Robust Non-Profit Insurance Coverage to Empower Your Organization’s Mission

Help secure the future of your organization with non-profit insurance

The nonprofit sector needs just as much financial protection as your typical business operations. Non-profit insurance is a type of insurance specifically designed to meet the unique needs and risks faced by nonprofit organizations. Nonprofits operate for charitable, educational, religious, or social purposes, requiring insurance coverage tailored to their activities and exposures.

Non-profit insurance policies can be customized to fit the specific needs and activities of each organization. Working with an insurance broker or agent experienced in serving non-profit organizations can help ensure that the organization obtains appropriate coverage to protect its mission and assets.

Insurance that’s unique to your non-profit

No two non-profits are the same, and that’s why you need an insurance policy unique to your organization. Because even though your organization’s goal is to help people, you are still running a business. That means your non-profit needs to protect itself against the risks that small business owners face. However, you’ll often find that premium prices for non-profits may be lower than traditional businesses. We’ll help you find a non-profit insurance policy that offers coverage for your organization’s unique needs.

Directors and Officers Insurance

Risk Factor

What happens if board members invest the non-profit’s assets unwisely and lose everything? A creditor might sue the non-profit as well as its directors and officers. Non-profit organizations are not immune to lawsuits. It’s possible someone may disagree with the way you run the organization and file suit. Oftentimes, non-profits don’t have deep pockets to fight these types of lawsuits, therefore putting the organization at risk.

Solution

Directors and officers liability insurance protects your directors, officers, trustees, employees, volunteers, and the entity from any act or alleged act, error, omission, misstatement, misleading statement, or breach of duty.

Management Liability Insurance

Risk Factor

If the nonprofit’s directors and officers are sued for alleged wrongful acts, errors, or omissions in the performance of their duties, the organization will need to cover legal costs. Claims can arise from a variety of sources, including employees, donors, volunteers, clients, or regulatory agencies.

Solution

Management liability insurance is essential for non-profit organizations to attract and retain qualified directors and officers, as it provides them with protection against personal financial loss in the event of lawsuits related to their roles within the organization.

General Liability Insurance

Risk Factor

Water on the floor, slippery entry in the winter, broken glass/hazardous debris, etc. These can all be accidents waiting to happen that make your non-profit susceptible. Claims may arise due to bodily injury, property damage, personal injury, and more.

Solution

Any business or organization must purchase general liability insurance out of necessity. Commercial general liability coverage will be necessary when you are deemed responsible and liable, and will also pay to defend any covered lawsuit or action regardless of its merit.

Business Owner’s Policy (BOP)

Risk Factor

Many nonprofits have assets like property and equipment that require protection, making property insurance valuable. However, the specific needs of each nonprofit vary.

Solution

A business owners’ policy typically bundles essential coverages like property insurance, liability insurance, and business interruption insurance into one policy, offering cost savings compared to purchasing each coverage separately.

Workers’ Compensation (Errors and Omissions) Insurance

Risk Factor

Workers’ compensation insurance for non-profit organizations covers a range of risks and scenarios where employees may be injured or become ill while performing their job duties.

Solution

Workers’ compensation protects your employees should a job-related injury or sickness occur during the course of employment. This coverage is required by law and may vary by area, so be sure that you understand your obligations for all physical locations where your business operates and all physical locations where you hire your employees.

Commercial Property Insurance

Risk Factor

When a fire, theft, or another type of disaster strikes, your commercial property and everything within it can suffer a significant loss. This can have a detrimental effect on your organization.

Solution

Commercial property insurance can help protect the property your business owns and leases, including things like equipment, inventory, furniture, and fixtures. Whether you own your building or lease your workspace, commercial property insurance can be purchased separately or combined with other necessary coverage to protect your business’s physical assets.

Employment Practices Liability Insurance (EPLI)

Risk Factor

On average, it’s estimated that three out of five businesses will be sued by their employees. Claims can stem from just about anything, such as someone taking a joke the wrong way and being offended. While there is nothing you can do to prevent someone from filing a lawsuit, there is something you can do to limit the costs of defending against employment-related claims.

Solution

The right coverage is critical to your risk management process as it protects against discrimination, wrongful termination, sexual harassment, and other employment-related allegations.

Business Income Insurance

Risk Factor

What would you do if an email virus impacted the operation of your database and prevented you from serving clients for a day or more? Or what if a hacker or cyber-criminal caused a system outage or extended downtime, leaving your business inoperable? These and other events can destroy your ability to serve clients and bring in revenue, which can have a major long-term impact on the viability of your business.

Solution

Business income insurance compensates you for lost income if your company cannot operate as normal due to disaster-related damage that is covered under your commercial property insurance policy, such as a data breach or cyber attack. Business income insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.

Professional Liability Insurance

Risk Factor

Lawsuits can happen to anyone, and the damages can be hefty whether you win or lose. Even if you’ve done nothing wrong, you’ll need to defend yourself. So regardless of whether a contract requires it, without professional liability coverage, you could be putting your business’s future at risk.

Solution

Similar to directors’ and officers liability insurance, professional liability coverage protects against liabilities resulting from mismanagement of the organization, as well as workplace-related claims such as discrimination or sexual harassment. It covers not only directors and officers, but also staff, volunteers, and the non-profit organization itself when providing services.

Commercial Auto Insurance

Risk Factor

If the nonprofit owns vehicles that are used for its operations, such as delivery vans, buses for transporting clients, or vehicles for staff members to travel to meetings or events, the non-profit could be held financially responsible for resulting accidents, which could potentially put the organization’s assets at risk.

Solution

Auto insurance provides liability coverage in case a nonprofit-owned vehicle is involved in accidents that cause bodily injury, medical expenses, or property damage to others.

Cyber Liability Insurance

Risks

Nonprofits often collect and store sensitive information about donors, clients, employees, and volunteers. But like any organization, most nonprofits can face cyber threats such as data breaches, hacking, phishing attacks, and other cyber incidents.

Solutions

Cyber liability insurance is an important component of risk management for nonprofits, helping to mitigate the financial and reputational risks associated with cyber threats.

What coverage does your non-profit need?

Because non-profits vary in size and type, there are many coverage options available that may fit the needs of your organization. Some factors to consider in building a policy are whether or not you deal with members of the public at risk of injury, such as elderly or disabled people. You’ll also need to think about any type of transportation you use, particularly if it’s to carry people who aren’t staff. You might even face claims if people are hurt or face costs because of shortcomings in the help or advice you provide.

What organizations need non-profit insurance?

Tax-exempt organizations such as volunteer fire departments, unions, religious groups, recreational clubs, charities, and more may require non-profit insurance.

Why do you need non-profit insurance?

Having non-profit insurance for your organization may help protect you from professional mistakes, lawsuits, bankruptcy, defense costs, medical bills, employee claims, and damage to your reputation.

How much does non-profit insurance cost?

Nonprofit organization insurance costs may depend on a variety of factors, including your location, the size of your non-profit, how many employees and workers you have, what type of organization you run, and coverage limits. Consult with an insurance agent for more information on premium costs.

Policies for your staff and directors

It’s also particularly important to check how an insurance policy distinguishes between the organization itself and the personal liabilities of any of the directors. Meanwhile, if you employ staff, you’ll also need to look at potential risks such as claims of harassment or discrimination. Coverages such as directors’ insurance, officers’ liability policy, workers’ compensation, and employment practice liability insurance may help your organization in these situations.

Looking for non-profit insurance so your organization can carry on giving back to others? Contact us to go over the specifics of your non-profit and the coverage options available to you.