Nonprofit Insurance in Massachusetts

What nonprofit liability insurance coverages can organizations get?

There are many nonprofit liability coverages that are available. While which ones a particular organization should select depends on the organization’s specific situation, most are wise to choose multiple coverages. Some of the most common ones include:

• General Liability Coverage: Typically insures against common accidents that result in injuries or property damage to third parties, and often also includes defamation protections.
• Professional Liability Coverage: Typically insures against errors made by a nonprofit’s employees or volunteers if they give professional advice or apply a specialized skill.
• Directors & Officers Liability Coverage: Typically insures against claims that a board member or other leader’s decision negatively impacted the nonprofit organization.
• Employment Practices Liability Coverage: Typically insures against allegations of discrimination that a nonprofit organization’s employees or volunteers could make.
• Cyber Liability Coverage: Typically insures against various digital risks, such as data breaches, website attacks, phishing campaigns, and ransomware.
• Social Engineering Fraud Coverage: Typically insures against financial losses from fraudulent or deceptive misrepresentations.
• Special Events Coverage: Typically provides additional liability protections for the duration of an event that a nonprofit is hosting.
• Umbrella Coverage: Typically provides additional liability protections for covered claims that exceed another nonprofit liability insurance’s limit.

What property coverages can nonprofit organizations get?

Property coverages are generally available for most assets that nonprofits might have. The options that policies offer usually include:

• Commercial Building Coverage: Might insure any buildings owned by a nonprofit organization.
• Tenants Betterment Coverage: Might insure improvements and upgrades that a nonprofit organization makes to a facility that’s leased.
• Commercial Contents Coverage: Might insure items that a nonprofit owns and keeps at its location, ranging from office equipment to products.
• Inland Marine Coverage: Might insure items when a nonprofit is taking them to and from fundraisers, conferences, or other events, and also between other locations.
• Commercial Auto Coverage: Might insure commercially registered vehicles that a nonprofit owns.

When do nonprofit organizations need to get liquor liability coverage?

Liquor liability coverage is often recommended anytime alcohol is served at a nonprofit event. For example, a nonprofit organization might need this if alcohol is being served at an exclusive donor event, public fundraiser, or other event. Without coverage, any incidents involving an intoxicated attendee may not be covered.

If liquor liability is needed just for one event, an insurance agent who knows nonprofit liability insurance coverages well should be able to secure short-term liquor liability. This may procured on its own, or as part of an event coverage package.

How much do nonprofit organizations pay for their insurance?

The cost of insuring a nonprofit can vary a lot, but most organizations will find that a policy can fit within their budget. Organizations can get different quotes for the coverages they need by working with an independent insurance agent.