Who Needs Nonprofit Insurance?

Non-profit organizations and not-for-profit businesses span a very wide spectrum. They can be found across multiple sectors, each with its own risk exposure concerns. Entities that need non-profit insurance include:

  • ​Cultural organizations
  • Art organizations
  • Community health clinics
  • Non-profit educational organizations
  • Pet adoption services
  • Environmental conservation organizations
  • Fundraising organizations
  • ​Historical societies
  • Mental health facilities
  • Counseling centers
  • Homeless shelters & hostels
  • Shelters for Abused Women & Children
  • An organization that is categorized as a 501(c)(3)

Customized Solutions.

Nonprofit organizations are business entities that face risk in their day-to-day operations just like any for-profit business. At the same time, they are held to different operational rules and legal codes that require strict adherence to maintain their non-profit status. Adding to the equation is the fact that a lot of non-profits use volunteers, which further presents different risks that a lot of businesses don’t face.

Third-Party Bodily Injury Coverage

This is a general liability policy that covers your organization if someone is injured while at your nonprofit. It helps cover the cost of their medical expenses and you might have to pay a potential settlement if they sue for claims of negligence.

Third-Party Property Damage

This will cover your non-profit organization if a customer’s property is damaged, and you are held liable to repair or replace the damaged item.

Advertising Injury

This is a special clause in a general liability policy that covers claims of defamation such as libel and slander, or you are the victim of copyright infringement. In these instances, the insurance steps in to pay for a lawyer and potential settlement costs for nonprofit organizations.

Commercial Property Insurance

Most nonprofit organizations don’t have the liquidity to afford to replace property or products stored that are damaged or destroyed by fire or some type of natural disaster. Commercial property insurance covers these costs, as well as replacement costs for lost or stolen property.

Commercial Auto insurance

A nonprofit organization that employs a lot of volunteers often has a commercial van or other vehicles to shuttle people to events. Commercial auto insurance protects your vehicles, passengers, and other motorists.

Volunteer Accident Policy

This is an extension of the general liability insurance policy. Though it goes a step further to protect your non-profit from minor medical expenses should a volunteer be injured. This is often regardless of who is ultimately at fault for the injury.

Equipment Breakdown Coverage

This is essentially machinery insurance, which is very handy if your non-profit organization has a physical office location or building. If the building’s furnace, boiler, air conditioning system, or other equipment breaks down an equipment breakdown insurance policy will help to cover replacement and/or repair costs.

Cyber Liability Insurance

Also referred to as “Data Breach” coverage this policy helps to protect a non-profit organization that handles private consumer information or data. It provides coverage if your computer systems are hacked, infected with malware, or one of your employees makes a data entry an error.

Professional Liability Insurance

Also known as “Errors & Omissions” it protects you in case your professional advice leads to a lawsuit.

Workers' Compensation Insurance

If your non-profit hires employees, you will need a Workers’ Compensation policy insurance. It provides coverage in the case of employee injuries or illnesses. It also helps cover things like their medical expenses and lost wages.

Employment Practices Liability Insurance

This policy helps protect you in case an employee sues your non-profit organization due to claims of harassment, discrimination, or wrongful termination. It can also help protect you if there are ever any issues related to the Family and Medical Leave Act.

Directors and Officers Insurance

As the name implies this policy helps to protect directors, officers, and board members from liability if a lawsuit is brought against the nonprofit organization. This includes things like accusations of fraud, misconduct, malpractice, or financial mismanagement. It is especially important for non-profit organizations that typically make decisions via a board of directors.

The Dollars & Cents

How Much Does Non-Profit Insurance Cost?

The average non-profit insurance policy typically ranges between $400 to $700 annually. Though the cost can be affected by things like:

  • The number of employees
  • The size of the property
  • The age of the property
  • The type of the organization
  • How often do you employ volunteers
  • The services you offer

When you have Healy Brokerage on your side, you can rest easy knowing that we bring our decades of experience to bear when finding your non-profit organization the insurance you need. We can assess the type and level of coverage you need to help find a customized policy at a competitive price