Charity Insurance in Massachusetts

What Coverages Does Nonprofit Insurance Come With?

The exact coverages that nonprofit insurance comes with can vary from policy to policy, but there is a range of protections that policies frequently make available. Many of these coverages can be segregated into liability protections and property protections.

Liability protections normally shield against instances where another party could hold a charity responsible for injury, damage or other harm. Some common liability protections that charities may want include:

• General Liability Insurance, which may cover common accidents resulting in third-party injury or property damage
• Non-Owned or For-Hire Vehicle Insurance, which may provide liability coverage for vehicles that a charity doesn’t own but uses
• Directors and Officers Insurance, which may provide liability coverage for leaders of a charitable organization

Property protections normally guard assets that a charity has. Some common property protections that charities should consider are:

• Commercial Vehicle Insurance, which might cover charity-owned vehicles
• Fidelity Insurance, which might cover embezzlement, theft or deliberate misappropriation by employees or volunteers
• Loss of Income Insurance, which might cover shutdowns that follow certain disasters or other perils

In addition to these coverages, charities that host special events can also purchase charity event insurance. Charity event insurance is a special event coverage that usually offers protections for a defined short period of time.

Do Charities Need Workers Compensation Coverage?

Many charities have employees and are required by Massachusetts law to carry workers compensation, and some may even want it in case a volunteer is injured. Whether workers compensation is included within a nonprofit insurance policy depends on the specifics of that policy, however. Sometimes the coverage is purchased through a policy, and other times it’s acquired separately.