What simple steps can the board take on risk management and insurance oversight?
Pamela: Every member of a board of directors needs to realize that there are risks to operating any nonprofit, and that through appropriate policies and procedures and staff training, these risks can be reduced. Insurance is there to cover those things that happen when the risk mitigation strategies are not completely successful. I suggest some board steps for insurance oversight. These steps include close monitoring of any accidents and suits; keeping up with organizational risks and regular review of your group’s relationship with its insurance broker. Q: Just one more question: What’s different, if anything, about insurance for nonprofits compared to for-profits? Pamela: It pays to work with insurance brokers and insurance carriers who understand how to make sure that the insurance policies purchased are sufficient to cover a nonprofit’s risk exposure, which can be more complex than a f0r-profit’s risks. It is not necessarily being nonprofit that makes our sector’s insurance needs s
