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Get to Know Insurance: Nonprofit Insurance Part One


Thanks for checking out this week’s installment of Get to Know Insurance! Over the last three weeks we’ve discussed insurance for businesses, the different kinds of insurance and policy options that businesses have access to. If you would like to catch up on the information we’ve already shared, you can do so here.

This week we are starting the nonprofit insurance portion of our series. The nonprofit sector is growing incredibly fast, in Idaho alone we have over 12,000 nonprofits! We work with a number of nonprofits both in Idaho and around the inter-mountain west region. Over the last few years we’ve made it our mission to help those who help others by assisting nonprofits through the insurance buying process.

Most of the nonprofits that we work with are in their early stages of operation. They’re still ironing out details, defining their mission statements, searching for funding, finding volunteers and assembling their board of directors. Because they are working so hard to turn their ideas into realities, something like insurance can, often, get lost in the stack of paperwork that needs to be completed. Another issue is that some nonprofits don’t know what kind of insurance they need in their early stages.

That’s where we come in to help. We’ve insured various nonprofits for over 20 years. They range in size, type and the kinds of exposures they face. We’ve used the experiences we’ve had over the last two decades to learn everything we can about nonprofits and the insurance issues they face, the products they need, and which insurance companies are the most nonprofit-friendly. We are thrilled to be using what we’ve learned to help the many organizations we insure.

This week we will be going over two of the common coverages that nonprofits need and next week we will explain how traditional insurance products can help these organizations as well. There are some coverages that every nonprofit needs and others that are only needed for organizations that engage in particular operations.

The first policy we will mention is a Directors and Officers liability policy, referred to as D&O. The vast majority of nonprofits are run by a board of directors that make the important decisions on how the operations not only carry out their work on a day-to-day basis but also develop long term goals and work out how to reach those goals. Because the decisions made by the directors can affect the operation so prominently, coverage is needed in the event that a board makes mistakes, acts improperly or is sued for wrongdoing.

This policy will defend a company and / or board member in court and pay out damages or settlements that result from litigation. On a general liability policy, negligent but unintentional acts are covered whereas D&O is protection for intentional acts like wrongful termination, harassment, discrimination and failure to hire. D&O is a necessary asset for organizations that want to find the best, and most qualified, board members that they can. Without this coverage, professionals would be less likely to join a board because they would be personally liable for losses resulting from the decisions they make.

The next coverage we will cover is Social Service Professional liability coverage. This provides coverage for organizations that employ or have volunteer professionals like nurses, educational professionals, veterinary professionals, adoption service employees, aides, assisted living providers, childcare workers, counselors, daycare providers, instructors, mentors, nurse assistants, psycho-therapists, psychologists, resident home care providers and supervisors, social workers, therapists and tutors.

There is a plethora of nonprofit organizations that offer these kinds of services to people in need, those that don’t have access to the kinds of services that most of us take for granted and people who have no where else to go. These are the kinds of organizations we love working with, that provide a very valuable service to the population that needs it the most.

That wraps up this week's edition of Get to Know Insurance, tune in next week when we go over how traditional business insurance policies can benefit nonprofit organizations!

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