Best Nonprofit Insurance

Nonprofits Insurance Alliance specializes in coverage for your insurance needs

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Even though nonprofit organizations can often find insurance coverage through traditional business insurance providers, not all business policies can accommodate the unique needs of nonprofits. The best nonprofit insurance will take into account the type of organization you run; your budget; the needs of your officers, staff, and volunteers; and the coverage required to protect your assets and property. 

We’ve identified some of the most common nonprofit coverage options as well as providers that have a proven track record in quality coverage and experience working with nonprofits.

Best Nonprofit Insurance of 2021

Best Overall : Nonprofits Insurance Alliance


Nonprofits Insurance Alliance

Nonprofits Insurance Alliance

Why We Chose It

We chose Nonprofits Insurance Alliance (NIA) as the best overall nonprofit insurance provider because of their specialized nonprofit policies, strong customer retention, and abundance of member-specific resources.

Pros & Cons
Pros
  • Variety of policy options

  • High customer retention

  • Additional membership benefits

Cons
  • Not available in all states

  • No online quote

  • Quotes process can take up to five days

Overview

The Nonprofits Insurance Alliance works exclusively with nonprofit organizations, and their team of specialists can help you secure the best policy based on your organizational and industry needs. This experience, when paired with their policy options and resources, make NIA the best overall nonprofit insurance provider. 

NIA services over 21,000 nonprofits annually, and 94% of NIA members renew their policies each year. Their portfolio of AM Best A-rated providers includes general liability, directors and officers (D&O) liability, flat rate D&O, employee benefits liability, business owners policies, and business auto liability. NIA also offers companion programs, including auto physical damage, employee/volunteer dishonesty, and participant/volunteer accident. 

In addition to insurance policies, NIA also provides members with additional resources and tools, including a free risk management service and loss control consultations. These resources help businesses minimize liability risks by providing training, education, and other types of support. 

To get a quote, submit a request online, and NIA will match your organization with an experienced agent who will help you determine the best policy options for your group. This process can take up to five days.

Best for Directors and Officers Liability : Affinity Nonprofits


Affinity Nonprofits

 Affinity Nonprofits

Why We Chose It

Affinity Nonprofits specializes in various types of insurance policies designed to protect nonprofit organizations, but their unique approach to highly customized directors and officers liability concerns makes them our top choice for D&O liability coverage.

Pros & Cons
Pros
  • Individually crafted policies

  • Multiple industries/organization types covered

  • Covers current and former staff directors, officers, staff members, and volunteers

Cons
  • No online quote

  • No online chat

  • Limited hours of operation

Overview

Affinity Nonprofits, in conjunction with Arch Insurance Company, has insured over 65,000 nonprofit organizations. We chose them as the best D&O liability provider because of their dedication to creating tailored D&O liability insurance policies that reflect the needs of an organization based on industry classification, size, and budget. 

Affinity Nonprofits has an AM Best A++ rating and offers coverage to nonprofit classes, including social services, trade and professional associations, community associations, foundations, museums, aging service facilities, clubs, educational organizations, health care services, aquariums, chambers of commerce, festivals, animal humane societies, and rotary clubs.

A typical directors and officers liability insurance policy includes duty-to-defend, cyber liability, workplace violence, crisis management, breach of contract, personal injury, publishing liability, and punitive damages protection. Limits vary based on each policy with excess limits between $1 million and $10 million available. 

Affinity Nonprofits does not offer an online quote option. Instead, interested organizations must set up a consultation or contact them directly via phone or email Monday to Friday between 8:30 a.m. and 5:30 p.m. EST.

Best General Liability : The Hartford


The Hartford

The Hartford

Why We Chose It

We chose The Hartford as the best provider for general liability insurance because of strong customer reviews, a history of success, and added coverage options.

Pros & Cons
Pros
  • 24/7 customer service

  • Extended coverage options

  • Named one of the “World’s Most Ethical Companies”

Cons
  • Online quotes not always available

  • Not available in Hawaii or Alaska

Overview

The Hartford was founded in 1910 and has served over one million small businesses to date. They’ve been listed as one of the “World’s Most Ethical Companies” 12 times and strive to incorporate sustainability practices, trust, and integrity in each policy they provide. Their general liability insurance policy offers high coverage limits and comprehensive protection, making The Hartford our choice for best for general liability. 

