not only your organization’s mission, but your board member’s personal assets with this important coverage.
Let’s switch gears on the ‘people’ front and think about the functions the people within your organization might preform on behalf of the organization. Do staff members and volunteers drive their personal vehicles while preforming duties for the organization? Matt suggests his clients cover that possible exposure for the organization by carrying Hired and Non-Owned Auto Liability coverage. Do staff members or volunteers ever carry the organization’s property or equipment off-site for special events? While a General Liability policy would cover Business Personal Property or contents while on premises, Matt recommends evaluating this exposure and insuring the organizations property while off-site through an Inland Marine policy when applicable.
WalkerHughes is Here for You
The Indiana University Nonprofits Project reports that there are 1.5 million nonprofit organizations registered with the IRS in the United States and estimates there are 2.5 million nonprofit organizations nationally. These organizations are all dedicated and committed to their unique missions and work diligently to provide services, programs and benefits to their communities. Whether operating in the arts, culture and humanities sector or the health and human services, WalkerHughes is dedicated and committed to serving nonprofit organizations and their unique insurance exposures.
If the information within this post sparks any questions regarding your current insurance program or thoughts regarding your non-profit organization’s operations, we are here to help! There are many things to consider that can be tailored specific to your operations and Matt is here to partner with non-profit clients to uncover their unique needs. Matt can be reached at m.wilhelm@walkerhughes.com.
