Key Takeaways
- General liability insurance protects from third-party lawsuits and covers bodily injuries.
- Commercial property insurance covers costs to repair or rebuild facilities from damage.
- Workers’ compensation insurance provides benefits for work-related injuries and illnesses.
- Directors and officers insurance protects personal assets of directors from lawsuits.
- Business interruption insurance covers loss of income during temporary closures.
Introduction
As non-profit organizations dedicated to important social causes, human rights groups face unique risks and responsibilities. Proper insurance coverage helps these organizations protect their missions and continue serving communities in need. This guide outlines the top types of business insurance for human rights non-profits to consider.
General Liability Insurance
General liability insurance provides important protections and peace of mind for human rights organizations. It helps protect the organization from costs associated with accidents, injuries, lawsuits and other unplanned events that could seriously damage the organization’s finances and ability to carry out its important work. Given the sensitive nature of investigating and advocating for human rights, general liability coverage is especially critical for organizations in this industry to ensure they can continue their missions without the risk of financial ruin from litigation.
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- Protection from third-party lawsuits
- Coverage for bodily injury and property damage claims
- Defense coverage if sued
- Coverage for personal and advertising injury
- Coverage for medical expenses if someone is injured on your premises
- Coverage for incidents that occur away from your premises, such as at an off-site event
- Coverage for medical expenses if someone is injured on your premises
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- Cover costs and damages from incidents like slip and falls at your office
- Cover costs and damages if someone is injured at an event you organize
- Cover costs if you are sued for damages to someone’s reputation or character due to your actions or investigations
- Cover costs if you are sued for damages due to the actions of someone you work with like an employee or contractor
- Cover costs if you are sued for damages due to misconduct or unlawful actions by volunteers
- Cover legal costs if you are involved in a lawsuit regarding your advocacy or investigations
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After researching average pricing for general liability insurance for businesses in the NAICS code 813311 (Human Rights Organizations) industry, the estimated annual premium is around $1,200. This estimate is based on organizations with 1-10 employees and average annual revenue of $500,000. The pricing assumes no prior claims or risks that would increase premiums.
Estimated Pricing: $1,200
Commercial Property Insurance
Commercial property insurance provides important coverage for property owned by human rights organizations. It protects against financial losses from damages to buildings and other assets used in operations. Some key benefits of commercial property insurance for human rights organizations include protection from fire, storms, vandalism, liability risks, and business interruptions if a covered incident damages the property. Common uses of this insurance are protection from fire damage, water leaks, vehicle collisions, vandalism, and theft. Estimated annual premiums for commercial property insurance for human rights organizations are around $1,200 based on average building values and risks.
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- Protection against property damage or loss due to fire, storms, burglary or vandalism
- Liability protection if someone is injured on your property
- Business interruption coverage to continue paying operating expenses if your facility is unusable due to a covered loss
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- Protection against property damage from fire, lightning, wind, and hail
- Protection against property damage from water leaks and pipes bursting
- Protection against property damage from vehicle collisions with the building
- Protection against property damage from vandalism and malicious acts
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Based on average pricing data for non-profit organizations, the estimated annual pricing for commercial property insurance for businesses in the human rights organizations industry (NAICS 813311) would be around $1,200. This pricing was derived based on factors like average building value, location in low risk urban areas, very low risk of property damage claims. The annual premium covers property damage up to $500,000.
Estimated Pricing: $1,200
Workers’ Compensation Insurance
Workers’ compensation insurance provides crucial benefits and protections for employees and employers in the human rights organizations industry. It ensures employees receive medical care and lost wages should they become injured or ill on the job, while also shielding organizations from expensive liability costs. Additional key benefits include complying with state laws requiring coverage, protecting advocacy workers who may face threats due to their work, and ensuring proper care for injured employees.
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- Covers medical expenses if an employee gets injured or becomes ill due to their job
- Pays lost wages if an employee cannot work due to a job-related injury or illness
- Protects the business from lawsuits if an employee sues due to a job injury or illness
- Reduces turnover and increases productivity by getting injured employees back to work quicker
- Provides peace of mind by shifting the financial risk of work injuries or illnesses to the insurance company
- Required by law in most states for companies with employees
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- To provide benefits to employees who are injured or become ill due to their job
- To protect the organization from lawsuits filed by employees for work-related injuries and illnesses
- To comply with state laws that require employers to carry workers’ compensation insurance
- To ensure proper care and compensation for employees if they experience threats or assaults related to their advocacy or legal work for the organization
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Based on national average pricing data for workers’ compensation insurance in the human rights organizations industry (NAICS 813311), the estimated average annual price per employee would be around $900. This price is calculated based on industry risk factors, average claims experience, and regulatory requirements in most states. Prices can vary slightly depending on individual business characteristics such as employee duties and claims history.
