Managing a small foundation is rewarding, but it also has its risks. Whether you have few or no employees, all foundations face some basic insurance and financial risks. Foundations are essentially just like any corporate entity; they’re simply nonprofit businesses. So, you face the same risks as any leader of a corporation, such as errors in judgment with unintended consequences, fraud by employees or those with authority, claims by employees, unforeseen damage to property, etc.
Some states have immunity laws for volunteer leaders of nonprofit entities, but many are not comprehensive, provide limits lower than your ideal, and/or do not cover legal expenses. However, you can transfer many unacceptable risks to an insurance company. This primer will help you assess your foundation’s risks and learn about key insurance plans for nonprofit foundations.
Protecting Your Small Foundation With Insurance Table of Contents
II. KEY INSURANCE PLANS FOR NONPROFIT FOUNDATIONS
A. Directors and Officers Liability
B. Fiduciary Liability
C. Business Owner’s Policies/Business Office Package
D. Workers’ Compensation
E. Other Key Insurance
III. SHOPPING FOR INSURANCE
A. Comparison Shopping
IV. RISK MANAGEMENT