Massachusetts Nonprofit Insurance

There are currently more than 33,000 registered nonprofit organizations in the state of Massachusetts. Collectively, these groups hold nearly $335 billion in assets and generate revenues of about $118.8 billion a year. Nonprofit insurance protects these organizations from large financial losses when disaster strikes so they can focus on providing support and services to those in need.

If you run a nonprofit organization in Massachusetts, a local independent insurance agent can help you obtain the coverage you need at a price you can afford. Talk to an insurance agent near you to learn more.

What Could Go Wrong at a Nonprofit Organization?

Most nonprofit and charitable organizations face potential risks that can lead to large financial losses. Consider how your organization would handle the financial ramifications of the following situations if it were uninsured.

• A fire breaks out in the building where your offices are housed, and thousands of dollars worth of supplies and equipment are destroyed.
• You find out that your organization’s treasurer has embezzled tens of thousands of dollars.
• An employee of your organization is severely injured on the job and needs to be hospitalized.
• A volunteer at your organization loses control of the company van while driving supplies to fundraising event and causes a multi-car collision.

These are just a few examples of times that having nonprofit insurance can prove beneficial.

What Is Nonprofit Insurance?

Nonprofit insurance is a general term used to describe a business owners policy (BOP) or a business insurance policy package that has been customized to meet the specific coverage needs of not-for-profit organizations.

Examples of the kinds of Massachusetts nonprofit organizations that can benefit from this type of insurance include the following.

• Churches
• Parent-teacher associations
• Fundraising organizations
• Community health clinics
• Foundations
• Historic societies
• Arts and cultural groups
• Homeless shelters
• Mental health facilities

A comprehensive nonprofit insurance policy can provide you with peace of mind so you can focus on your group’s valuable objectives.

How Much Does Nonprofit Insurance Cost in Massachusetts?

On average, nonprofit organizations in Massachusetts pay about $800 a year for their insurance coverage. Your group’s costs could be significantly higher or lower than this average rate depending on factors such as the following.

• The type of organization you are insuring
• The size of your nonprofit 
• Your organization's expected annual revenue
• The value of your organization’s assets
• The number of employees and volunteers who do work for your group
• Whether your nonprofit organization owns or uses vehicles
• Whether your nonprofit owns or rents the space in which it operates

The only way to find out how much a policy will cost is by requesting customized quotes from a few competing insurance companies. Independent agents can save you time and money by doing the comparison shopping on your behalf.

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What Does Nonprofit Insurance Cover?

As with any business insurance coverage your nonprofit insurance can provide as much or as little coverage as your organization needs.

A basic business insurance policy will provide the following.

• Commercial property insurance: This can cover your organization’s property if it is lost or damaged due to a covered event like theft, fire, or severe weather.
• General liability insurance: This can cover against many common liability risks such as if someone is injured on your organization’s property or if your group is accused of libel, slander, or copyright infringement.

Depending on what your group does and how it operates, you may also want to include some or all of the following types of coverage in your policy package.

• Workers’ compensation insurance: This can cover the cost of medical treatments and disability pay if an employee of your organization is injured on the job. It is required by the state of Massachusetts if you have at least one employee.
• Directors and officers liability insurance (D&O): This can cover your directors, officers, and individuals on your board of directors if they have a lawsuit brought against them for alleged bad management decisions.
• Employment practices liability insurance: This can cover organization against accusations of illegal employment practices such as discrimination, harassment, or wrongful termination.
• Professional liability insurance: This can cover against lawsuits directed at individuals who provide professional services such as medical treatments or counseling, for your organization.
• Cyber liability insurance: This can cover your liabilities if hackers break into your nonprofit’s computer system and steal sensitive data such as your donors’ names, addresses, and credit card numbers.
• Fidelity bonds: Fidelity bonds can protect your business if an employee or volunteer engages in illegal or dishonest acts, such as if someone working for you embezzles funds or steals from people that your group is helping.

Not every type of policy is right for every type of nonprofit organization, so it may be beneficial to enlist the guidance of an independent insurance agent who is familiar with the many different types of coverage that you can include in your policy package.

How an Independent Insurance Agent Can Help You Find the Best Policy

Let a local independent agent assess your organization’s risks and recommend appropriate policies and options to cover against them. That way, you can focus on your group’s mission instead of on trying to understand the ins and outs of your insurance policy and options.

Independent insurance agents are free to shop around to find you the best and most affordable policies. There are nearly 1,300 independent agents in Massachusetts who are ready to help. Find an insurance agent near you to get started.