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Management Liability for Nonprofit Organizations

Management Liability for Nonprofit Organizations
Nonprofit organizations contribute a lot to the communities around them. While their intention is not to make money, they are still just as vulnerable to lawsuits as any other company. People still make mistakes and people can still file claims against the organization.

Do Nonprofits Need Management Liability?

Often, in nonprofit organizations, the management team does not have the same level of experience as management teams in for-profit organizations. With less experience, there are more liabilities to take into consideration. Whenever there is an allegation against the director or office, it can financially devastate the organization. You need management liability so that you can pay the legal fees to fight an allegation and any damages you may have to pay.

What Are Common Claims Against Nonprofits?

In every organization, where there is a responsibility there is also a liability. This is one of the major similarities between for-profit organizations and non-profit organizations. Nonprofit organizations are not immune to claims or complaints. Some of the more common claims include:
  • Contract disputes
  • Harassment allegations
  • Wrongful termination
  • Wage disputes
Nonprofits can be the targets of lawsuits for numerous reasons. Nonprofit organizations are critical to a lot of charities. Nonprofits help build communities, provide assistance and support. No matter the kind of work that you’re doing, you need to keep your organization protected with nonprofit liability insurance.