Nonprofit Insurance in Massachusetts
Nonprofit insurance policies make specialized insurance coverages available to charitable organizations. Insurance policies are quite flexible, so they can meet many nonprofit organizations’ needs.
An insurance agent who specializes in these policies can help nonprofits find a particular policy that’s adjusted for their coverage requirements.
Tenants Betterment Coverage
Commercial Contents Coverage
Commercial Auto Coverage
What is nonprofit insurance?
Charitable organizations are exposed to a variety of risks, including some that for-profit businesses face and some that are more particular to nonprofit organizations. Nonprofit insurance can help Massachusetts charities protect themselves from many of the risks that they face.
Nonprofit insurance policies make specialized insurance coverages available to charitable organizations. Insurance policies are quite flexible, so they can meet many nonprofit organizations’ needs.
What Massachusetts organizations should have nonprofit insurance?
Massachusetts 501(c)3 organizations generally should carry this insurance. Not-for-profits that have different tax structures may also consider this or a similar insurance option.
Many different types of organizations have the 501(c)3 designation and might want some type of nonprofit policy. For example, the insurance may be appropriate for the following if they’re not-for-profit:
- Churches, synagogues, mosques, temples
- Preschools, afterschool programs, summer camps
- Art museums, theaters, community culture programs
- Environmental advocacy groups, social justice groups
- Animal rescues, land conservation groups
While these and many other organizations can benefit from the nonprofit property insurance and nonprofit liability insurance protections that a policy comes with, not all organizations need the same specific coverages. An insurance agent who specializes in these policies can help nonprofits find a particular policy that’s adjusted for their coverage requirements.
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What types of protections do nonprofit policies make available?
The coverages that nonprofit policies offer include both nonprofit property insurance coverages and nonprofit liability insurance coverages.
Nonprofit property insurance coverages primarily insure assets that an organization has, protecting these assets against loss and/or damage. Some examples of nonprofit property coverages are:
- Commercial Building Coverage, which may insure an owned building
- Tenants Betterment Coverage, which may insure a leased space’s build-out
- Commercial Contents Coverage, which may insure equipment and supplies
- Commercial Auto Coverage, which may insure commercial vehicles against damage
(Auto coverage usually also provides liability protection for accidents.)
Nonprofit liability insurance coverages primarily insure against situations where an organization could be held liable for harm that another party incurs. Some nonprofit liability insurance coverages that organizations might want include:
- General Liability Coverage, which may cover basic accidents involving third-party injuries or property damage
- Professional Liability Coverage, which may cover mistakes made by volunteers or employees
- Directors & Officers Liability Coverage, which may cover leadership decisions that have negative consequences
- Employment Practices Liability Coverage, which may cover discrimination claims filed by volunteers or employees
- Cyber Liability Coverage, which may cover successful online attacks and other data breaches of sensitive information
- Social Engineering Fraud Coverage, which may cover financial losses caused by fraudulent misrepresentations
- Special Events Coverage, which may cover individual events with extra short-term liability protection
- Umbrella Coverage, which may provide additional liability coverage for expensive claims
(Directors and officers coverage is often abbreviated “D&O” coverage.)
When should nonprofit organizations have liquor liability coverage?
Liquor liability coverage generally should be purchased if a nonprofit is sponsoring any event where alcohol is present. While this includes festivals and special events that a nonprofit puts on, it also can include organization-wide gatherings and smaller groups if alcohol is regularly served.
How much do nonprofit policies cost
Premiums for nonprofit policies vary, but they tend to be affordable. An independent insurance agent can help nonprofits compare policy options from different insurance companies, and determine which option is best for them.
How can Massachusetts organizations get nonprofit insurance?
For help finding nonprofit insurance, get in touch with the independent insurance agents at Scotti Insurance Agency. Our agents have worked with many organizations throughout Massachusetts, and we have the expertise necessary to help you customize a policy for your organization.
