Regulatory Enforcement Nonprofit organizations are particularly vulnerable to regulatory exposures.


“To a certain extent we know the challenges of not for profit companies are that they normally do not have large staff.”


Janet Dreifuss, Alliant


Nonprofits face increasing claims for failing to comply with Sarbanes-Oxley with regard to document retention and auditing practices. Because they are so reliant on government and private grants, they face tremendous scrutiny in how they use and account for those funds. These challenges are exacerbated by the nature of nonprofits. Striving to use their resources to fulfill the organization’s mission, nonprofits often have too small a staff to provide adequate administrative oversight. Brokers, therefore, must ensure that their nonprofit clients are careful in how they conduct their business. For the day when claims inevitably come, they must understand how their policies work: what coverage is available and what the triggers are for accessing that coverage.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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