Your Nonprofit might have hidden gaps in protection

Use this checklist to uncover the hidden risks in your nonprofit operations.

Nonprofits often make small operational changes and don’t realize those changes can create insurance gaps. You might have made changes that inadvertently reduced or increased your risk.

Use this checklist to remind yourself of the past year’s changes.

Nonprofit operations

Did you change your entity structure (e.g., from a sole proprietor to a limited liability corporation)?
Did you expand your services, client base or distribution to multiple states?
Did you expand your supply, services or distribution to an international service area?
Do you accept online or electronic payments?
Do you accept cryptocurrency?
Do you host or maintain a payment or client self-service portal on your website or social media page?
Do you provide transportation for youth or host groups or activities involving minors?
Do you have a board of directors?
Do you have volunteers or unpaid helpers you rely on for your operations?
Do you advertise digitally or in print?
Do you give advice or provide professional services?

Nonprofit property (leased or owned)

Is your property within the range of a fire station, or have you installed a private firefighting system (if you’re in a rural area)?
Did you install a rooftop solar panel system or solar roof tiles?
Did you renovate, upgrade or add space to your property?
Did you upgrade your HVAC, plumbing, electrical system, siding, roof or windows?
Did you add a security system to your property or parking lot?
Do you rent out a portion of your property or share your space?
Do you have any detached structures (garages, sheds or other outbuildings not connected to your nonprofit)?
Do you rent out a portion of your garage or other outbuildings for parking or storage?
Do you have collectibles or high-value artwork on display?
Do you store inventory on-site or at a warehouse?
Did you install signs or awnings?
Do you allow pets on the premises?
Do you rent out a portion of your garage or another outbuilding?
Is your building an older or vintage property?
Do you have a pool or hot tub on your premises?
Do you have a sidewalk or another public walkway you’re responsible for clearing?
Have you made substantial permanent improvements to the building you rent?

Data collection, computers and networks

Did you change your computers or data network?
Do your staff members work from home all or part of the time?
Do you store client, donor or volunteer personal information on a networked server or website?
Do you accept credit cards or other types of monetary transactions?
Do you use biometrics (fingerprint scanners or facial recognition) for your operations?

Autos or vehicles your nonprofit owns

Do you own vehicles?
Do you use electric scooters, mopeds, motorcycles, ATVs or golf carts to get around at your nonprofit?
Do your employees or volunteers drive their personal vehicles for donation pickups, client visits, errands, client services or outings?
Do you have custom wraps, logos or paint designs on your nonprofit vehicles?

Employee and volunteer liability

Did you increase or decrease your number of employees or volunteers?
Do you use contractors, or temporary or gig workers?
Do you use volunteer staff for any part of your operations?
Do you offer a pension or retirement plan?
Do you use artificial intelligence (chatbots, recruit bots, scanners, etc.) for hiring or career advancement?
Do your employees access petty cash, client records or other sensitive information in the course of their duties or on behalf of clients?

Liability that you might have answered “yes” to

You might have a risk liability that creates a significant coverage gap for your nonprofit.

Nonprofit liability:	Insurance solution:
Your property is in an area that has flash rains, snowmelts, thunderstorms, floods or mudslides, or relies on a sewer system.	Property and business owners policies do not cover flooding. A flash rain or snowmelt can cause a flood in a nonflood plain. An inch of water can cause over $25,000 in damage. (Think of the equipment and storage in your basement or first floor.)
Your property has plumbing or relies on a sewer system.	Sewage backup could force you to close for a while. Sewer backup insurance differs from flood insurance. We can explain the details.
Your property is near a fault line or could experience an earthquake or earth movement.	Earthquakes are not covered under commercial property insurance. If your nonprofit gets damaged, it may need substantial repairs, especially if it’s not an earthquake-resistant design. You can buy a separate earthquake policy or add it to your property coverage.
You don’t know if your property is insured for market or replacement value.	The market value of a building is not the same as its replacement value. Market value is what someone will pay for your property. Replacement value is what it will cost to rebuild your property. Replacement value can exceed market value by tens of thousands of dollars. Reevaluate your property limits every few years to stay current with market costs (inflation, weather, supply chain shortages and labor costs).
You’re interested in rebuilding your property with energy-efficient materials after a property loss.	A green materials and equipment upgrade endorsement reimburses a portion of the cost of rebuilding using energy-efficient materials.
You lease your space, but you have made substantial improvements to the property.	If you rent your space and you’ve installed permanent improvements (like high-end flooring or built-ins), improvements and betterments insurance will reimburse you for the cost.
Your operations involve clients, vendors or a brick-and-mortar location.	Commercial liability insurance covers your damages if you are sued for defamation, a dog bite, bodily injury or property damage you’ve caused to others.
You own an older property.	Ordinance or law coverage helps when local or other laws require you to rebuild your entire property to code, even the undamaged parts.
You display art or a valuable collection on site.	Collectors and their collections require distinct insurance. An agreed value is an agreed-upon price for replacement. The appraised value depends on an appraiser’s valuation of the collection item.
You host programs or services for youth, people with disabilities or the elderly.	You could be at risk for harassment and molestation allegations as a service provider. Many liability policies specifically exclude abuse and molestation. You’ll need additional coverage for these risks.
You hire or work with employees, volunteers or contractors.	Your employees, contractors, volunteers and potential employees can sue you for unfair work or hiring practices. Workers’ compensation covers you for injuries on the job, but it doesn’t cover you for allegations of discrimination, wrongful termination, harassment, wrongful failure to employ, failure to promote or other human rights complaints. Employment practices liability insurance helps with legal defense costs and settlements.
You have a board of directors.	Your board members might be held personally liable for harassment, abuse, discrimination or financial misappropriation. Directors and officers insurance can help with this risk.
You have an indispensable or irreplaceable person.	A key person can be an owner or even a namesake synonymous with your nonprofit. Key person insurance is a type of life insurance that provides a temporary revenue stream after a critical staff member dies. This can give you time to hire a replacement.
Your property is accessible or visible to the public or employees.	Workplace violence insurance helps with victim coverages, liability, income and extra expenses due to acts of violence and attacks with deadly weapons (guns, knives and others) at your organization.
You are active on social media.	Check your general liability limits if you’re active on social media or other media platforms. You might need to increase your limits or get a commercial umbrella or media liability policy. The lawsuit and defamation risks are much higher if you interact with a global audience.
Your staff members travel domestically.	If your staff members travel for nonprofit business, add travel insurance to your coverage. It comes in handy for travel cancellation and medical payments if an illness or accident occurs.
Your staff members travel internationally.	If your staff members travel internationally, especially for high-profile events, consider kidnapping and ransom insurance. It can help with negotiations, payments, media management and other sensitive issues.
You have employees or volunteers who can access cash, data or other resources.	Employee theft or crime insurance helps you recoup costs associated with theft and loss due to an employee’s actions. If your employees or volunteers are part of a theft ring, your general liability policy won’t help.
You store client and donor data or use the internet to process payments.	You could be liable for a breach of personal information on your servers or in the cloud. Fines and required mitigation efforts like providing credit monitoring services can cost thousands. Cyber liability can be as costly as a property loss, so cyber insurance is essential.

Let’s talk soon

Even if it doesn’t appear on this list, please ask our team about any coverage that interests you. We’ll be in touch to discuss protection for your nonprofit.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

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