Umbrella Liability / Excess Liability Insurance
for Nonprofit Organizations

Your nonprofit organization or social service strives to make a difference in your community. Unlike other types of businesses, there is far more at stake than your business assets if and when your organization finds itself in legal trouble — your mission and your community also stand to suffer.

That’s a lot of responsibility. And fortunately, there’s a small business insurance policy that can help you to “pull out all the stops” when it comes to protecting your business from liability claims: Umbrella Liability Insurance.

This type of coverage (sometimes referred to as Excess Liability Insurance) acts as a “boost” to existing liability policies by offering additional protection (in increments of $1 million) that can be accessed when a claim exceeds those policies’ limits. As you know, your insurance policies cannot offer unlimited protection. If your nonprofit or social services organization encounters a claim that costs more than your policy’s limit, you are responsible for paying the difference.

Here’s an example: You own and operate a nonprofit botanical garden that includes a one-of-a-kind water fountain, on loan from a local artist. One day, while a family is checking out exotic plant specimens in the greenhouse, the mother slips on the wet floor and breaks her arm. Her fall also tips the fountain, which shatters.

You carry General Liability Insurance, which helps cover the mother’s medical expenses. But when the artist finds out you weren’t maintaining the floors to the standards you agreed to, she sues for property damage – after all, her one-of-a-kind piece is now in ruins. Together, the two suits cost more than the limit of your General Liability policy. Luckily, you have an Umbrella policy in place, and you’re able to finance the second lawsuit through that coverage.

As you can see, it’s only rare incidents that exceed your General Liability policy’s limit — but that doesn’t mean that it can never happen to you. Umbrella Insurance is extra protection for those “what if” situations. Read on to learn more about how Umbrella Insurance can protect your nonprofit or social services organization.

Umbrella Insurance Protects

Umbrella Insurance: Protecting Nonprofits and Social Services Organizations from High-Dollar Claims

It’s true that Umbrella Insurance might not be right for every nonprofit or social service organization. In order to decide whether additional liability coverage can benefit your organization, you must consider the kinds of risks this policy can cover, which include those protected by your…

  • General Liability Insurance. This includes exposures such as third-party bodily injury, property damage, medical expenses, personal / advertising injuries, and liquor liability. And remember: the more people who visit your place of business, the higher the potential for accidents and the greater your General Liability exposure.
  • Hired and Non-Owned Auto Insurance. If your organization rents vehicles or lets employees drive their own cars for company tasks, Umbrella Insurance can boost the policies that cover the associated liabilities. Since auto accident claims get expensive quickly, it’s often beneficial to have extra liability protection on your side.
  • Employer’s Liability Insurance. If you have employees, this coverage is the part of your Workers’ Compensation Insurance that protects you in the event that an employee sues you in relation to a workplace injury or illness.

For nonprofits that have protection through a Business Owner’s Policy (BOP), there’s no need to worry. Umbrella Insurance can be applied to the General Liability portion of a BOP.

So in the event that your nonprofit or social service organization should ever face a claim that exceeds the limits of one of the aforementioned policies, your Umbrella Insurance can cover the excess expenses. Without this protection, your organization would be responsible for making up the difference out of its coffers.

Umbrella Liability Essential Facts

Essential Facts: Umbrella Insurance for Nonprofits and Social Service Organizations

At this point, you may be thinking that Umbrella Insurance could benefit your nonprofit or social service organization, but that it sounds a bit too expensive for your budget. But before you make your final decision, keep these key facts in mind:

  • Umbrella Insurance is affordable. Yes, $1 million in extra liability protection sounds expensive. But in reality, most Umbrella Insurance plans only cost business owners a few hundred dollars each year.
  • Umbrella Insurance should be bought through your existing agent. All your business insurance policies should be bought through a single agent — and Umbrella Insurance is no exception. That way, your agent can more easily make sure that there aren’t any gaps in your coverage and that you aren’t paying for more coverage than you need. Should a claim arise, your benefits will be easier to coordinate and you lessen the chances of miscommunication.
  • Umbrella Insurance can’t cover everything. This coverage can boost several policies, but it cannot boost all liability policies. For example, your Professional Liability Insurance and your Directors and Officers Insurance cannot be altered with an Umbrella policy.
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Umbrella Liability Insurance Quotes for Nonprofit and Social Services Organizations

If you’d like to receive Umbrella Liability Insurance quotes for your nonprofit or social services organization, call an insureon agent. Our agents specialize in securing coverage for organizations like yours and can answer any questions you may have. If you’d rather fill out our no-hassle online application, you can receive Umbrella quotes directly to your email inbox.

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