As a non-profit leader, your focus is on your mission, but your responsibility is to protect the organization’s assets, people, and reputation. Here are the most common questions we hear at Emerge Insurance Agency regarding non-profit risk management.
1. Does our General Liability policy cover our volunteers?
Not always. Most standard General Liability (GL) policies cover “employees” but may not automatically include “volunteers” as insured parties. This means if a volunteer is sued for something they did while working for you, they might not have a legal defense. Furthermore, if a volunteer is injured while helping, GL usually won’t pay for their medical bills.
The Fix: Ask us about adding a Volunteer Accident Policy or ensuring your GL explicitly includes volunteers as “Additional Insureds.”
2. We are a small 501(c)(3); do we really need Directors & Officers (D&O) insurance?
Yes. D&O insurance is arguably the most important strategic coverage for a non-profit. It protects the personal assets of your board members and executive staff from lawsuits alleging “wrongful acts” in managing the organization (such as mismanagement of funds or breach of fiduciary duty). Without it, you may find it very difficult to recruit high-quality board members.
3. What is “Silent Exclusion” regarding Abuse and Molestation?
This is a major risk. Many generalist agents sell a standard business policy that looks complete but contains a “silent exclusion” or a very low sub-limit (e.g., $25,000) for claims related to Sexual Abuse or Molestation. If your organization works with children, seniors, or vulnerable adults, you need a specific rider with a limit that matches your General Liability (typically $1,000,000+).
4. If a staff member or volunteer uses their own car for a non-profit errand, are we covered?
Only if you have Hired & Non-Owned Auto (HNOA) coverage. If your volunteer is driving to the bank or picking up event supplies and causes a serious accident, their personal insurance will likely be exhausted quickly. The victim’s attorney will then sue your non-profit. HNOA protects the organization in these specific scenarios.
5. Does our property insurance cover “Special Events” held off-site?
Usually, no. Your standard property and liability policy is typically tied to your “Premises” (your office or building). If you host a gala at a hotel or a 5K in a park, you often need a Special Event Policy to cover the specific liability and liquor risks associated with that venue and date.
6. Why is Cyber Insurance a “Strategic” necessity for non-profits?
Non-profits are often targeted by hackers because they hold sensitive donor data (credit card info and SSNs) but often have less robust IT security than for-profit corporations. Cyber insurance doesn’t just pay the “ransom”; it pays for the mandatory legal notifications, credit monitoring for donors, and a PR firm to help repair your reputation after a breach.
7. What is “Employment Practices Liability” (EPLI), and do we need it?
EPLI covers lawsuits related to the “employment process”—including wrongful termination, discrimination, and sexual harassment. Many non-profits believe their “mission-driven” culture protects them from these claims, but statistics show that non-profits are actually more susceptible to employment-related litigation than many small businesses.
How “Audit-Ready” is your organization?
Don’t wait for a board meeting or a claim to find out where your gaps are. At Emerge Insurance Agency (904-677-5881), we provide a Non-Profit Risk Deep Dive that aligns your insurance with your strategic plan.
