Everyday we take risks! There is no need to run around scared all our lives but there is a need for being and acting smart to try to reduce your chances of being caught in an unpleasant situation. We all need to understand that in running any business, regardless if it is a for profit or not for profit, we have risk involved. When you think of security, you might first think of theft, bodily injury, or other violent crimes. However, you also need to be objective and view risks to both you and your organization.
Do you have a plan or is your organization covered in case of fire, storm damage etc.?
Below are a few questions you might want to answer when thinking about your organization’s security needs and risks:
Does your organization need a security alarm?
Is your building location and parking lot well lit?
What type of insurance coverage do you have and is it enough?
What does insurance not cover?
How are monies handled in your organization?
What are your computer related risks?
As a general rule nonprofit boards of directors should seriously consider purchasing “Director and Officers Insurance” to protect the board of directors from liability in case the nonprofit is sued. See: Nonprofit Insurance
You may also want to look into bonding the executive director or the persons handling any money, i.e., purchase a “Dishonesty Bond”.
Further, it is important to have additional “Event Insurance” to cover your fundraising events in case someone slips and falls and permanently injures themselves. Contact
your local insurance agent for their expert advice on the coverage you might want to check out the Nonprofits’ Insurance Alliance of California (NIAC).
ANI is the affiliated company of NIAC that provides insurance for nonprofits outside of California. ANI is also a tax exempt 501(c)(3) nonprofit, and is capitalized by grants provided by the Bill & Melinda Gates and David and Lucile Packard Foundations. ANI
was licensed by the Vermont Insurance Department in December 2000. ANI is currently writing coverage for 501(c)(3) nonprofits in Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, North Carolina, Ohio, Oregon, Pennsylvania, Utah, Vermont, Virginia and Washington. ANI and NIAC are part of the Nonprofits Insurance Alliance Group, which is rated A VIII (Excellent) by A.M. Best Company.
To find out more go to: www.insurancefornonprofits.org
Understanding Business Insurance http://managementhelp.org/businessinsurance/index.htm
Insurance Information Institute is a non-profit, educational and communications organization sponsored by the auto, home and business insurance industry. http://www.iii.org/
Consumer World has gathered over 1,500 of the most useful consumer resources on the Internet, and categorized them here for easy access. Loads of useful consumer information. http://www.consumerworld.org/
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.