How Much Insurance Coverage Does a Nonprofit Need?

Do your nonprofit clients have enough coverage? Whether they are community organizations, senior living centers or daycares, nonprofit and human service organizations must consider their activities, property, employees, and volunteers. Every organization has its own unique set of risks, which is why it’s critical to perform an individual risk assessment to determine appropriate insurance limits.

Teacher in class with young students raising their hands to volunteer

What questions need to be answered in designing the right policy with the right liability limit?

  1. What is the mission of the organization and what unique risks does it carry? For example, an after-school program for young children will have a different set of liabilities versus a social services organization.
  2. Does your client rely on transportation services on a regular basis?
  3. How often does the nonprofit host special events, particularly those where food and alcohol are involved?
  4. Are they at risk for a cyber-attack and do they have a sound cyber security program in place?
  5. Does the organization have a board of directors, including members with high visibility or net worth?

How can you help your client build the best policy?

Shopping around to various insurance companies for the ideal insurance policy can be challenging due to lesser premiums and commissions, but there are several things you can do to guide a nonprofit or human service organization through the process.

  1. Know your state’s requirements.
  2. Confirm that adequate liability coverage is in place.
  3. Review all contracts, grants and agreements to identify any coverage limit requirements.
  4. Ensure your insurance limits have the same coverage limits to help nonprofits avoid paying too much for one type of coverage while under-insuring other coverages.
  5. Determine potential hidden costs. Review policies to pinpoint any exclusions that might require additional coverage.
  6. Discuss past claims. Work with your client to review any past claims, particularly those that can be avoided in the future.

Like any business, your nonprofit clients need the right insurance coverage to protect their organization, people, and assets. At Convelo, our underwriters have deep knowledge of the complexities of insurance coverage across the nonprofit and human service sectors and we have decades of experience providing insurance for human services organizations. We’re licensed to do business in 50 states and work exclusively through licensed agents and brokers.  We have relationships with dozens of nonprofit and human service markets and can compare policies and limits versus our insureds to reveal potential coverage gaps.  We then customize each policy to meet your client’s unique exposures – at a highly competitive price.

Learn more about our capabilities and how we can help your agency grow your nonprofit and human service business, while protecting the vital work these organizations perform today.