Compare any two nonprofits in your community, and you’ll find major differences. Some have public facilities, such as a place of worship, an arts center or a food shelf. Others may rely on a group of volunteers to carry out their mission. Others still may maintain a fleet of vehicles to handle deliveries or freight.
Nonprofit services vary widely, and so do their risk levels.
Unfortunately, many nonprofits end up paying more for insurance than they have to. So-called cookie-cutter policies save time and money for insurers. However, like an ill-fitting garment, your organization may lack essential coverage in certain areas while paying for policies that are inapplicable — like vehicle coverage when you don’t have any vehicles.
In an era when donations come at a premium, lackluster coverage isn’t the best use for your hard-working dollars.
Get complete coverage at the best value by switching to an independent company like Minnwest Insurance Agency.
- Tailored plans: Get only the coverage you need. No more, no less.
- Gap-free coverage: We shop for policies from agencies we’ve vetted and approved, so we can recommend coverage that offers you the best protection at the best value.
- Personal approach: Your nonprofit works with a dedicated agent based in your community who takes time to get to know your organization and your needs. Through relationships come meaningful connections and a true understanding of our customers.
What type of coverage do nonprofits need?
Insurance provides your nonprofit financial protection when the unexpected happens, including fire, accidents, injuries, lawsuits, hacking and theft. As you shop for commercial policies they typically fall under one of two buckets: Liability and property insurance.
Liability insurance for nonprofits
What is liability insurance? This coverage offers financial protection should your nonprofit be found liable for injury, damage or harm.
You ask, but do we really need liability coverage? We get it. It’s difficult to imagine what could lead to a lawsuit, particularly if you have top-notch board members, employees and volunteers.
First, if your organization has interactions with people, something could happen. Even the best of us are capable of causing harm or damage, whether it’s accidental, the outcome of a wrong decision or a failure to act.
Second, society often equates lawsuits to greed. That’s not always true. People — or insurance companies for that matter — often sue to get reimbursed for expenses that arise from injury or damage. That’s where liability protection can be the key to keeping your doors open.
For your consideration, here are types of liability coverage and how they protect your nonprofit.
Commercial general liability: This provides coverage for injuries and damages that may arise during services, operations or actions performed by employees or volunteers. This insurance also extends to incidents involving negligence. Even if you are leasing your facility, you can still be held liable if an accident happens because it’s under your care and control.
Directors and officers liability: Protects directors and board members, as well as employees and volunteers, from personal liability should they be named in a lawsuit filed against the nonprofit. Also provides reimbursement for legal fees.
Workers’ compensation: Covers medical costs and lost wages for employees, contractors, volunteers and board members who get hurt. Though not all states require that employers carry workers’ comp, it’s strongly recommended. Otherwise, an injured party could file a civil lawsuit against your organization to recover their medical expenses.
Property insurance for nonprofits
Property insurance: Standard for any nonprofit with a physical address. Should something happen to the location — fire, severe weather or a break-in — this policy helps you replace facilities, furniture, fixtures, inventory and equipment, or whatever’s needed to get back to business.
Crime or employee dishonesty: Usually bundled with commercial property insurance. Nonprofits can be vulnerable to theft of donations and cash accounts. All it takes is one unscrupulous employee or volunteer to cause a devastating loss, but coverage can help you recover.
Umbrella policy: Need extra coverage? Umbrella policies provide customized coverage, granting much-needed peace of mind.
Protect your mission: Property and liability coverage for nonprofits
Finding an independent insurance agent is as easy as making a phone call.
Set up a meeting with one of our helpful agents on the insurance team at Minnwest Insurance Agency. We’re located in hometowns throughout Minnesota and southeastern South Dakota. As independent agents, we can compare rates from numerous insurance companies, so you can get the best coverage at the best value for your nonprofit.
Minnwest Insurance Agency, Inc is an affiliate of Minnwest Bank. Products offered through Minnwest Insurance Agency, Inc are: Not a deposit | Not FDIC insured | Not insured by any federal government agency | Not guaranteed by the bank or an affiliate of the bank | May go down in value (if applicable)
