Why Nonprofit Management Liability Is Important

Nonprofit organizations are critical to the communities in which they operate. They provide support, assistance and more to those who need it the most. Even if your company has the best intentions in mind, it is not immune to lawsuits. Nonprofit management liability insurance is a must-have for all organizations. Here is why it is so important to have the protection of liability insurance.

Lawsuits Against Nonprofits

In recent years, lawsuits against nonprofits have been on the rise. Your organization may face litigation because an individual believes that you have connections to unsavory organizations or because someone in management is guilty of sexual harassment. Board members and other officers are often the subjects of lawsuits.

Lawsuit Costs Against Nonprofits

Generally, non-profits do not have enough money to cover the costs of legal action taken against them. When an individual or entity files a lawsuit, you still have to pay to fight it even if it is unfounded. You could suffer a devastating loss if the judge rules against you or you have to pay a settlement. Insurance helps cover those costs so that you can fight a lawsuit without your organization losing money.

Non-profit organizations are prone to lawsuits. Without management liability, your organization could suffer devastating consequences because of legal action.