Nonprofit Organizations Insurance in Texas

HEAR WHAT OUR CLIENTS HAVE TO SAY ABOUT MCKNIGHT INSURANCE:

What is nonprofit organizations insurance?

Nonprofit organizations’ insurance is a type of commercial insurance specifically designed to protect nonprofit entities from various risks. This insurance typically covers liability claims, property damage, and other risks that nonprofits may face in their operations. Nonprofit liability insurance is a critical component of this coverage, safeguarding organizations against claims related to bodily injury, property damage, or other legal issues that may arise from their activities.

What type of organizations do we serve?

• Trade and professional associations
• Foundation and grant-making organizations
• Alumni associations and adult membership groups
• Arts and culture organizations (adult-focused)- art councils, museums, clubs
• Civic and service clubs and chambers
• Community development and workforce training (non-residential)- training and placement only
• Faith-affiliated administrative offices (office/admin only)
• Single-program food banks that distribute prepackaged or shelf-stable items (no on-site kitchens or hot meal prep)
• Texas-based mission centers that coordinate mission trips with office-centric operations in Texas (no permanent overseas facilities)

We primarily insure Texas-headquartered organizations with most operations in-state. Most client programs start around $1,500 a year, depending on size, property values, limits, and activities.

Types of Organizations outside our scope 

To respect your time, here are areas that usually fall outside of what we write due to higher or more complex exposures: 

• Housing assistance (shelters, transitional homes) 

• Prepared/hot meal programs or on-sire commercial kitchens 

• Justice-involved services (re-entry, probation/parole programs, regular jail/prison ministry) 

• Clinical/medical or counseling services (behavioral health, addiction treatment, medication management) 

• Animal rescue/equine programs 

• Large event promotion (public events typically over 1,000 attendees) 

• Organizations headquartered abroad or operating permanent overseas facilities 

• Organizations primarily serving minors are overseen on a case-by-case basis, based on organization operations and carrier appetite 

Not sure where you fall? Complete the quick fit check below- we’ll respond promptly.  

Is McKnight Insurance a good fit for your non profit?

Nonprofits come in all shapes and sizes – and not every organization aligns with what McKnight Insurance offers. You’re probably a strong match for our programs if most of the following statements ring true:

• You’re Texas-based with most operations in Texas.  

• You’ve been operating 2+ years (we care review newer, admin-only orgs case-by-case).  

• One primary program makes up around 80% or more of your operations.  

• You do not provide services to minors, housing assistance, justice involved services, or clinical care.  

• Food banks are OK when limited to distribution of prepackaged/shelf-stable items (no on-site kitchens or hot meal prep).  

• International travel is OK when you’re Texas-based, office/centric, and do not operate permanent facilities overseas.  

• Day-to-day activities are office-centric: meetings, training, grants, outreach, member services, small events (generally under 500 attendees).  

• You maintain basic risk controls (volunteer screening, written HR policies, incident reporting, vendor/venue COIs).  

• You can share loss runs or a no-loss letter and basic org documents (bylaws/mission, org chart, program descriptions).  

Which Texas not-for-profits need to have nonprofit organization insurance?

• Charitable organizations: Nonprofits that provide services or assistance to individuals or communities in need.
• Educational institutions: Schools, colleges, and universities that offer educational programs and services.
• Health organizations: Nonprofits that provide health-related services, support, or research.
• Cultural institutions: Museums, theaters, and arts organizations that promote cultural enrichment.
• Religious organizations: Churches, synagogues, and other faith-based organizations that offer spiritual guidance and community support.
• Social service agencies: Organizations that provide support services to individuals and families, such as counseling or housing assistance.

What types of coverage are included in nonprofit insurance?

Nonprofit organizations’ insurance in Texas typically includes several types of coverage tailored to the specific needs of the organization. Some common types of coverage include:

Can nonprofit organizations get coverage for volunteers?

Yes, nonprofit organizations may obtain coverage for volunteers through their liability insurance policies. Most general liability and nonprofit liability insurance policies include coverage for volunteers while they are acting on behalf of the organization. This protection is essential, as volunteers may be exposed to risks while performing their duties, and organizations may be held liable for their actions. Nonprofits should review their insurance policies to ensure adequate coverage for volunteers and understand any limitations or exclusions.

Can nonprofit organizations insure their international operations?

Yes, a nonprofit organization may obtain coverage for international activities or projects. Many insurance providers offer specialized policies or endorsements that extend coverage beyond domestic operations. This may include liability coverage for events, programs, or services conducted overseas. Nonprofits should ensure they communicate their international activities to their insurance provider to ensure appropriate coverage is in place, addressing potential risks associated with operating in different countries.

Is property damage to rented event venues covered under nonprofit organizations’ insurance?

Yes, nonprofit organizations’ insurance may cover property damage to rented event venues, provided that the policy includes liability coverage for third-party property damage. This coverage typically protects the nonprofit against claims arising from accidental damage to property that it rents or uses during events. However, it is essential for nonprofits to review their specific insurance policy and discuss any concerns with their insurance agent to ensure adequate protection is in place for rented venues.

What factors influence the cost of nonprofit organizations’ insurance?

Several factors may influence the cost of nonprofit organizations’ insurance in Texas, including:

• Organization Type and Activities: The nature of the nonprofit’s mission and activities impacts insurance costs. Nonprofits providing direct services (e.g., healthcare, childcare) or engaging in high-risk activities tend to face higher premiums than those focused on advocacy or education.
• Size and Revenue: Larger organizations with higher revenues, multiple locations, or a large workforce often face higher premiums because of increased exposure to risks.
• Claims History: A history of previous claims, especially if recent or frequent, suggests higher risk to insurers, potentially leading to increased costs.
• Number of Employees and Volunteers: The more people involved, the greater the organization’s exposure to risks, which can affect the price of general liability, workers’ compensation, and other relevant coverages.
• Coverage Types and Limits: Nonprofits often purchase multiple types of coverage (e.g., general liability, professional liability, directors and officers). The breadth of coverage and the chosen policy limits directly influence premiums.
• Location: Where the nonprofit operates affects costs due to local risk factors, including natural disaster exposure, crime rates, and state insurance regulations.