Non Profit Insurance

What Does Insurance for Non Profits Cover? 

The following are common coverages that nonprofits may need, are available in most packages, or can be added as supplemental policies. Working with you, one of our brokers will help identify which coverages are in your best interest and obtain quotes from multiple insurers to get you the best comprehensive coverage for your money. 

Directors & Officers Insurance 

As a Director, you can be held personally liable in a number of ways. From an unintended conflict of interest to wrongful dismissal, there are many risks directors and officers face. Directors and officers insurance provides funds to cover defence costs and and legal liability that can quickly pile up, whether the accusation is legitimate or not. Sources of legal action against directors and officers can come from employees, creditors, competitors, regulatory authorities, and more.  

Commercial General Liability

Commercial General Liability also known as CGL insurance, covers the day-to-day risks involved with operating a non-profit organization. The policy automatically covers actions of employees and usually volunteers, insurer dependent. Additionally, the policy will typically cover damage to the premises you lease (Tenant’s Legal Liability) as well as any damages you may cause to your neighbors.  

Non-profit organizations usually invite members into their premises. The risks associated with this include bodily injury and property damage to your invitees  For example, in case someone slips or your non-profit is accused of being the reason for their property damage/loss, CGL is essential for any business.

Employment Practices Liability 

Employment Practices liability is a type of insurance that covers wrongful acts emerging from the employment process. It’s designed to protect the business or individual being accused of an “employment wrongful act” by covering legal costs and settlements. Eg. Unsafe workplace, harassment, wrongful termination. 

Crime Insurance (Employee Dishonesty) 

Another common exposure to Non-profit organizations, is risk of theft of it’s financial assets. This can involve an employee acting alone or in collusion with others to redirect funds away from the organization. eg. False Vendor, duplicate payments to a different account, etc. , other types of Crime losses come from  a Third Party in a more traditional type of loss – like counterfeit cheque fraud, robbery, burglary, hold up, theft from a custodian home, etc. Organizations can transfer this exposure from the organization to the insurer in very small amounts of Crime coverage eg. A $5,000 limit, to really large amounts held in accounts. eg. $500,000 or $1,000,000 limits, depending on how much money the organization holds.   

Cyber Insurance 

As hackers and cyber criminals get more sophisticated, carrying cyber & privacy liability, ransomware insurance and cyber crime (fraud) or social engineering insurance for non profit is crucial. If your business experiences a cyber attack, cyber insurance provides solutions to help protect and restore your nonprofit, reputation, and your customer’s trust. Cyber insurance will also cover expert IT investigation costs and your legal expenses to attempt to proactively avoid a lawsuit, or in extreme cases in dealing with a lawsuit. As cyber-attacks are on the rise, cyber insurance coverage acts as a risk management solution. With the right cyber liability policy, you could avoid the expenses and harm to your brand that can otherwise result from a cyber breach. 

Property Insurance 

Protecting your non profit’s property and contents is important in recovering from a loss. Property insurance covers the building you operate out of (if owned), Leasehold improvements if leased,  as well as the list of equipment, electronics, furniture, you have. In cases of an insured loss, property insurance will provide funds to repair or replace damage to your property and help you get back to running your non-profit as quickly as possible. 

Legal Expense Insurance  

Sometimes there are legal issues that crop up for nonprofits that fall outside the scope of traditional insurance and yet, you may still have to pay a lawyer to help you resolve the issue.  For example, contractual issues with service providers, disputes with landlords, disputes with the government.  For these types of instances, we can look to place a small Legal Expense insurance policy to transfer the risk of these necessary legal expense costs to an insurer.  

Another great benefit of legal expense insurance is that there is a free Legal Advice Help Line available, where you can call in with day-to-day issues and obtain advice from specialty lawyers – without having to file a claim. For example, speaking with a specialist employment lawyer, prior to terminating a staff member.