Non-Profit Insurance

What is Non-Profit Insurance?

Non-profit insurance is a type of policy designed to provide coverage to organizations that do not operate for profit. It includes several types of coverage such as general liability, property, directors and officers (D&O), and workers' compensation. Each of these coverages can protect your organization in different scenarios.

General Liability Insurance: This coverage protects your organization against third-party claims of bodily injury, property damage, and advertising injury. For example, if a volunteer accidentally damages someone's property during an event, general liability insurance can cover the costs of repairing or replacing the damaged item.

Property Insurance: This coverage protects your organization's physical assets, such as buildings, equipment, and inventory, against theft, fire, vandalism, or natural disasters. For example, if your office is damaged by a flood, property insurance can cover the costs of repairing or replacing the damaged items.

Directors and Officers Insurance: This coverage protects your organization's directors and officers against claims of wrongful acts, such as wrongful termination, discrimination, or mismanagement. For example, if a volunteer accuses a director of discriminating against them, D&O insurance can cover the costs of defending against the claim.

Workers' Compensation Insurance: This coverage protects your organization against claims of workplace injuries or illnesses. For example, if a volunteer gets injured while doing a task for your organization, workers' compensation insurance can cover the costs of medical treatment and lost wages.

What Factors Affect the Cost of Non-Profit Insurance Premiums?

The cost of non-profit insurance premiums can vary depending on several factors such as:

Type of Coverage: The more coverage you need, the higher the premium will be.

Location: The state you operate in can affect the premium because of different insurance regulations and risks.

Size of Organization: The larger the organization, the higher the premium will be.

Risk Exposure: The more risks associated with your operations, the higher the premium will be. For example, if you organize events with many volunteers, the risk of accidents or injuries is higher which can increase the insurance cost.

Does Non-Profit Insurance Cover Volunteer Related Incidents or Accidents?

Yes, non-profit insurance can cover volunteer-related incidents or accidents. Volunteers are an integral part of non-profit organizations, and accidents can happen. General liability and workers' compensation insurance can cover damage caused by volunteers while they are working for your organization. However, note that volunteers are not employees, and they may need to sign liability waivers or volunteer agreements before engaging in any activity for your organization.

Are There Any Exclusions or Limitations in Non-Profit Insurance Policies?

Yes, like any insurance policy, non-profit insurance policies may have exclusions or limitations. Common exclusions or limitations include:

Criminal Acts: Intentional and criminal acts are not covered by insurance policies.

Employee Dishonesty: Losses resulting from employee dishonesty or theft are not covered unless specific crime coverage is added to the policy.

Auto Liability: If your organization owns or operates vehicles, auto liability insurance may need to be purchased separately.

Professional Services: If your organization provides professional services, such as legal or medical advice, you may need to purchase professional liability insurance separately.