Serving is a big part of the culture here in Texas.  Because of this, nonprofit organizations are the heartbeat of our community.  We all benefit from the positive change in economics, culture, history and quality of life that results from the work of these great and much needed organizations.


A nonprofit cannot run on a mission alone.  Like any for profit business, nonprofits require proper leadership, funding and sound business practices in order to succeed long term.  Furthermore, they need the proper protection in the way of insurance coverage to keep everything intact.

The price of insurance is always a challenge for nonprofits as it is one of the larger expenditures listed on income statement.  Maneuvering the insurance maze to find the most comprehensive coverage at the best possible price is not an easy one, but we can help.  Below are some other things for you to consider which can impact your mission as well as your bottom line.

Avoid allowing multiple insurance agents to insure different parts of your program as this can leave you open to unnecessary risk.   If a loss were to occur, these various agents and carriers could deny paying their part of the claim by saying the other party is responsible.  Also, having only one agent could mean additional savings with multi-policy discounts.  Additionally, relying on an industry expert helps you manage time more efficiently as does contacting only one person in the event of a claim.  With limited staff and other resources, being resourceful is a must.

The Board of Directors act as the governing body and they are personally liable for all financial decisions of the organization.  Therefore, the first order of business is to secure a Directors & Officers Liability policy to protect these individuals (typically community volunteers) as well as the viability of the organization.  This will help you recruit top notch board members.

Social events are popular fundraisers and these signature events grow and gain momentum over time.  It’s important to understand what is covered by your general policy as most likely the coverage will not extend to include the event.  Additional Special Event Insurance is often the best solution.

Are you accepting donations on-line?  Are you protecting your donor’s list properly?  One of the fastest and increasingly largest claims are being paid by Cyber Liability coverage.  The right policy will protect your organization from fees & fines from internet hostage situations, identity theft, and also a simple breach of privacy.  Call us to learn more.  We’re happy to provide a free assessment.

Area nonprofits are diverse.  They serve different groups in a variety of ways.  They garner support and funding from varying constitutes and they are in different growth stages.  There is not a one-size fits all policy.  Let us help you discover a plan that will fit your individualized needs and budget.

Teresa Cain teaches Nonprofit Insurance Risk Management with the NonProfit Management Center of the Permian Basin.   Teresa extends a personal invitation to participate in one of these classes.  Contact us or the NonProfit Management Center of Midland for class information.