As leaders and board members of nonprofit organizations, you dedicate your time and passion to making a positive impact on the world. But amidst your focus on mission, programs, and service, have you paused to consider whether your organization is fully protected from the risks that could jeopardize everything you've worked so hard to build?

It's easy to overlook the potential liabilities that come with running a nonprofit, especially when they aren't glaringly obvious. But, as they say, it's often what you don’t see that gets you in the end. Let's take a moment to explore a few things that might make you go "hmmm"—important considerations for safeguarding your organization and ensuring that your passion remains protected.

1. Have You Outgrown Your Insurance?

Your organization may have started small, but what happens when you grow? Adding more staff, volunteers, or programs could create gaps in your current insurance coverage. For example, does your liability policy account for the new fundraising event you're planning, or the increased number of people you're serving? Scaling without reviewing your insurance can leave you exposed.

2. Are Your Volunteers Covered?

Volunteers are often the backbone of a nonprofit, but are they properly protected? Many leaders assume that volunteers are automatically covered under general liability insurance, but that’s not always the case. Without the right coverage, you might be vulnerable if a volunteer is injured or unintentionally causes harm while representing your organization.

3. Do You Know the Risks of Accepting Large Donations?

Receiving a large donation or bequest is a great boost for your mission, but have you thought about the implications? Significant asset increases, such as a donated property, can require adjustments to your coverage. If your insurance doesn't reflect these new assets, you could face unexpected costs or risks down the road.

4. Are You Protected Against Cyber Threats?

In today’s digital age, cybersecurity is critical for any organization, and nonprofits are not immune. With donor data, financial information, and confidential communications at risk, a data breach could be devastating. Many nonprofits assume they are too small to be targeted, but cybercriminals often view them as easy prey. Do you have the necessary coverage to protect your nonprofit from cyber threats?

5. Are You Ready for the Unexpected?

Natural disasters, lawsuits, or accidents—things we never expect—can quickly derail even the most stable organizations. Does your nonprofit have an emergency plan in place? And more importantly, is your insurance prepared to cover these unforeseen events? Whether it's property damage, liability claims, or unexpected legal battles, make sure your organization is equipped to weather the storm.

6. What Are the Legal and Regulatory Changes in Your Sector?

Nonprofits operate in a constantly evolving legal and regulatory landscape. Failing to keep up with changes in tax laws, employment regulations, or compliance requirements can expose your organization to fines or penalties. Have you recently reviewed your coverage to ensure you're in compliance with new rules that might affect your sector?

When it comes to coverage - think beyond the obvious - here are five coverages every nonprofit should consider.

Don’t Let Insurance Be an Afterthought

Too often, nonprofits overlook the importance of regularly reviewing their insurance coverage, assuming they are protected because they’ve always “had insurance.” But without taking the time to reassess, you might be leaving your organization vulnerable to unnecessary risks.

Taking the time to regularly review your insurance policies ensures that you stay covered—no matter how your nonprofit evolves or what new risks may arise. Protecting your passion means preparing for the obvious and the not-so-obvious.

Remember, it’s not just about protecting the organization; it’s about protecting the people who depend on your work. As a leader or board member, it's your responsibility to ensure that your nonprofit is fully equipped to face the future, no matter what challenges it may bring.

Take Action Today

Don’t wait for something to happen to ask, “Why didn’t we see this coming?” Take time now to review your insurance policies and consult with your advisors. Ensure that your organization, your staff, your volunteers, and your mission are protected from the unexpected.

By staying proactive, you can focus on what truly matters—serving your community and making the world a better place.

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