The Best E&O Liability Insurance for Non-profits

Insurance Business America has engaged the country’s top brokers in one-on-one interviews and surveys to determine the leading Non-profits Errors and Omissions (E&O) products. IBA’s inaugural Five-Star Excellence Award in E&O for Non-profit celebrates companies not only with outstanding product offerings, but also first-class broker support and industry knowledge. The Five-Star Excellence Award allows brokers to understand the partners their peers have chosen to present to clients – giving you an upper hand when selecting insurers to work with.
 

Methodology

Determining America’s top insurance products takes a keen understanding of the market offerings – that is why IBA has enlist the help of thousands of brokers to determine the 2021 Product Awards. Read more about how we determined our winners here.

 

5-Star Excellence Awards

  • CFC Underwriting
  • Chubb
  • eRisk Solutions
  • Hiscox
  • Travelers
  • USLI - United States Liability Insurance Group

What is non-profits’ errors & omissions (E&O) insurance?

Lawsuits and other claims arising from real or perceived mistakes and negligence can have devastating effects on non-profits and other charitable organizations as the cost of these can range in the tens to hundreds of thousands of dollars. This makes errors and omissions (E&O) insurance necessary.

 

E&O insurance is a form of professional liability coverage that protects non-profit organizations against the costs of a claim made by an individual or other groups, including volunteers and donors. It typically covers expenses incurred by the agency from litigation, settlement, and payment of damages. The nature of the organization, where it is located, and previous claims often determine the prices of the policies.

 

However, E&O policies do not usually protect against costs stemming from criminal prosecution and liabilities arising from civil lawsuits.

 

What makes non-profits’ E&O insurance different from other liability coverages?

Just like private corporations, non-profit groups and other charitable organizations need insurance coverage against claims of real or perceived mistakes and negligence brought by clients, donors, volunteers, and other groups. E&O insurance is a form of professional liability coverage that protects non-profit organizations against the costs incurred from lawsuits resulting from these claims.

 

E&O policies, much like D&O insurance, cover for claims of malpractice or negligence. But unlike D&O insurance, which is specifically designed for directors, officers, and others member of an organization’s upper management, E&O or professional liability insurance provides protection to all members of a non-profit group.

 

How much E&O insurance do non-profit organizations need?

A policy’s cost is determined by a range of factors, including the nature of the organization, where the non-profit is located, and claims that have been paid out previously. Some insurance companies provide a limit starting $1 million and can top $3 million. Others offer a maximum limit of $10 million, depending on the level of risk exposure.

 

How does E&O insurance protect non-profit organizations?

E&O policies protect non-profit organizations and other charitable institutions from financial losses incurred from lawsuits by covering the cost of litigation, settlement, and punitive damages.

 

However, E&O insurance do not usually cover expenses stemming from criminal prosecution and liabilities arising from civil lawsuits.

 

What is the difference between E&O and D&O insurance?

Director’s and officers’ (D&O) insurance, also known as management liability insurance, protects members of the executive management team of a non-profit organization or charitable institution from monetary losses incurred from lawsuits as result of their management decisions. Errors and omissions insurance, also known as professional liability insurance, protects non-profits from accusations of negligence or failing to deliver services. E&O policies provide cover for any representative or volunteer of a charitable group, not just its upper management.

 

How to choose the right errors and omissions insurance for your non-profit

E&O insurance varies in coverage, key features, and premiums depending on the industry your organization is serving. To find the right professional liability policies that suit the services your group provides, it is still best to talk to an experienced broker from a reputable insurance provider.

 

This year in E&O insurance...

 

Hanover study reveals golden opportunity for insurance agents in E&O

A recent survey found that while nearly half of professional service providers face considerable professional liability exposure, a fifth of respondents say that they do not have any professional liability insurance at all.

 

Professional liability risks pile up during the pandemic

As companies return their employees to work across the US, and then have to bring them home again as reopening plans in certain states shift in the face of the coronavirus, they face a litany of professional liability challenges.