Commercial auto insurance for nonprofits
Commercial auto insurance covers your legal bills, medical expenses, and property damage if your nonprofit-owned vehicle is involved in an accident. It also pays for damage to your vehicle from weather or vandalism, along with car theft.
Commercial auto insurance covers the vehicles you depend on
An auto accident could have a lasting financial impact on a nonprofit organization, especially if another person is injured. When you compare the potential cost of an auto accident to the average annual premium for commercial auto coverage (about $151 per month for nonprofits), it's easy to see why commercial car coverage is the better deal.
Commercial auto insurance is required in most states for business-owned vehicles, which makes this policy indispensable.
How does commercial auto insurance protect your business?
Commercial auto insurance helps cover the cost of lawsuits, property damage, medical bills, and other expenses arising from an accident. It also provides coverage if your vehicle is stolen or damaged by weather or vandalism.
Your policy can be tailored to match your business needs and budget. For example, you can choose a comprehensive policy that covers vehicle damage from all causes, or damage from collisions specifically.
Who needs commercial auto insurance?
Nonprofit-owned vehicles, such as a van used for animal rescues or a charter bus for a church youth program, must be covered by commercial auto insurance.
Commercial auto insurance may be required if you:
- Drive a business-owned vehicle
- Transport signage and equipment to events
- Send employees on errands during work hours
State regulations determine how much coverage you need. Your commercial auto insurance policy must fulfill your state's requirements for auto liability insurance.
Find commercial auto insurance requirements in your state
What coverage can commercial auto provide for nonprofit organizations?
Beyond your state's requirements, you can choose the extent of coverage for company vehicles at your nonprofit. Your policy may cover:
Legal expenses
If your counseling center is sued over an auto accident, legal fees can get out of hand fast. You may also end up paying for a settlement or court-ordered judgment out-of-pocket if not insured.
Medical expenses
If the driver of your nonprofit's vehicle is injured, along with any passengers, this policy can cover the cost of medical care.
Collision
Collision coverage pays for damage to your organization's car, truck, SUV, or any other type of vehicle, no matter who's at fault.
Motorists without insurance
Underinsured motorist coverage / uninsured motorist coverage can help pay for damage caused by drivers who are carrying less than the required amount of insurance, or who don't have any coverage.
Non-collision damages
A comprehensive business auto insurance policy can pay for non-collision damages, including vandalism, theft, and fire.
Personal or rented vehicles may need additional coverage
Commercial auto insurance only covers nonprofit-owned vehicles, but sometimes employees drive their own cars for business purposes.
Business use is the main exclusion for a personal auto insurance policy. Hired and non-owned auto insurance (HNOA) offers liability coverage for nonprofit employees or volunteers who get into an accident while driving their personal vehicle to conduct business for the organization. It also covers leased or rented vehicles.
Top nonprofits we insure
How much does commercial auto insurance for nonprofits cost?
Insureon's nonprofit organization owners pay an average of $151 per month for commercial auto insurance. However, you could pay more or less depending on your risks.
Nonprofit insurance costs depend on several factors, including your organization's operations, history of claims, and driving records.
What factors impact nonprofit auto insurance costs?
Several factors influence the cost of commercial auto insurance for nonprofit organizations during the underwriting process, such as:
- The type of nonprofit services offered: The services your nonprofit provides can affect its level of driving risk. For example, organizations that transport clients or volunteers, deliver meals, or travel frequently to fundraising events may pay more than nonprofits with limited vehicle use.
- Equipment and property transported: Regularly transporting equipment, supplies, or other valuable items can increase your risk exposure of damage to property while in transit. Insurance carriers may consider the type and value of items carried in your vehicles when calculating costs.
- Number of covered vehicles: Organizations with larger vehicle fleets typically pay more for commercial auto insurance because they have more vehicles to insure and maintain.
- Annual revenue: A nonprofit's revenue (e.g., grants, donations, and program fees) can help insurers assess the size and scope of its operations. Larger organizations may have greater vehicle usage, which can lead to higher premiums.
- Employees and their driving records: Insurers review the number of employee and volunteer drivers for your nonprofit and their driving histories. Drivers with clean records generally help lower insurance costs, while accidents, traffic violations, or DUIs can increase premiums.
- Where your nonprofit operates: Location plays an important role in insurance pricing. Not-for-profit organizations that operate in areas with heavy traffic, higher accident rates, or increased vehicle theft may pay more for coverage.
- Coverage limits and deductibles: Higher coverage limits provide greater financial protection but typically result in higher premiums. Choosing a higher deductible can help reduce your monthly insurance costs.
- Claims history: A history of filing claims may signal a higher risk to insurers and lead to increased premiums. Nonprofits with few or no claims often qualify for more favorable rates.
- Risk management and safety programs: Organizations that prioritize driver safety may be rewarded with lower insurance costs. Driver training programs, background checks, vehicle maintenance schedules, and written safety policies can help reduce accidents and claims.
- Coverage add-ons and endorsements: Optional coverages and endorsements can increase the cost of your policy. Common additions include HNOA coverage, roadside assistance, rental reimbursement, higher liability limits, and additional insureds.
Other important insurance policies for nonprofits
While commercial auto insurance covers many risks, it doesn't provide complete protection. Other nonprofit insurance policies to consider include:
General liability insurance pays for legal expenses related to client property damage and bodily injuries, along with advertising injuries such as slander.
Business owner's policy (BOP) bundles general liability insurance with commercial property insurance, often at a lower rate than if the policies were purchased separately.
Professional liability insurance, also known as errors and omissions (E&O) insurance, helps cover legal expenses if your nonprofit is sued for mistakes or negligence.
Workers’ compensation insurance is required in most states for organizations that have employees. Even when it's not required, it's a wise investment as it'll cover medical costs for work-related injuries, which could be denied by personal health insurance.
Directors and officers insurance, also called D&O insurance, protects board members and officers if they're sued for a decision they made on behalf of your nonprofit that led to financial loss.
Employment practices liability insurance (EPLI) covers legal costs if a nonprofit is sued for violating employee rights, such as wrongful termination. Both D&O and EPLI can be purchased in a bundle since they're both a type of management liability insurance.
Find free auto insurance quotes and buy online with Insureon
Are you ready to safeguard your nonprofit organization's vehicles with commercial auto insurance?
Complete Insureon’s easy online application today. You can also consult with an insurance agent on your business insurance needs. Once you find the right, affordable policy, you can begin coverage and get your certificate of insurance (COI) in less than 24 hours.
What our customers are saying
The average costs on this page were derived from our data on small business owners in the nonprofit field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
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