Nonprofit organizations may pursue the general good, but their sentiments and activities don’t offer much protection against potential risks. In fact, the work that nonprofits do frequently exposes them to substantial risk. Nonprofit insurance helps protect Massachusetts nonprofit organizations from a range of risks that they may face.
Nonprofit insurance policies are special commercial policies that have been adapted to meet the insurance needs of nonprofit organizations. Most policies are crafted as package policies, combining several coverages together so they offer multiple protections.
While coverage needs vary greatly from one nonprofit organization to the next, the vast majority of nonprofits in Massachusetts should have at least some insurance coverage in place. Few organizations are free from risk, and purchasing a policy is generally an affordable way to protect against many potential risks.
Because nonprofit organizations have varied coverage needs, there isn’t one set of coverages that every nonprofit policy comes with. Instead, there’s an array of coverage options that many policies make available as either standard or optional protections. Some of the more commonly selected coverages are:
Commercial Property Coverage, which may cover organization-owned buildings
Commercial Auto Coverage, which may cover organization-owned vehicles
Special Events Coverage, which may cover official organization events
Nonprofit Liability Coverage, which may cover certain liability lawsuits
Directors and Officers Coverage, which may cover an organization’s leaders
Commercial Umbrella Coverage, which may afford additional liability coverage
Many nonprofit organizations should at least consider including employment practices liability coverage in their insurance policy. This coverage normally protects against claims that accuse an organization of illegal and/or improper employment practices, such as prohibited discriminatory practices, and its protections aren’t necessarily limited to employees. Some policies’ coverage may cover valid claims brought by either employers or volunteers.
Nonprofits that would like to learn more about this coverage and how it may help protect against claims brought by volunteers should speak with a knowledgeable insurance agent who specializes in nonprofit policies. A specialized agent will be able to explain what sorts of incidents this coverage protects against, and they can check how a specific policy’s coverage would apply to volunteering situations.
Nonprofits in Massachusetts that employ workers typically need workers compensation coverage as a safeguard against job-related injuries or illnesses that those workers might sustain. Workers compensation, however, is frequently purchased as a stand-alone policy that’s separate from a nonprofit policy. An insurance agent who helps with nonprofit policies can likely help with securing a workers compensation policy as well.
Insurance companies consider many factors when setting nonprofit policies’ premiums, so policies’ costs vary. Along with the coverages and limits selected by an organization, some of the other items that influence rates include:
Where a nonprofit’s headquarters are located
What physical assets a nonprofit insures
What types of services a nonprofit provides
What events a nonprofit puts on
Whether a nonprofit has filed claims in the recent past
Despite the variance in cost, it’s almost always more financially prudent to carry insurance than risk experiencing a major disaster or lawsuit without protection in place.
For help finding a nonprofit policy that’s tailored to your organization’s specific situation, contact the independent insurance agents at The Feingold Companies. Our agents are able to show you nonprofit insurance policy options from several insurance companies in Massachusetts, and they have the expertise necessary to help you make an informed policy selection.