The Hartford’s general liability insurance policy covers nonprofit organizations in the event of bodily injury, third-party property damage, advertising injury, copyright infringement, and reputational harm. Their average general liability policy offers $1 million in coverage per occurrence and $2 million in aggregate; however, limits can extend to $5 million, if required.

The Hartford, rated A+ by AM Best, also provides several other coverage options, including property coverage, D&O, employment practices liability coverage (EPL), fiduciary coverage, and cyber liability coverage. Nonprofits can also obtain workers' compensation insurance, commercial auto coverage, and multinational coverage.  

The Hartford's customer-focused approach to insurance, tailored policies, and overall reliability has earned them a 4.8 out of five-star rating among policyholders. It offers comprehensive customer support, which includes 24/7 customer service via chat, phone, and email. You can get a quote online, though some need to finish the process with an agent.

Best Value : CoverWallet


CoverWallet

CoverWallet

Why We Chose It

CoverWallet’s flexible plans and customizable policies make it easy for nonprofits to secure coverage that fits their needs as well as their budget. That makes CoverWallet our choice for the provider with the best value.

Pros & Cons
Pros
  • Customizable plans

  • Easy online policy management

  • Fast online quotes

Cons
  • Limited time in business

  • Instant quotes not always available

Overview

CoverWallet, founded in 2016, leverages the risk management experience of its parent company, Aon, to create affordable policies that are easy to customize and bundle. Its efficient, online approach to nonprofit insurance removes excess costs, making CoverWallet the best value on the market. 

CoverWallet customers can secure general liability insurance for as little as $39 a month through the BASIC plan, or they can choose to extend coverage by selecting one of the other three policy plan options. The STANDARD insurance plan starts at $149 a month and includes general liability and directors and officers insurance. The PRO plan starts at $209 a month and includes general liability, D&O, and commercial property insurance. Nonprofits that need a more tailored plan can also customize their coverage to include additional policies, like commercial property and hired & non-owned auto liability.

Get a customized insurance quote online in as little as five minutes. CoverWallet also offers an online insurance assessment that can help you select the best coverage for your needs. You can contact a CoverWallet agent via phone, email, or through the online chat feature.

Best for Workers’ Compensation : AMTrust


AmTrust Financial

AmTrust Financial

Why We Chose It

AMTrust is well versed in both nonprofit insurance and workers' compensation laws and requirements from state to state, making them our choice for the best workers’ compensation provider.

Pros & Cons
Pros
  • Experience with nonprofit needs

  • Easy-to-use online portal

  • Coverage for common classes and industries

Cons
  • Newer company

  • No online quotes

Overview

Established in 1998, AMTrust has a history of helping small businesses, including nonprofit organizations, secure the insurance they need to minimize risk. It offers all common commercial insurance policies, including workers' compensation. We chose AMTrust as the best workers' compensation policy provider because coverage is designed to account for policy management, adherence to laws, and volunteer considerations. 

AMTrust also prides themselves on their ability to navigate the often overlooked nuances that nonprofits face when securing this type of solution. Specifically, AMTrust makes it a point to identify potential “gray” areas, such as how state rules apply to volunteers or organizational changes that may leave employees and employers vulnerable under their existing workers' comp policies. This attention to detail makes AMTrust uniquely suited to not only underwrite workers' compensation policies but to offer valuable insights that can influence guidance on a case-by-case basis. 

Because workers' compensation policy pricing depends on so many factors, AmTrust does not offer online quotes. Instead, you can submit an online contact form or contact them via phone or email to work with an agent who can give you the most accurate quote for your organizational needs.

Best for Property Insurance : GuideOne


GuideOne

GuideOne

Why We Chose It

GuideOne's property insurance coverage combines all the fundamentals of property coverage as well as some unique add-ons. They also offer three plans to choose from, which makes it easy to find one that fits your budget, earning them the best property insurance title.

Pros & Cons
Pros
  • Specialize in nonprofits

  • Unique coverage options

  • 24/7/365 customer service by phone

Cons
  • Limited online functionality

  • No online quotes

  • Fewer policies than other providers

Overview

GuideOne has been guiding community organizations through the intricacies of insurance since 1947. They work specifically with churches, nonprofits, educational organizations, and small businesses to offer peril protection, including property coverage. We chose GuideOne's property policies because they are flexible in protecting the organization's physical location as well as additional assets like the administrator's personal property, signage, and even work-related travel property losses.

