Non-Profit Insurance

Insurance for Non-Profit Organizations

When dealing with difficult issues, risk is inevitable. Protect your organization and your assets with Non-Profit Insurance.

Join thousands of Canadian businesses that are already protected!

Partnership with over 50 leading Canadian insurance companies

Zen Man Protected By Non-Profit Insurance

What is Non-Profit Insurance?

Despite good intentions, non-profit organizations and charities are not immune to potential claims or lawsuits related to professional activities and business operations.

Non-Profit Insurance is a policy package specially designed to protect non-profits and charities against claims alleging bodily injury, fiduciary liability, and professional malpractice.

D&O Coverage

What does Non-Profit Insurance cover?

A comprehensive insurance policy package for non-profit organizations and charities will typically include key coverages, such as:

  • Commercial General Liability Insurance protects against common liability risks you may encounter in your day-to-day business operations and special events, such as third-party property damage or bodily injury. CGL provides financial coverage for medical expenses and legal fees related to lawsuits and claims.
  • Professional Liability Insurance provides financial protection against claims alleging negligence, errors, omissions, or failure to deliver a service as promised.
  • Directors & Officers Liability Insurance protects your past, current, and future board members and their assets should they, or other members of the Board, be named in a claim or lawsuit for violations of their fiduciary responsibilities.
  • Abuse Liability Insurance protects your business against claims and lawsuits alleging an act or threat of sexual, physical, or mental harassment, abuse, or misconduct.
  • Cyber Security Insurance covers costs associated with cybercrime involving your technology systems and database.
  • Legal Advice Helpline coverage provides free access to legal advice on a set of common business topics with an experienced lawyer, and the cost to retain a lawyer to deal with a specific set of common issues.
Directors needing D&O

Who needs Non-Profit Insurance?

There are elements of non-profit organizations and charities that make them susceptible to claims and lawsuits. You need non-profit insurance if:

  • You have an office space, or you visit your client’s office space or home.
  • You have staff and volunteers who conduct business off-site.
  • Your work involves collaboration with third-parties, including employees, volunteers, vulnerable persons, and vendors.
  • You host special events.
  • You store important/confidential data.
  • You, your staff, or your volunteers provide advice or offer services.
  • Your business has a board or advisory.

Each organization is unique, and coverage requirements may vary. Please speak with one of our brokers about customizing your policy to suit your specific business needs.

D&O Insurance Costs

What is the cost of Non-Profit Insurance?

We’ve partnered with over fifty of the biggest insurance companies in Canada to offer you the most exclusive rates on your Non-profit Organization Insurance policy package.

A Commercial General Liability (CGL) policy for a small organization with a $2M limit will cost approximately $450. The cost of your policy will vary depending on several factors, such as:

  • Training and Experience
  • Company Size and Location
  • Annual and Projected Revenue
  • Services Provided
  • Number of Employees

Getting insured is quick and easy!

Complete our 5-minute online application form for a free Non-Profit Insurance quote.

Common scenarios where Non-Profit Insurance is useful

non-profit-insurance-commercial-general-liabilty

Problem: Your non-profit hosts an annual sporting event for children, and during one of the activities, a participant falls and knocks out two teeth.

Outcome: The child’s family sues your organization for bodily injury. Your Commercial General Liability Insurance covers the legal fees and medical expenses, totaling $18,000.

non-profit-insurance-charity

Problem: Your organization offers a hotline for at-risk teens. After a session, a teen commits a crime and claims your volunteer psychologist told them to do so.

Outcome: The teen’s family sues your organization, alleging malpractice. Despite winning the lawsuit, you must pay $30,000 in legal expenses, which is covered by your Professional Liability Insurance.

directors-officers-non-profit

Problem: A member of the Board is found to have mismanagement of government-granted funds. They are named in a lawsuit for breach of fiduciary duties.

Outcome: Your Directors & Officers Insurance covers the legal expenses and settlement fees, totaling $120,000.

Frequently Asked Questions about Non-Profit Insurance

What is the difference between Public Liability Insurance and Commercial General Liability Insurance?

The primary difference between Public Liability Insurance and Commercial General Liability (CGL) insurance is the risks they cover. Public Liability Insurance provides financial coverage against the public’s claims against your business for personal injury or property damage. CGL is a more accessible form of insurance that provides more extensive coverage, covering personal and advertising injuries and everything public liability covers.

Does Non-Profit Insurance cover volunteers?

Not all non-profit insurance policies automatically include coverage for volunteers. The level of risk varies across roles (i.e. administrative vs. frontline) and may require different coverage levels. Review your policy with a broker to understand whether or not your coverage extends to those donating their time to your organization.

Do non-profit Directors and Officers have the same responsibilities as corporate board members?

Yes, both corporate and non-profit board and advisory members are required to exercise their fiduciary duties in the best interest of the business or organization. Board members have a responsibility to uphold the three levels of fiduciary duty: duty of care, duty of loyalty, and duty of obedience. While a shield law may protect a board or advisory group, individual members can be held personally liable for breach of these duties in both corporate and nonprofit settings.

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