Non-profit agencies suffer more than for-profit organizations during a financial crisis. It is important that Community Action Agencies (CAAs) get insured for liabilities so potential lawsuits facing individual volunteers do not take the entire organization down as a whole. In case of professional negligence or allegations of abuse, agencies need to have insurance to keep them afloat during periods of time when legal complications occur. Without such coverage, CAAs can end up dishing out a lot of money, even in circumstances of false accusations. The limited resources of non-profits can dry up fast and leave the people dependent on the funds for food, shelter, education, and counseling with nowhere to turn.
To keep centers up and running during lawsuits, each one should have coverage that includes professional liability as well as abuse and molestation liability. Although most volunteers have good intentions and care deeply for the people they serve, sometimes accidents happen, innocent behavior is perceived as suspicious, or workers take advantage of the vulnerability of the center attendees. For every finger legally pointed at volunteers or employees, an insurance company should provide coverage so the community program does not take a hard financial hit.
Having insurance can make all the difference for Community Action Agencies facing the consequences of the actions of a single worker. Coverage can help sustain centers when legal allegations arise.