GuideOne, which has an A- (Excellent) AM Best rating, lets you choose from Basic, Broad, and Special Policies. Coverage can include the physical location (up to $1 million), personal property ($25,000), valuable papers and records ($250,000), indirect losses ($300,000), and even equipment breakdowns (up to $50,000). Policyholders can also tailor their policy with coverage options, including protection against computer fraud or a policy that makes it possible to use energy-efficient replacements and repairs when the insured property is damaged. 

The quote process starts online, but you’ll need to speak to an agent to complete it. GuideOne does offer some online support via email with some claims like workers' compensation managed online, but GuideOne’s online options are limited. The absence of online support may not be ideal for organizational leaders who prefer to manage all their insurance needs online.

Best for Event Insurance : Eventsured


Eventsured

Eventsured

Why We Chose It

Eventsured provides quick and easy event policies for a number of event types, including charity galas, art exhibits, and other common fundraising events. Their $0 deductible policies can be purchased online in minutes, making them our choice for the best event insurance provider.

Pros & Cons
Pros
  • Purchase online in minutes

  • No deductible

  • Make changes up to 24 hours before event

  • Built-in liquor liability

Cons
  • No annual coverage

  • Several events/event features excluded

  • No overnight events

Overview

If your nonprofit doesn’t regularly host or participate in events, an annual policy may not be the most affordable option. Eventsured offers event liability and event cancellation insurance for the duration of individual events. Customers can quickly get a quote, purchase, and receive proof of insurance in as little as one day. This makes Eventsured a good option for nonprofits that may need additional coverage for an event but don't want to add an annual policy to their budget. 

Eventsured will cover over 100 single- or multi-day (excluding overnight stays) events, including fundraising events, sports tournaments, auctions, art exhibits, and even bake sales. And though coverage may vary based on the event, a policy typically offers up to $3 million in coverage for a single event, $10,000 in medical payment coverage, and a $1 million limit for property damage claims. Policies also automatically include liquor liability. 

Though quotes and immediate policy purchases are often available online, some applicants will need to speak with an agent before getting a quote or purchasing coverage. That is particularly true for any events with increased risk, which is the case for those featuring bounce houses, live animals, overnight activities, firearms, cannabis, or any open flame.

Final Verdict

Though many insurance providers offer plans that can accommodate nonprofit organizations, few offer the specialized attention that many nonprofit organizations need when selecting coverage.

Some organizations, like the Nonprofits Insurance Alliance and GuideOne, have an extensive policy portfolio that only caters to nonprofits and similar organizations. Other providers, like AMTrust, The Hartford, and CoverWallet service businesses of all sizes but also have agents who are well versed in nonprofit needs.

Either way, before you choose, the best thing you can do is contact the provider directly to inquire about their experience with not only nonprofits but also the industry in which your organization is classified.

Compare the Best Nonprofit Insurance

Company Policy Options AM Best Rating Maximum Policy Limits Customer Service Options
Nonprofits Insurance Alliance
Best Overall
General Liability, Directors and Officers Liability, Improper Sexual Conduct and Physical Abuse Liability, Social Services Professional Liability, Employee Benefits Liability, Business Auto Liability, Non-Owned/Hired Auto Liability, Umbrella Liability, Liquor Liability, Auto Physical Damage, Business Owners Policy, Inland Marine, Employee/Volunteer Dishonesty Works exclusively with A-rated or better providers Varies by policy Phone, email
Affinity Nonprofits
Best for Directors and Officers Liability 
Directors and Officers, Property and Casualty, Event Cancellation, Volunteer Accident Program  A++  Excess limits up to $1 million to $10 million depending on policy type  Phone, email, online contact form 
The Hartford
Best General Liability 
General Liability, Management Liability, Cyber Liability, Workers’ Compensation Insurance, Commercial Auto Coverage, Property Coverage, Multinational Coverage  A+  Up to $5 million  Phone 
CoverWallet
Best Value 
General Liability, Workers' Compensation, Business Owners Policy, Commercial Property, Professional Liability, Commercial Auto, Umbrella Insurance, Errors & Omissions, Directors and Officers, Employment Practices Liability Insurance (EPLI), Fiduciary Liability, Cyber Liability, Inland Marine, Product Liability, Special Events, Liquor Liability, Medical Malpractice, Ocean Marine, Health Insurance, Hired and Non-Owned Auto, Business Interruption, Equipment Breakdown, Garage Liability, Disability Insurance, Pollution Liability, Crime, Employee Benefits Liability  Varies by policy  Online chat, phone, online contact form 
AMTrust
Best for Workers’ Compensation 
Workers' Compensation, Business Owners Policy (BOP),  Employment Practices Liability Insurance (EPLI), Commercial Packages  A-  Varies  Online chat, phone, online contact form 
GuideOne
Best for Property Insurance
General Liability, Commercial Property, Workers' Compensation  A-  Up to $1 million  Phone 
Eventsured
Best for Event Insurance 
Event Liability, Event Cancellation  Works exclusively with A++ providers  Up to $3 million  Phone, email, online contact form 

