Several factors contribute to the cost of nonprofit business insurance, such as property size and number of staff. Cost estimates are sourced from policies purchased by Insureon customers.
General liability insurance costs for nonprofits
Nonprofit organizations pay a median premium of about $45 per month, or $500 per year, for general liability insurance. This policy provides protection for third-party bodily injuries and property damage, along with advertising injuries.
Insureon’s licensed agents typically recommend a business owner’s policy over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance at a discount to protect your church, community center, or other nonprofit facility. Professional liability insurance can also be purchased as an add-on to general liability insurance or a business owner’s policy.
The cost of general liability depends on your industry risks
Among nonprofit organizations that purchase general liability with Insureon, 24% pay less than $400 per year and another 41% pay between $400 and $600 per year. The cost depends on the size of your nonprofit and your industry’s level of risk.
Common general liability policy limits for nonprofit organizations
Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.
Most nonprofit organizations (96%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.
Business owner’s policy costs for nonprofit organizations
Nonprofits pay a median premium of less than $70 per month, or $810 per year, for a business owner’s policy. This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately. The cost of a BOP is driven by the amount of property coverage included. For example, charitable organizations pay a median premium of $669 for a BOP, while churches pay a median of $889 and community centers pay $1,088.
A BOP protects against third-party injuries and property damage, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s licensed agents. You can also add professional liability insurance to a BOP for increased savings and more complete coverage.
The cost of a BOP depends on your business property value
Among nonprofit organizations that purchase a business owner’s policy with Insureon, 32% pay less than $600 per year, and another 38% pay between $600 and $1,200 per year. The cost increases along with the value of your nonprofit’s business property.
Professional liability insurance costs for nonprofit organizations
Charitable organizations, churches, and other nonprofits pay a median premium of less than $50 per month, or $575 per year, for professional liability insurance. Also known as errors and omissions insurance, this policy offers critical coverage for nonprofit organizations, including legal fees related to professional mistakes and accusations of negligence.
It’s common for nonprofits to add this policy to their general liability policy or a business owner’s policy for additional savings and coverage.
Directors and officers insurance costs for nonprofits organizations
The median premium for directors and officers insurance (D&O) for nonprofit organizations is about $70 per month, or $855 annually. This policy can protect your nonprofit’s directors and officers from lawsuits related to mismanagement of funds, failure to comply with regulations, or failure to perform official duties.
Directors and officers policy limits for nonprofit organizations
Most nonprofit organizations choose D&O policies with a $1 million generic limit.
Workers’ compensation insurance costs for nonprofit organizations
To meet your state’s requirements and avoid penalties, nonprofit organizations with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness. With a median premium of about $80 per month, or $980 per year for nonprofits, policy cost is determined by your number of employees and their occupational risk, among other factors.
The cost of workers’ comp depends on the size of your workforce
Among nonprofit organizations that purchase workers’ compensation insurance with Insureon, 24% pay less than $600 per year and another 34% pay between $600 and $1,200 per year. The cost increases with the number of employees who work for your nonprofit.
Compare quotes from trusted carriers with Insureon
Insureon’s nonprofit business insurance agents work with top-rated U.S. carriers to find affordable coverage that fits your organization. Apply today to compare multiple quotes with one free online application. Work with an account manager specializing in the unique risks of charitable organizations, churches, and animal shelters.