Non-profits engage in a diverse range of activities to further their cause. This could include raising funds, organizing events and investing in research. Through these activities, Board members, officers, employees and volunteers all get exposed to some level of risk. A comprehensive non-profit insurance strategy will help protect all the parties involved, in Canada or abroad.
There are many types of insurance policies available for non-profits, each covering a different set of risks. This article lays out the major types of non-profit insurance policies available. Future articles will dive deeper into each type of policy to provide a holistic review of options.
The major types of insurance policies include:
- Commercial General Liability insurance (CGL). This is the broadest form of coverage, and is often the first policy purchased. If insurance was a birthday party, a CGL policy would be the cake. This policy typically covers things such as
- Injuries to members, suppliers or visitors that happen at your office
- Injuries that happen off-site by your volunteers or employees
- Damage to someone else’s property caused by an employee or volunteer in the course of doing the non-profit’s activities
- Injury caused by libel or slander (i.e., reputational “injury”)
- Directors & Officers insurance. Provides financial protection for Directors and Officers against claims alleging wrongful management acts while performing duties related to running the non-profit.
- Reporting issues, or inaccurate disclosure (e.g., in financial statements)
- Financial misconduct (e.g., inappropriate use of funds)
- Failure to adhere to local laws and/or regulations
- Employment Practices insurance. Provides protection for employment related acts, such as wrongful dismissal or workplace harassment. Non-profits with a meaningful number of employees should consider this insurance policy. This policy typically covers things such as
- Wrongful termination
- Discrimination or harassment
- Professional Liability insurance. Provides protection for claims arising from acts of professional negligence. If your non-profit provides counselling, advice and professional services, you should consider this policy. This policy typically covers things such as
- Giving advice that results in an injury or loss to a member
- Missing an agreed upon deadline for a given event or project
- Commercial Property insurance. Protects your organizations office, land and contents from damage, loss or theft. If you own or rent property, consider this policy. This policy typically covers things such as
- Fire or water damage at the office
- Theft of goods
- Damage to a rented office space
- Special events insurance. Covers risks arising from special events like fundraisers, concerts and parties. These types of events are often excluded from other policies. This policy typically covers things such as
- Someone slipping and injuring themselves at the event
- Damage to the event hall
As a non-profit leader, you should evaluate your needs and determine which policies are right for you. As you evolve and grow, your insurance needs will change, it is best to work with a broker that can proactively manage your needs.
Zensurance is Canada’s leading online commercial insurance broker. We offer a full range of insurance products to small businesses, with a particular focus on digitizing businesses and technology startups. We understand what it is to work with new technology, and know the most common risks of which you should be aware. Based on that (and a lot of analytics), we recommend the ideal insurance coverage for your business.