Business Insurance for Nonprofits
Running a nonprofit can be a tremendous responsibility. You face plenty of challenges that a regular business might not have to deal with, but some risks are universal, such as…
- Property loss and damage.
- Employee work injuries.
Having appropriate insurance in place to address these liabilities is essential for keeping your nonprofit operating as efficiently as it can.
Coverage Types for Nonprofits
Different insurance policies cover different kinds of risks. Knowing which policy offers which protection can be confusing, which is why working with an agent who knows your line of work is the best way to find the insurance plan that suits your needs. You can also learn about the different types of coverage below.
Most nonprofits may benefit from the following insurance policies:
General Liability Insurance
This is a foundational policy that protects your nonprofit when a third party sues over bodily injuries or property damage. Sometimes called “slip-and-fall” insurance, General Liability is essential if your office or store is open to the public. If someone is hurt on your property, you could be liable for the medical expenses. Some landlords may require you to carry this policy before letting you lease a space.
Professional Liability Insurance
Over the course of your nonprofit’s work, you may offer counsel or guidance to clients. Those clients could allege that you made a mistake or gave them bad advice. If a client sues over these oversights and alleges that your nonprofit acted negligently, your Errors and Omissions Insurance can help pay for legal defense fees and judgments or settlements, saving your nonprofit from dipping into its own limited budget.
Directors and Officers Insurance
Directors and Officers Insurance can protect your nonprofit’s directors, officers, and board members in case they’re personally sued for misusing company funds or failing to perform their duties. Unlike a corporation, a nonprofit’s executives can be held personally liable when something goes wrong. Having this insurance offers incentive for talented officers to help your nonprofit’s mission by not requiring them to put their own livelihoods on the line.
Special Event Insurance
If your nonprofit throws a fundraiser, awareness walk, or celebratory concert, Special Event Insurance can protect against personal injury and property damage that happen at the event. It can also include Liquor Liability coverage. Special Event Insurance is a short-term policy that can cover a single event, and the cost and coverage depend on the event specifics.
Liquor Liability Insurance
If your nonprofit ever organizes or hosts a special event where alcohol is served, you may need Liquor Liability Insurance. This policy can protect your organization when someone alleges that an intoxicated guest harmed someone and attempts to hold your nonprofit accountable for the damage.
Property Insurance can protect the physical assets your nonprofit owns or rents: computers, furniture, medical equipment, office space, and more. It can help replace or repair property that’s been stolen or damaged by certain events, such as vandalism, fire, and windstorms.
Business Owner’s Policy
Designed for small, low-risk businesses and organizations, a Business Owner’s Policy (BOP) combines General Liability Insurance and Property Insurance into one convenient package, often at a discount. Ask your agent if your nonprofit qualifies.
Cyber Liability Insurance
Cyber Liability Insurance can cover expenses when your organization is hacked or experiences a data breach. It can help pay for notifying affected donors, repairing your security, offering credit-monitoring services, and rebuilding your organization’s reputation after the breach.
Commercial Auto / HNOA
Commercial Auto Insurance insures your company vehicles against loss or damage. It can also address your organization’s liability for auto collisions.
Workers’ Compensation Insurance
Nonprofits that have employees are almost always required to carry Workers’ Compensation Insurance. This is regulated at the state level, so know your state’s laws. In some cases, this policy may cover volunteers as well, but ask your agent for details.
Umbrella Insurance can supplement coverage for certain underlying policies when their limits have been reached. For example, you can draw on your Umbrella coverage if your General Liability policy has been maxed out. It’s often an affordable alternative to increasing your underlying policy limits.
Find Insurance for Your Nonprofit
Every nonprofit is different, and there’s no one-size-fits-all protection plan. To get an idea of what insurance you may need, browse the information on this website or call an insureon agent at 800-688-1984. You can also fill out an online application for quotes on insurance policies tailored for your nonprofit.