Nonprofit Insurance in Texas

What is nonprofit insurance?

Operating a nonprofit organization of any type usually comes with some risks. Most organizations have at least some property or items to protect, and virtually any organization could be sued on account of an accident. To help protect against covered risks, not-for-profit organizations in Texas can get nonprofit insurance.

Nonprofit insurance policies provide tailored protections for not-for-profits. Policies may serve as an important safety net if there’s a major disaster, break-in, or serious accident.

Which not-for-profits in Texas does nonprofit liability insurance make sense for?

Nonprofit liability insurance is something that almost any Texas not-for-profit can benefit from. Nonprofits large and small can be sued if something happens, and plenty can happen.

Nonprofits that have assets of any note, which could be buildings, equipment, inventory, or other items, usually should consider property coverages too.

For example, organizations like the following could probably benefit from nonprofit liability insurance and property insurance protections:

• Religious groups (churches, parachurch ministries, mosques, temples, etc.)
• Children’s programs (after-school programs, preschools, summer camps, etc.)
• Cultural organizations (cultural heritage nonprofits, cultural museums, etc.)
• Advocates (environmental advocates, social advocates, animal rights groups, etc.)
• Land conservation entities (land management nonprofits, land trusts, etc.)
• Charities (homeless shelters, food pantries, soup kitchens, etc.)
• Other 501(c)3 not-for-profit organizations

What nonprofit liability insurance coverages can nonprofits get?

Nonprofit liability coverages normally offer protection in certain situations where a nonprofit could be sued for causing another party harm. Which situations are covered depends on the particular protections chosen. There are several common ones that nonprofits can likely include in their policy:

• General Liability Coverage: Might protect against common accidents that cause injuries or property damage to third parties, and usually also covers defamation.
• Professional Liability Coverage: Might protect against errors that a nonprofit’s employees or volunteers make when acting in a professional capacity.
• Directors & Officers Liability Coverage: Might protect against accusations that a board member or other leader’s decision harmed the nonprofit organization.
• Employment Practices Liability Coverage: Might protect against accusations that a nonprofit discriminates against certain volunteers or employees.
• Cyber Liability Coverage: Might protect against various digital risks, such as website attacks, phishing campaigns, data breaches, and ransomware attacks.
• Special Events Coverage: Might protect against liability risks that hosting specific events presents.
• Social Engineering Fraud Coverage: Might protect against financial losses due to fraudulent or deceptive misrepresentations.
• Umbrella Coverage: Might protect with a secondary layer of liability coverage, for lawsuits that exceed the limits of other nonprofit liability insurance coverages.

What property insurance coverages can nonprofits get?

Property insurance coverages may protect what a nonprofit owns against loss or damage. What’s covered depends on the specific protections chosen. Options typically include:

• Commercial Building Coverage: Normally for any buildings owned by a nonprofit organization.
• Tenants Betterment Coverage: Normally for improvements and upgrades that a nonprofit makes to a leased space.
• Commercial Contents Coverage: Normally for items stored at a nonprofit’s location. This could be everything from office equipment and kitchen appliances, to free swag and specialized products.
• Inland Marine Coverage: Normally for items when they’re taken between locations, which could be to/from events, conferences, fundraisers, or simply different locations.
• Commercial Auto Coverage: Normally for commercially registered vehicles owned by a nonprofit, which could be cars, trucks, or other vehicles, typically protecting against accidents and other damage. 

Do nonprofits need liquor liability coverage if serving alcohol?

Liquor liability coverage is generally recommended anytime alcohol is being served by an organization. Nonprofits ought to consider coverage if they serve adult beverages at an event, as other insurance coverages are unlikely to cover incidents involving drunk attendees. 

If it’s needed for just one event, liquor liability can usually be purchased on a short-term basis. This is something that an insurance agent who specializes in nonprofits can assist with.

Where can not-for-profits in Texas get nonprofit insurance?

If you need help insuring a Texas not-for-profit organization, get in touch with the independent insurance agents at Steve White Insurance. We’ve helped many nonprofits protect themselves, and we can find nonprofit insurance that’ll protect your organization well.