Non profit insurance is a type of package policy insurance that’s designed to meet the unique needs of non profit organizations. As package policies, non profit policies contain several individual policies within them. The individual policies work together to provide cohesive coverage that can be tailored to a specific non profit’s needs.
The protections that a non profit organization needs depend on the nature of work that it does and the assets it has. A non profit may want any of the following coverages:
Even though a couple of these coverages are referred to as “business” or “commercial” insurances, they’re useful to non profit organizations and are widely available in non profit policies.
In Massachusetts, non profit organizations that have employees are generally required to carry workers compensation insurance (just as for-profit businesses that have employees are required to carry). Workers compensation coverage usually isn’t included in non profit package policies, so organizations that need it typically purchase a stand-alone workers compensation policy that’s separate from their non profit policy. Getting a stand-alone policy is usually easy, though, because most agents who help organizations with non profit policies can also help organizations find workers compensation policies.
In general, non profit liability insurance protects organizations from covered incidents in which they’re held financially responsible for property damage or personal injury. The coverage may pay both legal defense costs and settlements associated with covered incidents. (Exactly what incidents are covered by a particular policy is determined by the policy’s terms, conditions and exclusions.)
Most, if not all non profit organizations in Massachusetts are exposed to at least a few risks and, therefore, should consider getting a non profit policy. The perils that organizations face vary. A new non profit in Springfield, MA, that doesn't have and resources will likely need fewer individual policies than a non profit that has multiple office locations. Almost all non profits face at least a few potential risks that they may want to insure against, though.
Just a few specific examples of organizations that may want a non profit policy include:
For help selecting a non profit insurance policy, organizations can contact an independent commercial insurance agent who’s licensed in Massachusetts. Most commercial agents help both businesses and non profit organizations with their insurance needs.
Non profit organizations don’t define success through their earnings, but they share many commonalities with for-profit businesses. Both non profits and businesses both generally have budgets, personnel, and property -- and they’re both exposed to risks. Just as businesses use business insurance to protect them from the potential perils they face, non profit organizations in Massachusetts should insure themselves from the risks they face with non profit insurance.