Many nonprofit organizations go without the necessary insurance coverages with the notion that they are too small of an operation to really face any real risks. The truth is, not one business is immune to incurring risks, and the nonprofit sector is no different. In fact, a specialized Ann Arbor Nonprofit Insurance Program is required in order to address these exposures that are specific to the industry. In this article, we’ll cover three of the most common misconceptions surrounding nonprofit insurance.
Myth #1: General liability is all I need.
General liability insurance is an essential policy to carry. However, the common misconception is that this coverage will extend to all areas of exposure, including volunteer liability, director and officer crime, sexual misconduct and more. In order for your nonprofit to be adequately secured, you’ll need a portfolio of products, which we are proud to offer as part of our comprehensive coverage plans.
Myth #2: D&O Insurance will cover employment-related claims.
While every policy is different, it’s safe to assume that your directors and officer’s insurance policy will not extend coverage to claims regarding employment. D&O Insurance is meant to protect the decision makers of your nonprofit and release them of any liability of potential wrongdoing, not to protect the organization from wrongful employment practices. If you’re concerned you aren’t carrying enough coverage, speak with your local trusted insurance agent.
Myth #3: I don’t need cyber liability coverage.
Today’s digital age all but coerces you to think about protecting your confidential data and information. If your organization uses cloud-based services to store data, or you keep personally identifiable information from your sponsors and donors on your computers, you need to invest in a cyber liability policy. According to a recent study conducted by IBM, the average cost of recovering from a cyber-attack is approximately $158 per compromised record- that’s a fine you can’t afford.
About Thayer Innes and Freeman Bunting Insurance Agencies
At Thayer-Innes Insurance Agency and Freeman Bunting Insurance Agency, we specialize in providing customized and comprehensive coverage for nonprofits in Washtenaw County and beyond. Our tailored insurance program offers the policies you need to thrive, including General Liability, Business Auto, Employee Dishonesty, Employment Practices Liability, Property coverage, Professional Liability, and many more. For more information about how we can secure your gym business, contact us today at (734) 662-4567.