Liability Insurance 101 for Nonprofits

November 9, 2015

Guest Blog by Kelli Tyler, Associate at Georgetown Insurance Service, Member of Maryland Nonprofits


Meet Kelli at our 2015 Annual Conference on November 13th in the exhibit room and learn more about nonprofit insurance with
Georgetown Insurance Services.



What type of insurance do you need for your nonprofit? Well, that depends. I know that’s not the most helpful answer but each organization is different. The most important thing for you to do when purchasing insurance is to ensure that your agent understands your operations. A lot of nonprofits don’t fit into cookie cutter categories. Coverage needs to be tailored specifically to the type of services you provide.

The following are some types of insurance that your nonprofit may need. Your agent can help you examine your risk to know which are appropriate for you.

Directors & Officers Liability: Protects directors and officers for claims made against them while serving on a board or as an officer. It covers claims resulting from managerial decisions.

General Liability: Protects you in case someone gets hurt on your property or if there is property damage or injury caused by you or your employees.

Professional Liability: Covers claims that arise from the failure to adequately perform a promised service.

Employment Practices Liability: Coverage against claims made by employees for wrongful acts regarding employment related issues, such as wrongful termination, discrimination, sexual harassment, etc.

Abuse Coverage: Provides coverage against a claim of abuse, which is critical for organizations who work with vulnerable populations. It doesn’t matter if a claim is meritless, you will still need to defend yourself.

Hired/Non-Owned Auto (HNOA): Provides liability protection when an employee drives their own vehicle for business purposes or when you or an employee is driving a rented, hired or borrowed vehicle.

Special Events/Liquor Liability: Coverage against claims that might arise out of a special event that is outside your normal operations (Annual Gala, 5K, etc.). Liquor Liability protects you should a claim arise from alcohol being serviced at your event.

Additional coverage your organization may need to consider: Workers Compensation, Umbrella, Property, Business Interruption, Crime, Cyber Liability, Fiduciary Liability, Accident Coverage for Participants and Volunteers, etc.

It’s important to know what your policies say – what they cover, as well as what they exclude. Talk to your agent to make sure they understand your operations so they can ensure you have the proper coverage in place should a claim occur.

Learn more about Georgetown Insurance Services…

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