Designing Specialized Insurance Coverage to Suit the Unique Demands of Today's Nonprofits

Your nonprofit clients, with their distinct mission-driven focus and often limited resources, face a different set of risk-management challenges compared to their for-profit counterparts. From volunteer-related liabilities to property coverage for donated spaces and fundraising, the insurance landscape for nonprofits can be complex and multifaceted and translate into specific and specialized insurance needs.

For you, as an insurance professional serving the nonprofit sector, it’s important to help your clients understand that they have the flexibility to create a customized insurance plan that aligns with their unique needs and specific risk profile. Here are five ways you can help your clients achieve this:

  1. Creating specialized insurance coverage based on the exposure. You can help your clients create a customized insurance plan based on their specific operations, activities, and assets. For example, an organization that regularly uses volunteers or that works with children may require specialized insurance coverage.
  2. Conducting regular risk assessments. By regularly reviewing potential vulnerabilities, you can identify risk exposures and then customize a client’s insurance coverage so that it specifically addresses them. For example, has there been a change in the board of directors that requires coverage for directors and officers? What about the potential for a cybersecurity risk such as a breach?
  3. Customizing policy limits and deductibles. Your nonprofit clients have the flexibility to adjust their policy limits and deductibles to meet their financial capacity and risk tolerance. For example, should liability limits be increased for greater protection? What about a higher or lower deductible?
  4. Adding additional coverage when needed. Nonprofits often host special events, enlist the help of volunteers, and provide specialized support services. It’s important to educate your clients that when these specific risk exposures arise, you can help by increasing insurance protection by way of policy riders, endorsements, or other supplemental coverages.
  5. Increasing liability coverage for professional services. Many nonprofits provide professional services such as counseling, legal and financial advice, and other support services. Your clients can add professional liability coverage that’s tailored to their specific field to ensure that the organization has adequate protection against liabilities associated with professional services.


Each nonprofit’s insurance needs are unique. In addition, organizations can experience a change in operations, assets, and risks that requires them to update their policies. By conducting regular policy reviews, you can help your nonprofit clients make changes that are essential for comprehensive protection.

About Charity First

Charity First is committed to providing our retail partners across the country with best-in-class underwriting, consistent and responsive service, and risk management services that include directors’ and officers’ liability insurance and accident insurance for volunteers and participants. To learn more, please contact us at 800-352-2761 or