Nonprofit Organization Insurance (Quotes, Cost & Coverage)

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How much does commercial insurance cost?

Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.

What kind of business insurance do I need?

Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.

What is a Certificate of Insurance?

A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.

Is business insurance tax deductible?

Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.

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Nonprofit Organization Insurance

Nonprofit Organization Insurance

Nonprofit Organization Insurance. If you are in charge of fraternal organization, charitable foundation, or house of worship, then you must take steps to protect your non-profit from liability by obtaining a high-quality insurance policy. Your non-profit organization, or NPO, must shield itself from financial loss with a policy that is tailored to the custom needs and inherent risks that you face.

If your NPO handles large amounts of revenue and works with a lot of people, it's doubly important to review your nonprofit organization insurance needs with a licensed agents.

Nonprofit organization insurance protects your 503(c) from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.

Coverage Types Nonprofit Groups Should Consider

There are more than 1.5 million non-profit, tax-exempt organizations operating in the United States. Around two-thirds of them are public charities, while less than 100,000 are private foundations. Civic leagues and fraternal organizations account for nearly a half-million of these NPOs, and non-profits pay around 10 percent of all salaries and wages in the country, making up around 5.5 percent of the gross domestic product.

Although they don't operate for profit, non-profit organizations must protect their assets and finances in much the same way as businesses do. Business insurance policies for these types of groups are specially designed for the individual coverage needs of each group. Being fully covered against damage and loss is important to the health of the organization. Some of the different types of nonprofit organization insurance coverage for non-profits to think about include:

  • Commercial liability insurance. General purpose insurance that protects the non-profit from liability claims is an important purchase. This covers accidents and injuries on the premises as well as damages caused by representatives of the non-profit elsewhere.
  • Vehicle insurance. Obtaining vehicle insurance for commercial purposes is important for non-profits. Personal vehicles used in the course of commercial activity are typically not covered on a personal auto policy.
  • Property insurance. Property insurance covers damage to your property, including your organization's building, equipment, and other items.
  • Director's and officer's insurance. This type of insurance covers directors' and officers' liability insurance to cover specific liability incurred by these professionals.

NPO Insurance Protection

While many charity groups and non-profits are under the misconception that they are not at risk for liability and claims from others, the truth is that they are just as vulnerable. The actions of representatives of the non-profit or charity, including its volunteers and its employees, are the responsibility of the non-profit. As an organizer or founder or the non-profit, it's crucial that you take measures to mitigate any claims by having a good nonprofit organization insurance policy in place.

Non-Profit Liability Coverage

In today's society, there are many litigious people, and even the most frivolous of claims can turn expensive for the non-profit agency. A good non-profit insurance policy has a sufficient level of liability coverage. This type of coverage protects the non-profit from third-party claims for property damage or bodily injury. It can also cover court costs and fees for legal representation.

Some instances that necessitate a strong nonprofit organization insurance liability policy:

  • Organizations that own the building housing their non-profit. This is particularly true if the NPO owns the building in which it conducts its business, since most mortgage brokers and lenders require that the NPO keep coverage as a condition of their loans. If running the NPO from home, a homeowner's policy may not be sufficient; check with an agent to find out if you should purchase a more extensive policy.
  • The nonprofit rent the building where they conduct their operations. If an NPO rents the building in which it operates, then most rental companies require a business insurance be in place prior to commencement of operations, just as if the NPO were a traditional business entity.
  • Charity owes a substantial amount of money to a lender. Even if the building in which the NPO operates is not financed, if the NPO owes a substantial amount for operational loans or other loans, then it makes sense from the lender's perspective to require business insurance. The lender wants to ensure that a claim against the NPO does not cause it to go bankrupt, which would cause a default on the loan.
  • The nonprofit rents a venue to hold a fundraiser. When holding a gathering at a banquet hall, hotel, or other venue, the NPO must have a sufficient amount of insurance coverage to cover the people and the venue's property in the event of an accident or other occurrence.
  • Injuries on the job for employees or volunteers. Bodily injury and worker's compensation are both essential for NPOs to cover injuries or illnesses related to the job or volunteer service.

Most insurance experts recommend that the basic NPO carries at least $1 million in nonprofit organization insurance general liability coverage. The more your organization can afford, the better.

Commercial Auto Insurance for Nonprofits

Another area to consider is commercial vehicle insurance. If the NPO owns a van, truck, or car that it uses for business operations, then it is important to carry commercial insurance. Likewise, if the charity's members sometimes use their private cars while performing business for the organization, then a non-owned or vehicle-for-hire policy is a good investment, since it protects the organization from liability and claims involving those types of vehicles.

Buying a Non-Profit Insurance Policy

Check with your insurance agent for specific types of nonprofit organization insurance insurance and riders that you may need to consider for your non-profit's specific needs to guard against potential liability and to cover any claims against the NPO that might affect its financial future.

Small Business Economic Data & Insurance Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.

Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.

Small Business Information

Read up on economic statistics and insurance information that relates to small business owners in the United States.

Small Business Economic Data In The United States

Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:

  • In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
  • Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
  • Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
  • Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
  • In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
  • There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
  • Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
  • Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:

  • Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
  • Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
  • Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.

Additional Resources For Miscellaneous & Non-Profit Insurance

Find informative articles on small business commercial insurance for miscellaneous and non-profit 501(c)(3) businesses.


Miscellaneous And Non Profit Insurance

For 501(c) Non-Profits - Directors And Officers Liability Insurance has become an increasingly important policy to have. D&O coverage protects insured directors or officers against claims involving allegations of wrongful acts occurring while performing their duties as such. The insurance is divided into two separate coverages:

Side A coverage reimburses the individual directors and officers for payments made for loss each has incurred because of wrongful acts.

Side B coverage reimburses the corporation for the payments it has made on behalf of the directors or officers themselves.

General Liability is a foundational policy for almost any business. Most companies do not have any control over the final cost of injuries to a person injured because of their operations, products, or services. The person injured may be a young child, a blue-collar worker, a surgeon, or a homeless person.

The cost of the injuries may be comparatively minor or run into the millions of dollars, depending on the person and the extent of his or her injuries. Do you have sufficient assets to pay such a loss?

Commercial general liability insurance is designed to help you protect your assets with three main coverages:

  • Coverage A: Bodily Injury and Property Damage Liability
  • Coverage B: Personal and Advertising Injury Liability
  • Coverage C: Medical Payments


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Nonprofit Organization Insurance
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