The Morse Agency

2215 Third Ave. N.
Anoka MN 55303

PHONE: 763-421-0550
FAX: 763-421-1622
800-557-0550

Frequently Asked Questions

General Questions

What types of insurance may a nonprofit organization need?


There are three types of insurance that all nonprofit organizations may need to cover risks incurred by being in business. The policies most often needed are Workers Compensation, Office Package policy and Directors and Officers liability coverage.

 

Insurance Policy Types


Workers Compensation


Workers Compensation is mandatory for employers in Minnesota with paid employees, by state statute. This coverage pays benefits for accident or illness incurred on the job. The premiums are based on the type of work done by your employees, and their payroll amounts for the 12-month policy year. The state sets the rates and benefits for all employees in the state. This coverage may be purchased from the state "pool" or a workers compensation company through any insurance agent.


Office Package
  • An office package policy typically covers general liability exposures, (slip and fall, meetings away from the office, special fundraiser's, sexual abuse of clients, non-owned auto liability) and business property, employee dishonesty, and other special property needs (buildings, special computers, portable equipment, etc.).

  • There are a few companies that specialize in these package policies for nonprofit's and offer coverage that is superior to a policy from a general insurance company. Make sure to check with an agent who has written numerous policies for nonprofit's to be safe with the coverage's your nonprofit needs.

Directors and Officer Liability


Directors and Officers liability policies protect the board from suits brought against the nonprofit for employment practice problems (wrongful firing, wrongful hiring, harassment on the job, etc.) These problems make up over 90% of the suits defended by directors and officers liability policies. The policies also defend suits against the board for wrongful handling of the nonprofit revenues (investing all your money in Petters investments, an arts group spending money for housing for the homeless instead of art). There are a few companies specializing in policies for nonprofit D&O, an experienced agent who has written many of these policies will be able to provide the correct quote for your organization.

 

Business Auto Coverage