Nonprofit organizations might be committed to doing good, but intentions alone don’t shield these organizations from potential risks. Just as businesses face risks that they need insurance for, so do many nonprofits. Nonprofit insurance helps protect nonprofits in Massachusetts from many of the potential risks that they face.
Nonprofit insurance is a type of commercial insurance that’s specifically design for nonprofit organizations. Policies are usually written as package policies, combining several coverages together so that they offer multiple protections, and nonprofits can often adjust the coverages that are in their chosen policy.
Because nonprofit organizations are exposed to many different risks, insurance companies include an array of coverage options in the nonprofit policies that they offer. Some of the more common coverage options include:
Nonprofit Liability Insurance, which might cover some liability lawsuits
Directors and Officers Insurance, which might cover leaders of a nonprofit
Commercial Property Insurance, which might cover property an organization owns
Commercial Auto Insurance, which might cover vehicles an organization owns
Special Events Insurance, which might cover specific events an organization hosts
In addition to these, some nonprofits may want commercial umbrella insurance, employment practices liability insurance, cyber insurance, business interruption insurance and/or other specific nonprofit liability insurance coverages. An insurance agent who specializes in these types of coverages can help nonprofits determine which of the various coverage options that are available make sense for their situation.
Most nonprofit organizations in Massachusetts should consider carrying insurance. Some organizations may be exposed to a substantial amount of risk that insurance can help mitigate, and even those organizations that don’t face large risks might still benefit from having coverage in place.
Nonprofit organizations that have employees may want to carry workers compensation insurance in case their employees are injured or become sick on the job. Massachusetts' workers compensation laws are specific, and requirements depend on the number of workers an organization has and what capacity those workers are employed in. Therefore, organizations that have employees should seek guidance from a qualified legal advisor and/or an informed insurance agent who can explain the general requirements.
Most insurance agents who are familiar with nonprofit liability insurance coverages can also help find workers compensation insurance if it’s needed.
Employment practices liability insurance generally protects against certain claims of inappropriate employment practices. For example, the insurance might cover a lawsuit filed by a senior employee who claims that they were illegally let go due to their age.
Nonprofit organizations that have employees can usually benefit from this coverage for obvious reasons. In these situations, nonprofits assume the responsibilities and liabilities of being an employer, and the insurance helps safeguard against many of those liabilities.
In some cases, even nonprofits that don’t have paid employees but rely heavily on volunteers might want employment practices liability insurance. Even though they aren’t paid a wage or salary, volunteers might still claim that they were discriminated against illegally. Select employment practices liability policies might extend coverage to such claims.
Again, an insurance agent who specializes in nonprofit liability insurance coverages and knows employment liability policies can help nonprofits determine whether this coverage is right for their situation.
For help finding a nonprofit insurance policy that will give your organization the coverages it needs, contact the independent insurance agents at Roger Keith & Sons Insurance Agency. Our independent agents can show you policy options from multiple insurance companies, and they have the expertise necessary to help you select the best one based on your Massachusetts organization's situation.