What to Look for in Nonprofit Insurance

The following questions can help you narrow down your options and choose the best nonprofit insurance provider and policy for your organization: 

  • Does the provider have experience working with nonprofits?
  • What does your existing policy, if any, already cover? What gaps exist?
  • Does your current or potential provider offer policy bundling options?
  • Is the policy designed to meet your specific industry needs? 
  • Can the policy be adapted to manage changes in organizational structure and size?
  • Who and what is covered, e.g., does the policy cover all volunteers? Is property covered in transit? 
  • What do existing or past customers have to say about their experience (e.g., customer reviews)? 

Frequently Asked Questions (FAQs)

What Types of Insurance Does a Nonprofit Need?

Insurance needs can vary based on organizational size, location, and industry, but nonprofits are wise to consider the following types of coverage:

  • General Liability Insurance: General liability insurance protects your nonprofit against common risks or negligent acts that may result in injury, some instances of property damage, or advertising injury. 
  • Property Insurance: Property insurance offers coverage for the space your organization occupies as well as some of the property inside it, including fixtures, office furniture, equipment, computers, etc. It protects property in the event it's lost or damaged due to fires, storms, vandalism, theft, etc. 
  • Director and Officer Insurance (D&O) Insurance: D&O insurance offers protection for members of your board, officers, and in some cases other volunteers and staff who may be named in a lawsuit against your organization. 
  • Auto Insurance: If employees or volunteers operate a vehicle, auto insurance provides liability coverage. In addition, some states require that organizations also carry insurance that includes personal injury or underinsured motorist coverage.
  • Workers’ Compensation: Workers’ compensation covers the medical bills and lost wages associated with workplace injuries. 
  • Event Insurance: If you plan on hosting an event, event insurance can offer protection against injury and property damage that takes place during the event. It can also protect you against event cancelations.
  • Cyber Liability: If your organization maintains a database of donors, members, or customer data, cyber liability coverage can offer protection in the event of a data breach. 

How Much Does Nonprofit Insurance Cost?

The cost of nonprofit insurance can vary based on the size and type of organization to be insured as well as the type of policy you choose. General liability insurance, for example, may cost around $500 a year, while workers’ compensation insurance can vary drastically based on how many employees you have and the risks associated with their role. 

Who Is Liable at a Nonprofit?

Typically, if your nonprofit is not incorporated, those associated with it can be liable in any claims against the organization. Conversely, much like a small business, if your nonprofit organization is incorporated, board members, officers, employees, and members typically are protected from liabilities (and debts) associated with the organization. There are, however, some exceptions. 

Directors, officers, members, and even volunteers can be liable if they directly injure someone, intentionally commit a fraudulent activity that results in damages (financial, property, etc.), personally guarantee debt that moves into default status, mismanaged funds, or organization tax liabilities. 

Methodology

When reviewing nonprofit insurance policies, we first looked for organizations that specialized in coverage for nonprofit groups and organizations. Then we reviewed their coverage options, industries served, customer reviews, and, when available, premiums and limits. We also considered the amount of time a provider was in business as well as their AM Best rating to ensure the providers chosen had a history of providing quality service and reliable coverage.

Article Sources

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  1. Insureon. "Nonprofit Business Insurance Costs." Accessed May 17, 2021.