Your nonprofit organization specializes in serving and helping others. A lawsuit or other liability could inhibit your organization's ability to continue operations, though. You need a nonprofit commercial package with invaluable protection that meets your needs as you help others.
Learn more about tailored nonprofit coverage in Nonprofit & Small Business Insurance: Liability, Property, and Risk Management.
What a Nonprofit Commercial Package Includes
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General Liability Insurance
When visitors or clients are injured from a fall, slip or accident on your property, your organization may be liable for medical payments and other damages. General liability insurance offers classic slip-and-fall coverage for those types of accidents.
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Property Insurance
Natural disasters, fires, vandalism and other risks can happen at any time. Property insurance pays for necessary repairs and minimizes operation disruptions to the property your organization owns or rents. This insurance can cover computers and accessories, equipment and machinery, fixtures (including carpeting and lighting), inventory and supplies, and office furniture.
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Auto Insurance
Any time staff or volunteers drive a company or personal vehicle for organization activities, the nonprofit can be liable for accidents or damages. Purchase adequate auto insurance that includes liability and any coverage your state requires, such as personal injury protection or uninsured/underinsured motorist coverage.
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Product Liability Insurance
If your nonprofit sells products to raise funds—such as items created by clients or baked goods—product liability insurance protects the organization financially if someone suffers an injury or other damages because of a product you sell.
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Directors and Officers Insurance
Nonprofits rely on the leadership of directors and officers. These individuals could be sued for alleged fraud, financial mismanagement or other actions; Directors and Officers insurance covers defense and damage costs related to those claims.
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Professional Liability Insurance
When someone files a discrimination, mismanagement or sexual harassment claim against your organization, the nonprofit is liable for related costs and damages. Professional liability insurance—also known as errors and omissions or malpractice insurance—covers the organization as well as staff and volunteers for covered professional claims.
Additional coverages to consider
- Abuse Liability
- Cyber Liability
- Loss of Business Income
- Misconduct
- Negligence
- Special Event Insurance
- Umbrella Coverage
- Volunteer Medical Expense Coverage
- Workers’ Compensation
Your organization needs customized insurance that meets your needs, fits your budget and protects your assets. For examples of how a commercial package can fit different organizations, see Exercise and Fitness Centers Commercial Package Insurance.
If you want a tailored quote or to review coverages for your nonprofit, talk to your agent for a customized quote and more information on the nonprofit commercial package that's right for you.
Frequently Asked Questions
What does a nonprofit commercial package typically cover?
It usually bundles general liability, property, auto, product liability, directors and officers, and professional liability, plus optional coverages like cyber or event insurance.
Are volunteers covered under nonprofit insurance?
Many policies include volunteer medical expense coverage and liability protection for volunteers, but coverages vary by policy and insurer.
Do I need separate Directors & Officers and Professional Liability policies?
Some organizations carry both because D&O focuses on leadership decisions while professional liability covers the broader organization, staff and volunteers for professional errors or omissions.
What steps should I take before buying a package policy?
Inventory your assets, identify activities and exposures, review volunteer and staffing arrangements, and prepare a list of questions to discuss with an insurance professional.