When running a nonprofit organization in New Hampshire, ensuring that the organization is properly protected is essential for its smooth operation. From liability concerns to employee safety, the right nonprofit insurance can help safeguard the organization from a variety of risks. At Cunningham Associates Insurance, we understand the unique needs of nonprofit organizations, and we’re here to help guide you through the different types of insurance you might need. This blog post will answer some key questions to help you understand the coverage options available for nonprofits in New Hampshire.

 

What Types of Insurance Do Nonprofits Need?

Nonprofits often face a unique set of challenges and risks. Unlike for-profit businesses, nonprofits typically deal with volunteers, donations, and services aimed at supporting the community. Therefore, it’s essential for nonprofits to have a combination of insurance policies tailored to their operations.

Common insurance types nonprofits may need include general liability insurance, commercial property insurance, professional liability insurance, and workers’ compensation insurance. The specific needs of your nonprofit depend on the size of your organization, its operations, and the people it serves.

Why is General Liability Insurance Important for Nonprofits?

General liability insurance is one of the most essential coverages for any nonprofit organization. It helps protect against common risks such as bodily injury, property damage, and personal injury claims that may arise during the course of business.

For example, if someone is injured at a nonprofit event or the nonprofit’s premises, general liability insurance can help cover legal fees, medical bills, and settlement costs. Additionally, it can provide protection against damage to third-party property, such as if your nonprofit accidentally damages property during a community service project.

While New Hampshire is known for its low liability risks, having this coverage can help provide peace of mind for nonprofit directors, staff, and volunteers.

Do Nonprofits Need Commercial Property Insurance?

Commercial property insurance is crucial for protecting the physical assets of your nonprofit organization. Whether you own a building or lease office space, property insurance covers the costs of repairing or replacing the property in the event of damage due to fire, theft, vandalism, or other disasters.

Nonprofits often rely on donations of equipment, furniture, and office supplies, and these items can be expensive to replace. Property insurance can also cover business interruption costs, helping the organization continue its operations while repairs are being made.

For nonprofits in New Hampshire, where winter storms and flooding can occur, it’s especially important to ensure that your property is properly covered against severe weather damage.

What is Professional Liability Insurance and Does My Nonprofit Need It?

Professional liability insurance, sometimes called errors and omissions insurance, is another important coverage for many nonprofit organizations. This type of insurance is designed to protect your nonprofit if it is sued for negligence, mistakes, or failure to deliver services as promised.

If your nonprofit provides professional services or advice—such as legal, healthcare, or financial counseling—this insurance can help cover the costs of defending the organization and paying settlements if necessary. Even if your nonprofit offers non-professional services, such as organizing community events, professional liability insurance can still be beneficial if something goes wrong and the organization is held accountable.

What Does Workers’ Compensation Insurance Cover for Nonprofits?

In New Hampshire, nonprofits that have employees are generally required to carry workers’ compensation insurance. This insurance provides coverage for medical expenses and lost wages if an employee is injured while on the job. Workers’ compensation can also cover the cost of rehabilitation and disability benefits.

Even though nonprofit employees may not face the same level of physical risk as those in other industries, accidents can still occur. For example, employees working at fundraising events or handling heavy equipment could suffer injuries. Workers’ compensation insurance ensures that your nonprofit meets the state’s legal requirements and that your employees are protected if accidents occur.

Is Volunteers’ Coverage Necessary for Nonprofits?

Nonprofits in New Hampshire often rely heavily on volunteers to fulfill their mission. While volunteers are not covered under traditional workers’ compensation insurance, it may be a good idea for your nonprofit to obtain volunteer coverage.

Volunteer liability insurance can help protect the organization and the volunteers themselves in the event of an accident or injury. It can also help protect against claims of negligence or misconduct if a volunteer’s actions cause harm during the course of their work with your nonprofit.

If your nonprofit has volunteers working at events, managing donor information, or participating in other activities, ensuring that they are covered is an important step in mitigating risks.

Do Nonprofits Need Directors and Officers (D&O) Insurance?

Directors and officers (D&O) insurance protects the leadership of your nonprofit organization—its board members, directors, and officers—from personal liability. This coverage is critical for organizations with a board of directors or officers who make important decisions about the nonprofit’s operations, governance, and finances.

D&O insurance can help protect against claims of mismanagement, failure to fulfill duties, or breach of fiduciary responsibilities. If a board member or officer is sued personally for their role in the nonprofit, D&O insurance can help cover legal defense costs and settlements, providing a safety net for those in leadership positions.

What About Cyber Liability Insurance for Nonprofits?

Nonprofit organizations face a growing risk of cyber threats. From protecting donor information to safeguarding sensitive client data, nonprofits are prime targets for cybercriminals. Cyber liability insurance helps protect nonprofits from the costs associated with data breaches, ransomware attacks, and other cybersecurity incidents.

This insurance typically covers the costs of notifying affected individuals, managing the fallout from a data breach, and providing credit monitoring services. It can also help with legal fees and the costs of restoring your nonprofit’s reputation after a cyber event.

If your nonprofit handles sensitive data, stores personal information, or operates online systems, cyber liability insurance should be a serious consideration.

How Can Cunningham Associates Insurance Help My Nonprofit in New Hampshire?

At Cunningham Associates Insurance, we understand that nonprofits have unique risks that require specialized insurance solutions. Our team can help assess your nonprofit’s needs, recommend the appropriate coverage options, and tailor a package that suits your organization’s size, scope, and activities.

Whether you’re just starting out or you’ve been established for years, we’re here to help ensure your nonprofit is fully protected. Our expertise in nonprofit insurance in New Hampshire ensures you’ll get the right coverage at the best possible rates.

Reach out to Cunningham Associates Insurance today to discuss how we can help protect your nonprofit’s future!