Nonprofit insurance is a collection of business insurance policies that are designed to legally and financially protect not-for-profit organizations in the event of a lawsuit. Some common types of insurance for nonprofits include general liability insurance, commercial auto insurance, and professional liability insurance.
The best nonprofit insurance companies offer reliable coverage, good customer support, strong financial ratings, and helpful online tools and resources. Additionally, the best providers sell multiple types of nonprofit business insurance, which makes it easy to bundle all of the policies you need.
Best Nonprofit Insurance of 2021
Best Overall : Nonprofits Insurance Alliance
Nonprofit Insurance Alliance has been insuring nonprofits exclusively for more than 30 years. The company offers over a dozen policies eligible for dividend payouts and lets members take advantage of a variety of additional perks.
Many policies available including supplemental coverage
Policyholders can receive dividends
Free perks and paid programs
Only available in 32 states
No option to get a quote online
Quote process can take a while
Nonprofits Insurance Alliance has been in business for more than 30 years. The company insures most 501(c)(3) federally tax-exempt nonprofits in a variety of industries, including animal rescue organizations, daycares, children’s programs, group homes, senior organizations, counseling centers, homeless service organizations, environmental programs, drug and alcohol recovery centers, art programs, food banks, community groups, and foster family agencies.
Overall, Nonprofits Insurance Alliance is a reliable insurance company. AM Best gives it an A rating for financial strength which signifies that the company is able to repay policyholders in full after a covered claim without any issues.
Nonprofits Insurance Alliance offers 18 different nonprofit insurance policies. In addition to the basics, like general liability insurance and directors and officers (D&O) insurance, you can also get more unique policies, including volunteer accident insurance.
Nonprofits Insurance Alliance customers can also access safety training, volunteer management programs, and webinars, as well as employee screening services, emergency communication platforms, driver telematics tracking, and more.
To get a quote from Nonprofits Insurance Alliance, you will need to submit a request online. Premiums, coverage limits, and deductibles depend on the type of coverage you need, and the state that your organization operates in. According to the website, it can take up to five days to receive a quote, but once you’re approved, coverage starts almost immediately.
Best for General Liability Insurance : The Hartford
- Policy Types: 7
- Industries Covered: 22 listed
- Coverage Limit: $2 million per occurrence ($4 million aggregate)
The Hartford is a leading business insurance provider that lets nonprofits purchase general liability insurance with a high coverage limit and build a fully customized policy that meets their unique needs.
Easy to get a quote online
High coverage limits
Option to build a customized policy
Rated below average for customer satisfaction
Nonprofits in high-risk industries may not qualify
The Hartford was founded in 1810 and has more than 210 years of experience insuring individuals and businesses. The company sells nonprofit insurance in most states, but policy availability varies by location. Most nonprofits will be able to get approved for coverage through The Hartford, unless you work in a potentially high-risk industry, like manufacturing.
In terms of reliability, The Hartford has an A rating from AM Best, which shows it has excellent financial strength and stability. However, the company was rated below average for overall customer satisfaction in J.D. Power’s 2020 U.S. Small Commercial Insurance Study.
Hartford offers robust general liability insurance, which provides legal and financial protection in the event of a property damage lawsuit, bodily injury lawsuit, or an advertising injury lawsuit, like copyright infringement or libel. This type of coverage will pay for your nonprofit’s legal fees, as well as third-party medical bills and property damage costs.
For a general liability policy, per occurrence/aggregate coverage is available up to $2 million/$4 million. To give you a sense of Hartford’s rates, we got a sample general liability insurance quote for an education nonprofit in Boston with five employees and $1 million/$2 million in coverage. The annual premium came out to $536 per year.
The Hartford' website has lots of information about the insurance policies available, what they cover, who needs them, how much they cost, and examples of common claims. If you’re not sure what type of insurance your nonprofit needs, you’ll likely find some guidance by clicking around on their site.
Getting a quote for general liability insurance is quick and easy. You can start the online quote process online by answering some basic questions about your nonprofit. You’ll also have the option to add other business insurance policies that may be beneficial, like hired and non-owned auto insurance.
Read the full Hartford insurance review.
Best for Directors and Officers Insurance : Embroker
Embroker’s directors and officers (D&O) insurance offers affordable protection for your nonprofit's board members and executives. It only takes a few minutes to get a quote, and the company has 24/7 customer support if you have questions.
Affordable policies for nonprofits on a budget
Option to get an instant quote online
Policy packages let you apply for multiple policies at once
Coverage is available nationwide
You may have to pay your annual premium in full
Newer company with few customer reviews
Embroker was founded in 2015 and was the first digital insurance company to hit the market. The company specializes in insurance for technology startups, but nonprofits in many industries can also qualify for coverage.
Since Embroker is a relatively new insurance company, it doesn’t have many online ratings. However, its underwriting partners, Clear Blue and MunichRe, are financially strong, which is a good indicator of reliability. Clear Blue has an A- rating from AM Best, and MunichRe has an A+ rating from AM Best.
