There are plenty of reasons to consider establishing a business that relies predominantly on volunteers. Nonprofits, for example, are great examples of organizations that do good work for the world without paying people to get the tasks done. Naturally, there are certain setbacks that can come from this type of arrangement. No matter how charitable the act, your business still faces the same risks as any other company in the modern age. To stay safe, however, you need to think beyond the traditional parameters. This is especially true of your insurance needs.
The Risks of the Volunteer Industry
Since volunteer-based groups allow people to volunteer instead of going through channels of onboarding for internal employment, this arrangement falls outside of the coverage typically granted by standard insurance plans. Instead, business owners in this sector will need to look to volunteer insurance providers in order to figure out exactly how to stay protected from the most common risks and exposures of the industry. Specific areas that can be important to address with your insurance provider in advance can include:
- Directors and officers coverage for board members
- Workers compensation coverage for employees and volunteers
- Cybercrime and extortion protections
How Nonprofits Can Mitigate Losses
There are several ways that operating a nonprofit can differ from running a traditional business. As long as you know where to turn for your insurance needs, these differences will not impact your ability to succeed.