Nonprofit Insurance in Massachusetts

What organizations in Massachusetts need nonprofit liability insurance?

Most nonprofits in Massachusetts should consider nonprofit liability insurance, as almost all face at least some liability risk. Organizations that have notable assets may want property coverage too.

These policies are often purchased by nonprofits such as the following:

• Religious organizations (churches, temples, mosques, synagogues, etc.)
• Educational programs (summer camps, preschools, after-school programs, etc.)
• Cultural centers (theaters, museums, Native American organizations, etc.)
• Advocacy groups (social justice advocates, environmental advocates, etc.)
• Land conservation groups (land management nonprofits, land trusts, etc.)
• Other charitable organizations (housing organizations, animal shelters, food pantries, etc.)

While all of these organizations may get a policy providing nonprofit liability insurance, and potentially other protections, not every policy is suitable for every nonprofit. An insurance agent who specializes in helping nonprofits can make sure an organization finds a policy that has the right coverages for them.

What insurance protections should nonprofit organizations look for?

Depending on their specific situations, nonprofits may need a combination of nonprofit liability protections and nonprofit property insurance protections. 

Nonprofit liability coverages normally insure against situations where an organization could be held responsible for harm to another party. There are several nonprofit liability protections that organizations might consider:

• General Liability Coverage: Typically covers common accidents, like slip-and-fall incidents, resulting in third-party injury or property damage, and often includes coverage for defamation lawsuits.
• Professional Liability Coverage: Typically covers work-related errors when giving advice or executing a professional skill, usually extending to employees and volunteers providing advice or services.
• Directors & Officers Liability Coverage: Typically covers claims against a nonprofit organization’s leaders, usually including chairpersons and board members, regarding their decisions or actions.
• Employment Practices Liability Coverage: Typically covers discrimination claims by employees or volunteers, as well as other lawsuits alleging unlawful employment practices.
• Cyber Liability Coverage: Typically covers online risks, usually including data breaches, hacking attempts and ransomware attacks.
• Social Engineering Fraud Coverage: Typically covers incidents arising from deceptive or fraudulent misrepresentation.
• Special Events Coverage: Typically covers specific events hosted by a nonprofit organization, usually providing specific nonprofit liability insurance protection for the event’s duration.
• Umbrella Coverage: Typically serves as an additional layer of liability protection, supplementing other nonprofit liability insurance coverages in the event of a major lawsuit.

Nonprofit property insurance protections normally safeguard various assets against loss and damage. Depending on what a nonprofit owns, there are several property coverages that may be needed:

• Commercial Building Coverage: Normally for buildings and other facilities owned by a nonprofit organization.
• Tenants Betterment Coverage: Normally for improvements and upgrades made to spaces leased by a nonprofit.
• Commercial Contents Coverage: Normally for non-structural items kept at a nonprofit’s location, potentially covering HVAC systems, appliances, specialized equipment, supplies, products and more.
• Inland Marine Coverage: Normally for items like equipment, supplies and products when they are transported between locations.
• Commercial Auto Coverage: Normally for vehicles that a nonprofit owns, usually offering liability coverage for accidents and property coverages for damage.

When do nonprofit organizations need to get liquor liability coverage?

Liquor liability coverage might be needed if serving alcohol during an event, such as a networking event, social gathering, party or fundraiser. Liquor liability is usually also needed if serving alcohol more often, but not many nonprofits regularly serve adult beverages.

Where can Massachusetts nonprofits find nonprofit insurance?

If your Massachusetts nonprofit organization needs help with insurance, contact the independent insurance agents at PIKE Insurance. Our agents can help you find a nonprofit insurance policy that will meet your organization’s coverage needs well.