Unfortunately, far too many nonprofit organizations go without the necessary insurance protection. While you may think that because you do not make profits that you are less susceptible to the common threats most businesses are faced with, nonprofits are actually more vulnerable to damaging claims. As a nonprofit, you need D&O liability insurance in order to carry on with business without worries. We want to emphasize the importance of this vital insurance policy, which is why we have gathered a few common claims nonprofits are faced with:
- Far too often, individuals who make donations to nonprofits will end up suing the organization if they believe that the financial status of the nonprofit was misrepresented.
- Although your employees and volunteers are there to promote the well-being of your nonprofit organization, there are an overwhelming number of cases where both employees and volunteers filed claims of discrimination, retaliation, wrongful termination, and sexual harassment.
- There are a variety of claims filed by governmental agencies claiming misuse of funds or failure to utilize unused funds.
- Some beneficiaries and clients have actually sued nonprofit organizations in obtaining the services offered. For example, one claimant receiving services from a drug and alcohol rehabilitation center actually filed a discrimination lawsuit when their claim to request a transfer in the same housing complex was rejected.
- Turmoil amongst members of an organization is often unavoidable. Therefore, it often results in a costly battle trying to remove a member from the nonprofit organization.
Contact Purves & Associates Insurance Services for all of your California D&O liability insurance needs. Your nonprofit organization deserves just as much, if not more, protection than any other business. Allow us to provide you with the security you deserve so you can continue providing individuals with inspiring services.