Nonprofit Insurance in Connecticut: Beyond D&O to Volunteers, Events, Abuse, and Property

Short answer: A Connecticut nonprofit typically needs general liability, directors and officers liability (often packaged with EPLI), property and business income, abuse and molestation coverage if it serves minors or vulnerable adults, volunteer accident coverage, hired and non-owned auto, special event and liquor liability for fundraisers, crime coverage for donations, and cyber. Grants, leases and government contracts often specify required limits.

The board: D&O and EPLI

Volunteer directors face claims from employees, donors, members and regulators. D&O with employment practices liability is the foundation; see D&O for Connecticut nonprofits. Connecticut's harassment training rules apply to nonprofits with three or more employees; see EPLI.

Programs and people

• Abuse and molestation for youth programs, camps, mentoring, and services for seniors or people with disabilities. Screening and two-adult policies are underwriting requirements.
• Volunteer accident coverage pays volunteers' medical costs after injuries, since volunteers are generally not covered by workers' compensation.
• Professional liability for counseling, health, legal aid or educational services.
• Hired and non-owned auto when staff and volunteers drive their own cars for the organization.

Fundraising and events

• Galas, golf outings and road races may need special event liability; serving alcohol adds liquor liability. See liquor liability.
• Events at donors' homes should be reviewed so the host's homeowners policy is not the only coverage; see hosting events at home.
• Raffles and auctions may involve permits and donated property that needs insuring.

Property, money and data

• Property coverage for owned or leased buildings, donated equipment and collections, at replacement cost.
• Crime coverage for employee and volunteer theft of donations and social engineering fraud.
• Cyber for donor and client data; Connecticut's breach notification law applies regardless of nonprofit status.

New England Insurance, an independent Connecticut agency in Bridgeport since 2012, works with nonprofit boards and executive directors on complete programs. Contact us.