Even though standard business insurance providers may frequently obtain insurance coverage for nonprofit companies, not all plans can satisfy the specific demands of nonprofit organizations. For the greatest range, you'll want to consider the sort of charity you run and how much you're willing to spend to secure your assets while also considering the requirements of your officers, employees, and volunteers. With this information, you'll be better equipped to make an informed decision about your nonprofit organization's insurance needs.
What Does Nonprofit Insurance Cost?
According to the size and kind of organization to be insured, as well as the type of insurance coverage you select, nonprofit insurance costs might vary. On the other hand, workers' compensation insurance can range widely in price depending on the number of employees you have and the hazards involved with their job duties. 1
Who Is Responsible at a Nonprofit?
When a nonprofit isn't incorporated, those who work for it might be held accountable for any lawsuits brought against it. However, if your nonprofit is included, its board members, officials, staff, and members are generally protected from liabilities associated with the organization, much like a small corporation. In other cases, this is not the case. Individuals in these positions may be held liable if they cause harm to another person, engage in fraudulent activity that causes damage, personally guarantee debt that goes into default, mismanage funds, or fail to report an organization's income tax obligations.
How Do NonProfit insurance policies differ from others?
Insurance coverage for nonprofit organizations and those for for-profit companies are virtually identical. Because most NGOs are set up and run the same way as for-profit companies, they may take advantage of the same types of insurance coverage. An added benefit of insurance for nonprofits is that they are exposed to many of the same dangers as for-profit organizations.
The Best Nonprofit Insurance of 2022
Nonprofits Insurance Alliance
To better serve nonprofits, the Nonprofits Insurance Alliance has assembled a team of insurance experts that can assist you in finding the right coverage for your organization's specific requirements. NIA is the greatest nonprofit insurance company because of its expertise, policy alternatives, and resources.
About 94% of members of the NIA renew their insurance yearly; this represents over 21,000 nonprofit organizations. General liability, D&''O liability, flat rate D&''O, employees' benefits liability, company owner's policies, &'' business auto liability are all included in their AM Best A-rated provider portfolio.
Affinity Nonprofits
Affinity Nonprofits and Arch Insurance Company have covered over 65,000 nonprofits. Their commitment to customizing D&''O liability insurance coverage to fit a company's specific needs based on industry categorization, size, and budget led us to select them as the finest supplier. All nonprofits, including social services, trade, and professional associations; community associations; museums; aging service facilities; clubs; educational organizations; healthcare; aquariums; chambers of commerce; festivals, and humane animal societies, are covered by Affinity Nonprofits' A++ rating from AM Best and its wide range of coverage options.
The Hartford
Since its inception in 1910, Hartford has provided services to more than one million small companies. One of the world's most ethical companies, they've been recognized 12 times, and all of its policies are based on the principles of trust and honesty. The Hartford is our top pick for general liability insurance because of their high coverage levels and all-inclusive protection.
Hartford's general liability insurance covers nonprofit organizations for bodily injury, second property damage, commercial injury, copyright infringement, &'' reputational loss. Although their standard public liability insurance covers $1 million per incident and $2 million in aggregate for the policyholders who need it, the limits can be extended to $5 million if necessary.
CoverWallet
Because of its parent company's extensive experience in risk management, CoverWallet can offer low-cost insurance that can be easily customized and bundled. CoverWallet is the finest deal in nonprofit insurance because of its quick, online method. With the BASIC plan, CoverWallet clients may get general liability protection for as little as $39 a month, or they can upgrade to one of the other three policy choices. Public liability and directors' and officers' insurance are included in the $149 monthly premium for the STANDARD insurance plan. General liability, directors, officers, and commercial property insurance are all included in the PRO plan, which starts at $209 per month.
AmTrust
Small companies and nonprofits may rely on AmTrust to help them get the insurance they need to protect themselves. Workers' compensation and other basic commercial insurance plans are all available via this company. Worker's compensation insurance policies are meant to consider policy administration, legislation compliance, and volunteer concerns.
For this reason, AmTrust is also proud of its ability to manage the sometimes ignored complexities that charitable organizations encounter while obtaining this solution. As a specific example, AmTrust identifies possible "grey" situations, such as how state statutes apply to volunteers or organizational changes that might leave employees and employers susceptible under their existing workers' compensation plans.
