Reviewing Your Nonprofit's Insurance Coverage: Ensuring Comprehensive Protection for 2025
December 17, 2024
As 2024 winds down, nonprofit leaders are busy planning for the year ahead—setting goals, reviewing budgets, and assessing their organization’s overall health. One essential task that can’t be overlooked is reviewing your insurance coverage. For nonprofits, insurance is more than just a checkbox—it’s your safety net, protecting your mission, people, and resources from unforeseen risks.
Just as your organization grows, changes, and evolves, so do your insurance needs. Whether you’ve expanded services, added employees, or hosted new events, your existing policies may no longer fully cover your risk. A thorough year-end review ensures that your nonprofit enters 2025 well-prepared and fully protected.
Here’s how to assess your nonprofit’s insurance coverage and why working with an independent brokerage like CalNonprofits Insurance Services makes all the difference.
Why an Annual Insurance Review Matters
For nonprofits, every dollar matters, and so does every risk. From property damage and employee injuries to cyberattacks and liability claims, a single incident can significantly disrupt your operations—and drain precious resources. The right insurance coverage gives you peace of mind, allowing your team to focus on what matters most: your mission.
An annual review allows you to:
• Identify gaps in coverage: Have you taken on new risks this year, like adding vehicles, expanding programs, or increasing your volunteer base?
• Evaluate coverage limits: As your organization grows, are your coverage limits still adequate to protect your assets and people?
• Ensure cost-efficiency: Are there opportunities to optimize your policies to better meet your nonprofit’s needs while remaining cost-effective?
Taking the time to review your policies is not just smart, it’s critical for ensuring that your nonprofit stays resilient and ready for the unexpected.
Key Areas to Review in Your Insurance Coverage
1. General Liability Insurance
This coverage is the backbone of nonprofit insurance. It protects your organization against claims of bodily injury, property damage, and personal injury. If you’re hosting events, providing community services, or engaging volunteers, general liability is essential.
o Questions to Ask: Are your limits adequate? Have you hosted new types of events or programs that may increase your liability exposure?
2. Directors and Officers (D&O) Insurance
Your board members and leadership team dedicate their time and energy to advancing your mission. D&O insurance protects them from personal financial risk if they’re sued for decisions made on behalf of the organization.
o Questions to Ask: Has your board grown or changed? Are decisions during turbulent times, such as staffing changes or program cuts, exposing your leadership to greater risk?
3. Workers’ Compensation
If you have employees, workers’ compensation is not optional, it’s required. It covers medical expenses and lost wages if an employee is injured while performing their job duties.
o Questions to Ask: Has your team expanded this year? Are volunteers or contractors adequately covered under your existing policies?
4. Cyber Liability Insurance
Nonprofits are increasingly targets of cyberattacks, especially those handling donor data or sensitive information. Cyber liability insurance protects against financial losses due to data breaches, hacking, and other cyber incidents.
o Questions to Ask: Are you accepting online donations? Do you store sensitive data about donors or clients? Do staff have sufficient training to avoid phishing or security breaches?
5. Property and Event Coverage
Whether you own office space, rent facilities, or host fundraising events, you need coverage to protect against property damage and event-related risks.
o Questions to Ask: Have you held any new events, rented new spaces, or added significant equipment or property?
How to Get Started with Your Insurance Review
Ready to take a closer look at your coverage? Here’s how to kick off your insurance review process:
1. Gather Your Policies: Start by collecting all current insurance policies—general liability, D&O, workers’ compensation, cyber liability, and more.
2. Review Changes: Reflect on changes that occurred in the past year. Did you add new programs, expand services, or hire new staff?
3. Evaluate Risks: Assess any new or evolving risks your organization may face in 2025, from event coverage needs to digital security risks.
4. Reach Out to CNIS: Connect with our team to schedule a full review of your coverage. We’ll help identify gaps, recommend tailored solutions, and ensure your organization is fully protected.
What Makes CalNonprofits Insurance Services Different?
At CalNonprofits Insurance Services (CNIS), we’re not your average insurance agency. As an independent brokerage, we work exclusively with nonprofits, which means we understand the unique challenges you face. Here’s what sets us apart:
• Nonprofit-Focused Solutions: Unlike standard agencies, we don’t sell one-size-fits-all plans. Every nonprofit is different, and we tailor policies to your specific needs, ensuring you’re fully protected while staying within your budget.
• Access to Multiple Carriers: As an independent brokerage, we work with a wide range of trusted insurance providers. This means we’re able to shop around for the best coverage and rates, saving you time, money, and hassle.
• Advocacy and Support: CNIS isn’t just about selling insurance; we’re about building relationships. From answering questions to assisting with claims, we’re here to help your nonprofit thrive year-round.
• Understanding the Nonprofit Landscape: Our team works exclusively with nonprofits, so we “get it”. From grant-funded budgets to volunteer needs. You’ll never have to explain why your organization operates differently from for-profit businesses.
Choosing CNIS means partnering with a team that cares about your mission as much as you do. Our job is to help protect your organization so you can keep serving your community.
Conclusion
Reviewing your nonprofit’s insurance coverage is one of the most important steps you can take to protect your organization’s mission, people, and resources in 2025. By ensuring you have comprehensive, up-to-date coverage, you can move into the new year with confidence, knowing you’re prepared for whatever comes your way.
CalNonprofits Insurance Services is here to help you navigate your insurance needs with personalized guidance and nonprofit-specific solutions. Don’t let risks slow you down—let’s make 2025 your most secure and successful year yet!