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Tips on Purchasing Nonprofit Organization Insurance

Allison Martin
Nonprofit members decision-making

Although nonprofit organizations exist to provide resources and services for the greater good of society, they are sometimes brought under scrutiny. It is essential that they have insurance coverage to protect them during situations where an opposing party feels as if they were mistreated or injured by the activities associated with or actions committed by the organization.

Types of Nonprofit Organization Insurance

There are various forms of insurance policies for nonprofit organizations that hedge against risk and substantial monetary losses.

General Liability Insurance

This type of coverage protects organizations against damages sustained by visitors on the premises, such as a slip and fall accidents.

Product Liability Insurance

If a product sold to consumers causes injury or damage, product liability insurance covers claims.

Property Insurance

Under this coverage, the actual space that your organization occupies, along with its contents are covered. These items include:

  • Machinery
  • Equipment
  • Fixtures
  • Inventory
  • Supplies
  • Electronic Devices

If you select this coverage, be sure to that the compensation in the event of a loss is equivalent to the replacement cost and not market value.

Automobile Insurance

In the event that a vehicle is involved in an accident while conducting affairs related to the organization, damages to the vehicle and passengers are covered.

Director and Officers Insurance

This coverage protects the organization from alleged fraud and financial mismanagement carried out by directors and officers.

Volunteer Insurance

Unpaid medical costs are covered for volunteers who are injured while providing community service for the organization.

Worker's Compensation and Unemployment Insurance

Nonprofit organizations are typically mandated by both the state and federal government to carry these policies.

Worker's compensation provides medical care and wage replacement for employees that are injured while performing job-related tasks. Fortunately, the chances of incident occurrence can be reduced through activities that enhance knowledge of workplace safety.

Unemployment insurance offers a monetary benefit for up to 26 weeks to those who become unemployed and meet certain criteria. The benefit amount varies on a case-by-case basis.

Reputable Nonprofit Organization Insurance Providers

Below is a sampling of reputable insurance providers that offer coverage to nonprofit organizations.

First Nonprofit Group

Established in 1978 by a group of nonprofit leaders, this company specializes in creating customized packages to meet your charitable and nonprofit organization's specific needs. First Nonprofit Group is also ranked A- by A.M. Best.

Coverage options include:

  • General Property
  • General Liability

Request a free quote to find out if this company is right for your organization.

Rollins Insurance and Risk Management Solutions

This company, established in 1910, helps tailor policies to nonprofit organizations, sometimes resulting in decreased premiums.

Coverage options include:

  • Nonprofit Directors & Officers Liability
  • Nonprofit Property & Casualty
  • Special Events
  • Volunteer

To learn more about your options or apply for coverage, complete the online inquiry form.

Alliance Marketing and Insurance Services

Alliance Marketing and Insurance Services was established in 1965 and specializes in niche coverage for nonprofits.

Coverage options include:

  • Nonprofit Director and Officers & Officers Liability
  • Commercial Auto
  • Worker's Compensation

To learn more about your options or apply for coverage, complete the online application or call (800) 843-8550.

Great American Insurance Group

A Fortune 500 company given an A rating by A.M. Best, the Great American Insurance Group is known for its rapid response quote tool.

Coverage options include:

  • Directors' & Officers' Liability Insurance (D&O)
  • Employment Practices Liability Insurance (EPL)

To learn more about your options or apply for coverage, visit the website for Great American Insurance Group.

How to Shop for Nonprofit Organization Insurance

When shopping for an insurance policy, be sure to use a specialist who is knowledgeable of the industry and coverage options available.

Level of Risk

One of the most important factors that you must consider when shopping is your level of risk. In the event of an unexpected occurrence, how much coverage will the organization need to remain financially stable? This figure should give you a decent idea of the policy limits that should be carried.

Obtain Quotes

Once you have determined the needs of the organization, request quotes from your preferred providers. These should be analyzed during the selection process.


If a company does not have a solvency fund in place, they may not be worth considering because of their inability to pay claims in the event that they exhaust all their available funds.

Cost-Cutting Tips

There are many ways to reduce costs associated with nonprofit organization insurance. If possible:

  • Bundle up since most providers offer discounts to multi-policy holders
  • Skip the extras and only obtain the coverage that you need
  • Increase deductibles to reduce the monthly premiums
  • Check for membership affiliation discounts
  • Only add insurance riders if they will provide an amount of coverage that is worth the additional fee

Selecting a Policy

Shopping for nonprofit insurance can be a daunting task, especially considering the coverage options and vast amount of information provided in the quotes. However, it is essential to hedge against risk, and the selection process can simplified by understanding the various coverage options, how to evaluate providers and unique cost-cutting strategies.

Tips on Purchasing Nonprofit Organization Insurance