Nonprofit Insurance in Pennsylvania

Also providing nonprofit insurance to residents in Maryland, North Carolina, New Jersey, and Virginia.

Anthony Acri Insurance

What is nonprofit insurance?

Nonprofit insurance is a type of commercial coverage designed specifically to meet the unique needs of nonprofit organizations. It helps protect these organizations from risks and liabilities that could arise from their operations, such as property damage, liability claims, and employee-related issues. Nonprofit organizations in Pennsylvania, just like any business, face potential risks that could impact their ability to serve the community. Whether it’s a lawsuit, an accident, or damage to property, nonprofit insurance ensures that the organization has the financial resources to recover and continue its mission. It’s essential for safeguarding assets, protecting board members and employees, and maintaining the organization’s stability in challenging situations.

What does nonprofit insurance cover in Pennsylvania?

Nonprofit insurance provides essential coverage to protect nonprofit organizations from various risks and liabilities associated with their operations. Key coverages typically include:

1. General Liability Insurance: This protects against claims for bodily injury, property damage, and personal injury that may occur during nonprofit activities or events. For example, if a participant is injured at a fundraising event, this coverage can help cover medical expenses and legal fees.
2. Professional Liability Insurance: Also known as errors and omissions insurance, this coverage protects against claims of negligence or inadequate performance of professional services provided by the nonprofit.
3. Property Insurance: This covers damage to the nonprofit’s physical assets, including buildings, equipment, and supplies, due to events like fire, theft, or natural disasters.
4. Workers’ Compensation Insurance: Required in most states, this coverage provides benefits to employees who are injured or become ill due to their work, covering medical expenses and lost wages.
5. Event Insurance: If the nonprofit hosts events, this coverage protects against liabilities related to those events, such as accidents or injuries that occur during the event.

Overall, nonprofit insurance is vital for safeguarding the organization’s mission, protecting its assets, and ensuring that it can continue to serve its community effectively.

Does nonprofit insurance cover events and activities outside of the organization’s main operations?

Yes, nonprofit insurance can cover events and activities outside of the organization’s main operations, depending on the specific terms of the policy. Many general liability insurance policies for nonprofits extend coverage to events such as fundraisers and community outreach programs, protecting against claims related to bodily injury, property damage, or personal injury that may occur during these events. Additionally, nonprofits can purchase event-specific insurance for one-time activities, like galas or festivals, which addresses unique risks associated with those events. Coverage often includes protection for volunteers and participants involved in activities beyond the usual scope of operations. However, it’s crucial for nonprofits to review their policies for any exclusions or restrictions and to notify their insurer about special events to ensure comprehensive coverage.

Can nonprofits obtain insurance for board members against personal liability?

Yes, nonprofits may obtain Directors and Officers (D&O) insurance to protect board members from personal liability. D&O insurance safeguards individuals who serve in leadership positions from legal actions taken against them for decisions they make while acting on behalf of the nonprofit. This insurance covers legal defense costs, settlements, and judgments, offering protection in cases involving accusations of mismanagement, negligence, or wrongful acts.

How does nonprofit insurance address risks associated with social media and online fundraising?

Nonprofit insurance can address risks associated with social media and online fundraising primarily through specific policy provisions and endorsements. Many general liability insurance policies now include coverage for claims arising from online activities, such as defamation, copyright infringement, or invasion of privacy, which can occur through social media interactions or digital content shared during fundraising campaigns. 

Additionally, cyber liability insurance is increasingly vital for nonprofits engaging in online fundraising, as it provides coverage for data breaches, hacking incidents, and the loss of sensitive donor information. This type of insurance can help mitigate the financial impact of such events and cover legal fees associated with defending against claims. Nonprofits should also implement risk management practices, such as developing social media policies and ensuring compliance with online fundraising regulations, to further protect themselves from potential liabilities in the digital space.

What factors influence the cost of nonprofit insurance premiums?

Several factors influence the cost of nonprofit insurance in Pennsylvania, including:

1. Size and Scope of Operations: The size of the nonprofit, including the number of employees, volunteers, and annual revenue, affects premiums. Larger organizations with broader activities may face higher risks and, consequently, higher insurance costs.
2. Location: The geographical location of the nonprofit can influence premiums due to regional risks, such as natural disasters or crime rates. Urban areas may have higher premiums compared to rural locations.
3. Claims History: A nonprofit’s past claims history plays a crucial role in determining premiums. Organizations with a history of frequent or severe claims may face higher rates due to perceived increased risk.
4. Industry and Activities: The specific sector in which the nonprofit operates can impact premiums. For example, nonprofits involved in high-risk activities (e.g., youth programs, animal welfare) may incur higher insurance costs due to increased exposure to potential claims.
5. Deductibles and Coverage Limits: The chosen deductibles and coverage limits also influence premiums. Higher deductibles generally lead to lower premiums, while lower deductibles and higher limits increase costs.

How can not-for-profits obtain nonprofit insurance in Pennsylvania? 

Reach out to the independent agents at Anthony Acri Insurance Agency for a fast quote on nonprofit insurance in Pennsylvania. Our team understands the unique risks faced by nonprofit organizations and can help you find comprehensive coverage tailored to your needs. Contact us today to discuss your options and secure the insurance solutions that will safeguard your organization’s mission and operations for years to come.