Embroker’s D&O insurance policy legally protects your nonprofit’s executives and board members if their guidance or business recommendations cause financial harm to a third party. Specifically, it covers their lawyer fees, court costs, and a settlement with the claimant. D&O insurance from Embroker covers all past, present, and future directors and officers, without specifically naming them.
You can purchase a D&O insurance policy with coverage between $1 million and $5 million. The following quote for a grant provider nonprofit in Boston with five employees offered a policy with $1 million in coverage and $10,000 in retention for $6,000 per year. Keep in mind that for D&O insurance, your quote will be largely dependent on your company’s financial statements, including the value of your assets, your debt to income ratio, and your total liability.
Embroker offers 23 different business insurance policies and it’s easy to apply for multiple policies at once time using the online quote generator. If you prefer to work with an agent to get your quote, you can reach the company via phone, email, or using the live chat feature.
You can get a quote online through Embroker’s website and purchase coverage directly through the platform in less than 10 minutes. But keep in mind that you will likely need to pay your annual premium in full. If you prefer to pay in monthly installments, you’ll need to set up a separate payment through First Insurance Funding.
Best for Professional Liability Insurance : Church Mutual
Nonprofit organizations in nearly any industry can purchase a professional liability insurance policy from Church Mutual, which offers valuable protection in the event of a negligence lawsuit. Customers can also take advantage of discounted risk prevention services to keep their workers safe.
Specializes in insurance for nonprofits and charitable organizations
Covers a wide range of industries
Risk prevention and safety service discounts available
Can’t get a quote online
Website offers limited information about policies
Church Mutual was founded in 1897. As the name suggests, the company primarily serves religious organizations, but it also sells insurance to nonprofits, schools, senior living communities, childcare centers, and more. Church Mutual insurance is available in all 50 states.
Although Church Mutual is a lesser-known insurance company, its ratings indicate good financial strength and reliability. It has an A rating from AM Best, which proves that the company has enough money to repay policyholders in full after any covered losses.
Church Mutual is our top pick for the best professional liability insurance. This policy is designed to protect your nonprofit from lawsuits related to negligence, unsatisfactory work, missed deadlines, and budget overruns that cause financial harm to a client or customer.
Because Church Mutual caters to nonprofits and charitable organizations, it understands the unique risks that these businesses face. Additionally, policyholders get access to guides, videos, and webinars designed to help keep their workplace safe and avoid lawsuits. Unfortunately, Church Mutual doesn’t have an online quote tool and it also doesn’t include any information online about policy limits for professional liability insurance.
Church Mutual also offers a variety of discounts for safety services and equipment from a network of partner providers. These include discounted background check services, discounted employee onboarding software, and even free telehealth services if one of your employees gets injured at work.
In order to get a quote, you’ll need to submit a form online. You also have the option to call the company or find the direct agent who serves your state using the search form on the website. Church Mutual doesn’t mention how long it takes to get coverage, but because you have to work with an agent, it could take several days.
Best for Commercial Auto Insurance : Progressive
Progressive offers the best commercial auto insurance for nonprofits. Most vehicles qualify for coverage, and you can save up to 15% on your policy if you hold a general liability insurance or business owner’s policy from any insurance provider.
Commercial insurance claims specialists
Most business vehicles qualify for coverage
Easy to get a quote online
Variety of discounts available
No coverage in Washington D.C.
Discounts not available in all states
Progressive was founded in 1937. It’s the biggest commercial auto insurance provider in the country, insuring more than one million vehicles in all 50 states. (Note that coverage is not available in Washington D.C. as of May 2021.)
Most nonprofits will qualify for Progressive commercial auto insurance. Covered vehicles include passenger sedans and SUVs, minivans, passenger vans, cargo vans, busses, trucks, and trailers. The company has an A+ rating from AM Best, indicating excellent financial strength. However, Progressive was rated below average for purchase satisfaction in J.D. Power’s 2020 U.S. Insurance Shopping Study.
A commercial auto insurance policy from Progressive covers your business-owned vehicles, specifically driver’s liability and property damage if an employee causes an accident. Progressive also sells collision insurance, comprehensive insurance, medical payments coverage, uninsured motorist coverage, hired and non-owned auto insurance, an individual named insured endorsement, and other options.
To give you a sense of price, we got a sample quote for a 2015 Honda Odyssey driven in Massachusetts. A full-coverage policy with 20/40/5 personal liability and uninsured motorist liability coverage and a $500 deductible for collision and comprehensive insurance came to $1,880 per year. The highest coverage limit available is a $2 million combined single limit.
Not only does Progressive offer comprehensive commercial auto insurance, but customers can take advantage of 24/7 customer support, adjustable coverage limits, special commercial claims adjusters, and an unlimited travel radius in most states.
