How a nonprofit student orchestra almost ended on a sour note

By Higginbotham on July 09 , 2014

iStock_Businessman Holding Ears Closed
When a Texas nonprofit’s student orchestra was chosen to perform in a national competition out of state, it was a dream come true. To raise money to pay for the trip, the group planned a public performance at a local mansion owned by an avid supporter of the arts. The owner gladly donated the space for the good cause, but requested the group take special care of the valuable artwork around the home.

On the day of the performance, the students, staff and volunteers carefully carried in and set up the stage, chairs and instruments. When it came time for the downbeat, all was going well. More than 300 people attended the event, all willingly paying the $10 admission price to support the cause. The student orchestra performed magnificently and received a standing ovation. A local news station even covered the performance on its evening news.

At the conclusion of the event, everyone associated with the nonprofit was on cloud nine. The event had been a resounding success, bringing in more than $3,000 to help pay for the trip to the national competition. There was a good chance they’d receive even more donations when the public saw the coverage on the evening news. It seemed to be a win-win.

But that’s when things took a turn for the worse. As the students, staff and volunteers were tearing down and taking equipment out, one of the student performers accidentally knocked over a valuable ceramic vase, shattering it to pieces. Everything stopped in an instant, and there was a collective gasp of horror from other students and staff nearby. You could have heard a pin drop.

The nonprofit staff sought out the mansion owner and sadly relayed the news of the incident, promising to cover the damages. They knew it would be costly, and could even jeopardize their trip.

As expected, the nonprofit was contacted a few days later by the mansion owner, advising them the vase had been appraised at $5,000. The mood of everyone in the nonprofit quickly went from ecstatic to somber as their plans of attending the national competition were shattered along with the vase.

Then, they received some good news! It turned out that the nonprofit’s president had planned ahead and purchased an Event Insurance Policy with optional Third Party Damage Coverage prior to the event. Luckily for the nonprofit, the president was a former music teacher and longtime advocate for the arts in the community. She knew what could happen with a group of 50 kids and their musical instruments!

In the end, the nonprofit’s insurance carrier paid for the damages, the student group was able to go on their trip and they took second place in the national competition. A happy ending thanks to the foresight of a nonprofit president who understood the risks.

As a Texas nonprofit, you face a host of risks and liabilities every day. To make sure you’re covered at your next fundraising event, Higginbotham offers a wide range of insurance products to fit your specific needs and budget. With nonprofit insurance solutions designed to help you succeed in your cause, we’ll make sure your next performance ends on a high note.

Tags: Business Insurance