Nonprofit Organizations

Many Nonprofit organizations inherently have a different risk composition from their For-Profit counterparts.  For Nonprofits to maintain their ability to compete and remain immune to many of the additional risks, it is CRITICAL to adhere to Risk Management Program that Actively manages, monitors and adjusts to the various Exposures present.

Active Exposure Management

Nonprofits operate different from a lot of other businesses and accordingly their needs from a Risk Management program differ significantly as well.  First, they typically possess expertise focused on their core competency so it is imperative that the professionals hired to aid the Nonprofit do so actively and in a proactive fashion.  As insurance professionals go, many expect their clients to file and manage claims.  Whereas this may be OK for some insurance costumers in specific circumstances, it is rarely appropriate in the Nonprofit realm and can be detrimental to both the Nonprofits ability to perform its stated goals and to maintain financial viability.  

An Active Exposure Management program entails a close and collaborative relationship between the Nonprofit, Safety Programming, the Insurance Company(ies), and the Insurance Agent/Broker.  When an Active Exposure Management program is setup and operating properly, clients remain compliant in the various aspects of their operation while Premium Costs are controlled.  Over the long-run a Nonprofit may eventually take more and more control of their Insurance Premium Costs.

Sample Additional Hazard:  Injuries Sustained by Workers/Employees (and Volunteers)

One inherent risk that faces Nonprofit Organizations at a higher rate than their For-Profit counterparts are Employees from operating outside/beyond the scope of their position.  The utilization of volunteer, non-monetarily motivated (cause focused), and even faith based staff.  Many persons that seek employment (or to contribute to mission based organizations) will do what they feel they can to go above, and many times beyond, the scope of their role in order to provide service.  Many times the act of going above and beyond can expose the employee/volunteer to a situation where they are untrained and/or unaware of that can increase the probability of an injury.  Although the motives are altruistic, the outcome can be detrimental to the organization and its mission.  

Example:

A Nonprofit Performing Arts Center utilizes volunteers are ushers to assist patrons to/from their seats during live performances.  The theater lights are commonly very low if not completely off during performances; however this is when the usher's job is busiest which causes a trip and fall hazard in the dark (a fairly common hazard for performing arts venues).  Then comes the unique addition to the hazard for the Nonprofit in that it primarily utilizes Volunteers as ushers, and those ushers only work a maximum of 2-3 part-time shifts per month - meaning they are less aware of their surroundings and have less experience navigating the facility as compared to full-time paid employees..  

To minimize much of the risk the Nonprofit in this example outfitted each Volunteer usher with a flashlight and clear instructions to stick with specific routes to eliminate as much of the exposure to the hazards outlined as possible.  

(They are still exposed to since the ushers have less experience in the venue as compared to fully paid staff)