Plus, you can lower your premium by taking advantage of discounts. There are savings for having a business owner’s policy or general liability policy, paying your premium in full, insuring your personal vehicle with Progressive, enrolling in the Snapshot ProView program, and more.
Getting a commercial auto insurance quote from Progressive is easy. You can use the online quote tool or call an agent directly. If you buy insurance online, your coverage will start as soon as you make the first payment.
Best for Property Insurance : Charity First
Charity First offers the best property insurance for nonprofits that operate out of a physical location. Policies come with high coverage limits and the company offers unique coverages for things like employee theft, ordinances, and system breakdown coverage.
Coverage included with basic property insurance
Specializes in nonprofit business insurance
Coverage is available nationwide
Can’t get a quote online
No online claim reporting feature
Limited customer support options
Charity First was founded in 1985 and specializes in insurance for religious organizations, nonprofit businesses, and for-profit commercial companies. On the nonprofit side, Charity First insures organizations like counseling centers, group homes, thrift stores, Boys & Girls Clubs, performing art groups, vocational schools, and YMCAs. Coverage is available in all states.
Charity First’s insurance policies are underwritten by Nova Casualty and The Hanover. Although Charity First does not have many third-party ratings, Nova Casualty has an A rating from AM Best, and The Hanover also has an A rating from AM Best.
Property insurance from Charity First protects the physical structure of your office space, and the items inside in the event of a covered claim, like a fire, flood, theft, vandalism, or natural disaster. It reimburses your losses on a replacement cost basis, which means depreciation is not factored into your payout.
In addition, the property insurance policy from Charity First includes system breakdown and boiler coverage, up to $500,000 in ordinance/law coverage, up to $300,000 in accounts receivable/records coverage, up to $300,000 in business income replacement, up to $100,000 in electronic processing (EDP) coverage, up to $100,000 in sewer/drain backup coverage, up to $50,000 in employee theft coverage, up to $25,000 in money and securities coverage, and more.
Because Charity First doesn’t have an online quote tool, it’s hard to say how much the policies cost. You can request a personalized quote by calling or emailing the company directly.
If you’re in the market for nonprofit insurance, choosing the best nonprofit insurance company can be challenging. Some companies offer comprehensive coverage but don’t specialize in nonprofits.
Based on our research and comparisons, we recommend Nonprofits Insurance Alliance. The company caters exclusively to nonprofits and its agents can help you build a policy that meets your specific needs. There are tons of policies to choose from which can earn you dividends, and you can take advantage of unique programs and services to reduce risk in your organization.
Compare the Best Nonprofit Insurance
|Company||AM Best Rating||Years in Business||States||Policy Types||Coverage Limit|
|Nonprofits Insurance Alliance
Best for General Liability Insurance
|A||211||48||7||$2 million per occurrence/$4 million aggregate|
Best for Directors and Officers Insurance
|Clear Blue (A-), MunichRe (A+)||6||50||23||$5 million|
Best for Professional Liability Insurance
Best for Commercial Auto Insurance
|A+||84||50||14||$2 million combined single limit|
Best for Property Insurance
|Nova Casualty (A), The Hanover (A)||36||50||10||Not disclosed|
How to Choose the Best Nonprofit Insurance Coverage
Every nonprofit has different insurance needs. To choose the right nonprofit insurance coverage for your organization, consider these factors:
- The number of employees your nonprofit has
- The amount of risk your nonprofit faces
- Your total assets at stake in the event of a lawsuit
- The things you value in an insurance company (price, policy options, discounts, etc.)
- Your budget
Frequently Asked Questions
How Much Does Nonprofit Insurance Cost?
The cost of nonprofit insurance is based on a number of different factors. Some policies are more expensive than others, and every insurance company charges a different base rate for coverage. Additionally, the cost of business insurance depends on the size of your nonprofit, the number of employees you have, the amount of risk your company faces, and the amount of coverage you need.
What Type of Insurance Does a Nonprofit Organization Need?
At a minimum, nonprofit organizations should carry general liability insurance and property insurance if you rent, lease, or own a physical office location or storefront. If your employees travel in business vehicles, you should purchase commercial car insurance. If you provide services to clients or customers, professional liability insurance is a must. And because many nonprofits have a board of directors, D&O insurance can also come in handy.
How Are Nonprofit Insurance Policies Different From Other Business Policies?
There is no real difference between nonprofit insurance policies and standard business insurance policies. Most nonprofits are structured like a regular business and operate as such, so they can benefit from the same insurance policies that for-profit businesses have. Additionally, nonprofit businesses face many of the same risks as for-profit businesses, so having insurance can provide valuable protection in the event of a lawsuit.
To find the best nonprofit insurance, we reviewed 10 popular providers based on factors like policy offerings, coverage limits, online tools and resources, and financial strength. We also looked for nonprofit insurance companies that advertised affordable rates. Sample quotes were obtained from carriers that use an online quote generator, but keep in mind that nonprofit insurance premiums are personalized for your organization.