Altima Insurance Agency helps you choose from a variety of personal insurance and business insurance solutions.
Non Profit Insurance provided by Altima Insurance Agency
Given the shoestring budget on which many nonprofits operate, a single large and unexpected expense could lead to financial ruin. So, getting the right insurance to guard against the biggest (or baddest) risks is a wise move for nonprofits (and other businesses).
Insurance for Nonprofit Organizations
Nonprofit organizations and their leaders juggle enormous and varied responsibilities each day – from managing tight budgets to engaging volunteers and donors to fulfilling the organization’s mission. Since so many nonprofits are singularly focused on a particular cause, organizations often neglect to identify and protect against risks that could leave the organization and its board members and officers exposed.
Just as any business or organization have risks associated with employees, board members, data or fraud nonprofit organizations of all sizes are not immune. Claims and threats of litigation can be from vendors, donors, competitors, employees and even government regulators. In fact nonprofit organizations file twice as many D&O claims than public and private companies*, 85% of claims filed are employment related* and every nonprofit organization is at risk of a data breach as they keep and maintain donor financial files, employee records, client data, and even volunteer data.
Who Needs Nonprofit Insurance?
Nonprofit organizations are mostly like any other organizations, with one major difference: They don’t turn a profit. This type of organization has been granted tax-exempt status by the IRS, which requires them to have a unique form of coverage. The following are common examples of nonprofit organizations that require special coverage:
- Federal credit unions
- Charitable organizations
- Scientific organizations
- Amateur sports associations
- Public safety testing organizations
- Religious organizations (e.g., churches)
- Social welfare groups
- Politically motivated groups
- Rotary clubs
- Volunteer fire stations
- Labor unions
- Agricultural unions
- Social and recreational clubs (e.g., country clubs)
This is not an inclusive list of non-profit organizations.
What type of Insurance coverage do Non-Profits need?
The type of insurance required by a nonprofit will depend on the individual organization. A nonprofit organization may need the following coverage:
- Commercial property insurance
- Commercial general liability insurance
- Professional liability insurance
- Product liability insurance
- Director & officer’s liability insurance
- Event liability insurance
- Business interruption insurance
- Crime insurance
- Cyber insurance
- Commercial vehicle insurance
- Group benefits coverage (including medical, dental, vision, life, disability and critical illness insurance)
Our team can help you understand the unique risks and needs of your nonprofit organizations and help find the right combination of coverage your non-profit may need.
What affects the cost of Non-Profit Insurance?
The following factors can affect the cost of nonprofit insurance:
- Size of the organization
- What your nonprofit does
- Where you operate
- Premises location (determines claim rate, crime rate, proximity to risks like rivers, nearest fire station and hydrant, and more)
- The cost of repairing or replacing the premises, equipment, furniture, materials, and inventory
- Premises age, type, building material, roofing, and electrical, heating, and plumbing systems
- Damage mitigation or prevention measures like security alarms and sump pumps
- Insurance history
- Insurance options, including coverage, deductibles, and policy limits
We can help you review your nonprofit insurance policy to answer any remaining questions about your coverage. We’ll also be able to help you figure out whether you’ve got enough coverage, or if you should purchase more.
Contact us today for a quote for nonprofit insurance or to learn more.