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Non-Profit Insurance

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First State Agency/ non profit insurance

Non-Profit Insurance Provided By Our Agency

Given many nonprofits' shoestring budgets, a single significant and unexpected expense could lead to financial ruin. So, getting the proper insurance to guard against the biggest (or the baddest) risks is a wise move for nonprofits (and other businesses).

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General liability
Product Coverage
Directors & Officers liability
Professional liability
Workers’ Compensation Insurance

General liability coverage

Risk Factors

A general liability policy insures your nonprofit organization against classic slip-and-fall scenarios. (It’s sometimes also called a “commercial general liability” or “CGL” policy.)

Solution

Your nonprofit will be covered for damages that it’s ordered to pay to someone (such as a visitor, customer, supplier, or associate) who is injured on the organization’s property.

Product liability coverage

Risk Factors

Suppose your non-profit sells products to the public — for example. In that case, you raise funds by selling baked goods, or your artist-clients create and sell sculptures out of recycled products, consider buying product liability insurance.

Solution

It will protect your organization from lawsuits by customers claiming they were hurt by an unsafe or defective product you provided. For example, if a customer breaks a tooth on a walnut shell baked into your cookie or slices a hand on a sharp-edged sculpture, this insurance will cover the legal defense and a sizable portion of the damages.

Directors & Officers liability coverage

Risk Factors

Your non-profit’s board of directors and officers (many of whom are volunteers) could be personally named in a lawsuit against your nonprofit alleging fraud or financial mismanagement.

Solution

You’d want directors and officers (D&O) insurance to cover the cost of defending the directors and officers and pay any resulting money damages.

Professional liability coverage

Risk Factors

Similar to D&O coverage, professional liability coverage (also sometimes called “errors and omissions” or “malpractice” insurance) protect against liabilities resulting from mismanagement of the organization, as well as workplace-related claims such as discrimination or sexual harassment.

Solution

It can help cover not only directors and officers but also staff, volunteers, and the non-profit organization itself.

Workers’ Compensation insurance coverage

Risk Factors

General liability will not provide coverage for injuries to employees. These coverages are important because they address injuries to your human assets – your employees and your volunteer workforce.

Solution

Workers’ compensation pays medical expenses, disability, and death benefits for injured workers. Volunteer accident insurance pays for minor injuries to volunteers who are donating their time and expertise to your cause.

Insurance for Non-profit Organizations

Non-profit organizations and their leaders juggle enormous and varied responsibilities daily – from managing tight budgets to engaging volunteers and donors to fulfilling the organization’s mission. Yet, since so many non-profits are singularly focused on a particular cause, organizations often neglect to identify and protect against risks that could expose the organization and its board members and officers.

Just as any business or organization has risks associated with employees, board members, data, or fraud, non-profit organizations of all sizes are not immune. Claims and threats of litigation can be from vendors, donors, competitors, employees, and even government regulators. Non-profit organizations file twice as many D&O claims as public and private companies. In addition, 85% of lawsuits filed are employment-related, and every non-profit organization is at risk of a data breach as they keep and maintain donor financial files, employee records, client data, and even volunteer data.

Who needs Non-Profit Insurance?

Non-profit organizations are mostly like any other organizations, with one significant difference: They don’t turn a profit. This type of organization has been granted tax-exempt status by the IRS, which requires them to have a unique form of coverage. The following are typical examples of non-profit organizations that require special coverage:
  • Federal credit unions
  • Charitable organizations
  • Scientific organizations
  • Amateur sports associations
  • Public safety testing organizations
  • Religious organizations (e.g., churches)
  • Social welfare groups
  • Politically motivated groups
  • Rotary clubs
  • Volunteer fire stations
  • Labor unions
  • Agricultural unions
  • Social and recreational clubs (e.g., country clubs)

This is not an inclusive list of non-profit organizations.

What type of insurance coverage does Non-Profit Insurance offer?

The type of insurance required by a nonprofit will depend on the individual organization. A non-profit organization may need the following coverage:
  • Commercial property insurance
  • Commercial general liability insurance
  • Professional liability insurance
  • Product liability insurance
  • Director & officer’s liability insurance
  • Event liability insurance
  • Business interruption insurance
  • Crime insurance
  • Cyber insurance
  • Commercial vehicle insurance
  • Group benefits coverage (including medical, dental, vision, life, disability and critical illness insurance)

Our team can help you understand the unique risks and needs of your non-profit organizations and help find the right combination of coverage your non-profit may need.

What affects the cost of Non-Profit Insurance?

The following factors can affect the cost of nonprofit insurance:
  • Size of the organization
  • What your non-profit does
  • Where you operate
  • Premises location (determines claim rate, crime rate, proximity to risks like rivers, nearest fire station and hydrant, and more)
  • The cost of repairing or replacing the premises, equipment, furniture, materials, and inventory
  • Premises age, type, building material, roofing, and electrical, heating, and plumbing systems
  • Damage mitigation or prevention measures like security alarms and sump pumps
  • Insurance history
  • Insurance options, including coverage, deductibles, and policy limits

We can help you review your non-profit insurance policy to answer any remaining questions about your coverage. We’ll also be able to help you figure out whether you’ve got enough coverage or if you should purchase more.

Contact us today for a quote for non-profit insurance or to learn more.

Already have Non Profit Insurance? Switching is easy

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.

Contact us today to help you with multiple options to choose from.
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