Protect your mission. Safeguard your service.
You founded your organization to make a difference in the world, but unmanaged risks can distract you from your mission. With robust nonprofit insurance in place, you can focus on achieving your organization’s goals without worrying about unexpected losses or lawsuits.
Common Nonprofit Coverage Types to Consider
Mavrix offers comprehensive insurance options designed to protect nonprofit organizations from everyday risks. From property damage to employee liability, our plans are tailored to meet your mission’s unique needs.
Managing Your Nonprofit’s Risks
Not-for-profit doesn’t mean not-at-risk. From natural disasters and car crashes to lawsuits and cyberattacks, there are many threats to navigate. Since nonprofit organizations typically operate on small budgets, unexpected losses can be disastrous. A thoughtful and creative insurance strategy can protect your organization from unexpected costs.
Nonprofit insurance is important for many types of nonprofit organizations, including non profit health insurance companies, educational institutions, religious organizations, social services, arts institutions and more.
Frequently Asked Questions
What types of insurance do nonprofits need?
Nonprofit organizations face many of the same risks as for-profit organizations, so they often need many of the same insurance products, although it’s important to verify that the specific policy terms meet your needs.
In addition to property, general liability and commercial auto insurance, many nonprofits need directors and officers insurance. If you have employees, employment practices liability and workers’ compensation insurance for nonprofits will provide important coverage. Cyber insurance is also worth considering, particularly if you store sensitive donor or client data or rely on internet services. You may need other types of insurance, as well. An insurance agent can help you review you coverage needs.
Is liability insurance required for nonprofit organizations?
Nonprofit liability insurance is a catchall phrase, which may refer to several different types of liability insurance products. All of them are designed to protect nonprofits from the financial impact of third-party claims. Your liability insurance needs will vary depending on the type of organization you operate. Some of these insurance products may be legal requirements.
- General liability insurance for nonprofits provides coverage for third-party claims alleging bodily injury, property damage, advertising injury or personal insurance. Although it is not typically required under state law, organizations in some industries may need to maintain coverage as part of their licenses requirements.
- Auto liability insurance, on the other hand, is typically required under state law. If your nonprofit organization has vehicles, you’ll need to cover them with commercial auto liability insurance.
- Although they may not be legally required, your nonprofit organization may also need other types of liability insurance, including directors and officers liability insurance, employment practices liability insurance, professional liability insurance, and possibly even medical malpractice liability insurance.
What does directors and officers (D&O) insurance cover for nonprofits?
Nonprofit D&O provides coverage for lawsuits accusing your organization or board members of wrongdoing, breach of duty, misuse of funds and certain other allegations. These lawsuits may come from many sources, including donors, vendors and government agencies.
Nonprofit board members can be held personally liable for the actions they take while serving on a board. Directors and officers insurance protects them by providing coverage for legal costs in the event of a covered claim. Other types of liability insurance, such as general liability insurance, do not provide this coverage.
Do nonprofit insurance policies cover volunteers?
Volunteers occupy a gray area. Although they act like employees in many ways, they’re not technically employees. As such, they may be excluded from many workers’ compensation insurance policies. However, it is possible – and important – to secure insurance coverage for volunteers. Otherwise, your organization could be on the hook for costs if a volunteer is injured.
Commercial general liability insurance often covers volunteers. It’s also possible to secure volunteer accident insurance. The important thing is not to assume that you have coverage. Talk to your agent, read your policy terms and verify that volunteers are covered.
How much does nonprofit insurance cost?
Your nonprofit insurance costs will depend on several factors, including your size, location, and sector. For example, a large nonprofit that receives substantial donations may pay more for liability insurance than a smaller nonprofit. Likewise, a nonprofit that works with children and vulnerable populations may have greater exposures and higher insurance costs.
We will work with you to identify coverage priorities and craft a nonprofit insurance strategy that works with your budget while protecting your organization from unexpected losses that could jeopardize your mission.