839 North Main StreetProvidence, RI 02904

Insurance professionals that have your back

Auto

We are happy to assist you in selecting the best coverage.

Get a Quote

Home

We get you the right coverage for the right price.

Get a Quote

Business

We offer free quotes and dedicated personal service.

Get a Quote
January 29, 2025
Agency

Understanding Nonprofit Insurance

Organizations in the not-for-profit sector may often set altruistic and admirable goals while putting profits and wealth on the back burner. However, all the well-meaning intentions in the world may not change your nonprofit’s potential for being involved in accidents or facing losses caused by criminal acts, natural disasters and other situations beyond your control. Fortunately, you can recover from losses by understanding nonprofit insurance and assembling appropriate loss control measures.

What Is Nonprofit Insurance?

As with business insurance that a for-profit entity might purchase, nonprofit insurance is typically a multifaceted form of coverage that may require a combination of several types of policies. Given the many types of nonprofits that make up this sector and the significant variance in their operations and goals, relevant risks and exposures can also vary greatly. Your nonprofit insurance portfolio can offer robust financial protection by understanding your coverage needs and securing the right policies.

What Types of Insurance Do Nonprofits Need?

Although your nonprofit’s coverage needs are unique, many types of insurance are typically valuable for those in your sector. Consider prioritizing the following:

  • Directors and officers liability insurance can help pay for losses arising from allegations that your nonprofit’s board members or leaders committed errors that harmed the organization.
  • General liability insurance can offer aid if your nonprofit is accused of causing third-party bodily injuries, property damage or personal and advertising injuries.
  • Professional liability insurance may assist with costs if a client or customer accuses your organization of providing incorrect, negligent, late or otherwise inadequate services and guidance.
  • Commercial property insurance may provide funds if your nonprofit’s tangible assets, including its building, equipment and furniture, are damaged by covered incidents.
  • Business interruption insurance may help pay for lost revenue and other expenses if you must delay or cease operations temporarily.
  • Workers’ compensation insurance can provide financial assistance for medical bills, lost wages, legal costs and other consequences of employees’ on-the-job injuries and illnesses.
  • Employment practices liability insurance can help pay for legal fees and losses if an employee, temporary worker or volunteer accuses your nonprofit of improper workplace practices.

Your nonprofit’s operations may dictate further coverage needs. For example, commercial auto insurance is likely needed if you use motor vehicles regularly. Similarly, cyber liability insurance is advisable if you store, transmit or otherwise work with sensitive data.

Get the Right Coverage

Contact Lefebvre Insurance Agency, Inc. in Providence, RI, today to learn more about nonprofit coverage options or to get a free quote.

 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 

Categories: Nonprofit

Leave a Reply

Your email address will not be published. Required fields are marked *