Nonprofit, Risk and the 2024 Insurance Market

From new developments in artificial intelligence (AI) to continued severe weather patterns across the U.S., there are several factors expected to impact the insurance market for nonprofit and human service organizations in 2024.

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AI & Technology

Like any other industry, nonprofits want to advance their mission, increase efficiencies, and attract strong talent, which is why some have turned to AI. This technology can support operations and fundraising efforts, while saving time, costs and resources. But it is not without its fair share of risk.

Take the emergence of ChatGPT. It’s helped streamline communications and enhance workflows, yet there are significant concerns regarding its accuracy and authenticity. Nonprofits must take the necessary steps to ensure that AI-generated content isn’t copyrighted or trademarked by confirming results for accuracy and value. Otherwise, your client could be held liable for any inaccuracies or infringement. The right coverage (errors and omissions liability/media liability/etc.) can help protect against such potential claims.

Extreme Weather

When it comes to weather, the forecast remains unpredictable. Over the past year, we’ve seen an increase in wildfires in the Western states, tornadoes across the Midwest, and hurricanes and extreme winter weather up and down the East Coast. Extreme weather conditions of any kind can have a big impact on insurance rates, including nonprofit and human service operations, which is why it’s crucial to develop a comprehensive weather preparedness plan to protect the organization, staff, clients, and volunteers in the year ahead. This plan should include a review of your client’s loss prevention strategies as well as their property, general liability, auto, excess and even workers’ compensation policies to determine if all structures and individuals are properly covered and information is up to date.

Outsourced Staffing

Nonprofit and human service organizations remain understaffed despite the demand for their services and outreach. As such, there’s been a trend in outsourcing talent to support the organization’s mission. From human resources and payroll support to marketing and IT/technology, many services will continue to be outsourced to third parties in 2024. Despite the many advantages of the situation (increased efficiencies, access to expertise), there are also risks particularly regarding sensitive or confidential data sharing. Be sure your clients have strong security and compliance processes in place to mitigate these risks along with the proper insurance coverage.


Nonprofits and human service organizations have been the target of cybersecurity attacks for some time now, but the risk has significantly increased over the past couple of years especially given the amount of personal and sensitive data they collect from donors, patients, clients, volunteers and employees. From stored patient details to a donor’s personal financial information, organizations can be held liable if there is a breach in security. Make sure your client’s staff has access to cyber risk training and that their cyber liability insurance policy is comprehensive enough to protect them in 2024 and advise them to create a cyberattack plan to prepare for such an event.

At Convelo, we have decades of experience providing insurance for human services organizations and have deep knowledge of the complexities of insurance coverage for today’s nonprofits. Learn more about our capabilities and how we can help you grow your business, while protecting the vital work of nonprofit and human service organizations today.