Nonprofit Insurance Coverage. Maintaining and Updating Your Nonprofit’s Insurance Policies

Insurance is essential to protecting your nonprofit from certain liabilities that may occur as a result of operating your programs and activities.

Keep your nonprofit protected by making sure that your insurance coverage is renewed and updated to reflect the coverage your organization needs.

While the type of coverage and the extent of that coverage depend upon the activities and size of each nonprofit, it is important to keep these factors in mind:

Check the Dates of your Policy

Not every organization will have insurance policies that expire at the end of the calendar year. Make sure you know when your current insurance policy expires and note on your calendar at least a month in advance of the expiration date so that you can renew your coverage.

Determine What Types of Insurance Your Organization Needs for the Upcoming Year

Your organization may be experiencing changes that will affect your insurance needs. The addition or reduction of staff, volunteers, vehicles, and locations can all impact your insurance policy. Speak to your insurance broker about how these changes may affect your policy.

General liability insurance is considered a requirement, but it is not the only type of coverage your organization may need.

Here are some other types of coverage that may be required for your organization:

      • Bonding for those persons who handle funds
      • Professional liability insurance
      • Director’s and officer’s liability insurance to protect board members.
      • Property and automobile insurance
      • Worker’s compensation insurance
      • Employment practices liability insurance

Understand the Policy Limits of the Organization’s Insurance Policies

Your organization may already have coverage, but do you know the specifics of this coverage?  Ask yourself these questions to determine how well you are covered:

      • What events are covered?
      • What is excluded?
      • What are the coverage amounts?
      • What are our deductibles?
      • Are there any gaps in coverage?
      • Are the policies occurrence or claims made policies?
      • Are employees and volunteers covered?