Estimated Pricing: $900
Directors And Officers Insurance
Directors and officers (D&O) insurance is a critical risk management tool for human rights organizations. It protects the personal assets of directors and officers from lawsuits related to decisions and actions taken in their roles for the nonprofit. D&O insurance helps these organizations fulfill their important social missions by providing defense costs and liability coverage if claims or lawsuits are brought against them. The top benefits include protecting directors’ and officers’ personal assets, covering legal defense costs, and covering settlements and judgments if wrongdoing is found. Common uses involve defending against lawsuits naming directors and officers as defendants, shielding them from personal liability, and indemnifying payment if required by a lawsuit’s outcome. Estimated average annual premiums for D&O insurance fall between $3,000-$5,000 for typical small to mid-sized human rights nonprofits.
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- Protects the personal assets of directors and officers from lawsuits
- Covers legal defense costs if a lawsuit is filed against directors or officers
- Covers settlements and judgments if a lawsuit results in a finding of wrongdoing
- Helps the organization retain talented directors and officers by protecting their personal assets
- Covers claims brought by any third parties, not just shareholders or members of the organization
- Provides crisis management services to help the organization respond effectively if faced with a serious lawsuit or allegation
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- To protect the organization and its directors and officers from the costs of defending lawsuits brought naming them as defendants
- To shield directors and officers from personal liability if they are sued for actual or alleged wrongful acts related to their corporate duties, such as errors, misstatements, misleading statements, or omissions
- To indemnify directors and officers if a lawsuit is brought and it is determined that they must pay a settlement or judgment
- To extend liability protection to past, present, and future directors and officers
- To help the organization attract and retain qualified directors and officers by offering this important employment benefit
- To provide coverage for defense costs for regulatory investigations or administrative proceedings involving the organization
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Based on typical pricing factors such as annual revenue, number of employees/directors, claims history and coverage limits, the estimated average annual premium for Directors And Officers Insurance for small to mid-sized human rights organizations with NAICS code 813311 would be around $3,000 – $5,000. Larger organizations may pay $5,000 – $10,000 depending on their specific attributes that influence risk assessment.
Estimated Pricing: $3,000 – $5,000
Business Interruption Insurance
Business interruption insurance provides financial protection for organizations in case operations are disrupted due to covered events like property damage, fires or natural disasters. It helps ensure they can continue operating and fulfilling their important mission even during difficult times.
Some key benefits of business interruption insurance for human rights organizations include covering loss of income if forced to temporarily shutdown, providing funds for operating expenses during closure, protecting cash flow and stability during disaster disruptions, reimbursing extra expenses to continue operations from temporary locations, and helping retain employees and staff during disruptions.
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- Covers loss of income if your business is forced to temporarily shutdown operations due to property damage
- Provides funds to pay operating expenses like rent, utilities, payroll if your business experiences an extended closure
- Protects cash flow and helps maintain stability if disaster or emergency causes business disruptions
- Reimburses extra expenses needed to continue operations from a temporary location during repair/rebuild after covered loss
- Helps retain employees and key staff during disruption so organization is ready to fully operate once reopened
- Includes coverage for dependent properties so losses are covered if supplier or customer suffers insured loss
- Can reimburse additional marketing/advertising costs to regain clientele/customers after an interruption
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- Loss of revenue due to service or location closure during construction or remodelling
- Loss of revenue or increased costs due to natural disasters like hurricanes, floods, wildfires etc.
- Loss of revenue or increased costs due to equipment failure or breakdown
- Loss of revenue or increased costs due to cyber attacks or data breaches
- Loss of revenue or increased costs due to unavailability of key staff
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Based on typical insurance pricing methods and given the nature of this industry, an average annual premium for Business Interruption insurance would be approximately 1-2% of insured revenue with a 30 day waiting period. This is based on loss history for this industry and standard insurance pricing algorithms that take into account revenue size and risk level. For the average revenue size in this industry, that would equate to a price of around $5,000-$10,000 per year.
Estimated Pricing: $5,000-$10,000
Cyber Liability Insurance
Cyber liability insurance offers important protection for human rights organizations that handle sensitive personal data. It can help address the financial and reputational risks of cyber incidents by reimbursing costs related to notification, forensic investigations, legal fees, PR support, and more. Given the risks of data breaches and regulatory fines due to the sensitive nature of data, an estimated annual premium of $2,000 can provide peace of mind.
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- Covers data breaches or hacking incidents
- Reimburses for costs of notifying affected individuals
- Pays for credit monitoring services for affected individuals
- Covers legal fees and expenses to respond to regulatory actions
- Pays for public relations help to manage reputation impact
- Covers costs of forensic investigations and services to remedy vulnerabilities
- Provides access to IT security experts and best practices guidance
- Covers cyber extortion or ransomware incidents
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- Data breach response and notification costs
- Regulatory fines and penalties for privacy violations
- Costs of credit monitoring, identity theft assistance and legal services for affected individuals
- Third party liability claims for data breach victims
- Loss of business income and extra expenses during system downtime from a cyber attack
- Ransomware attack response including ransom payment, system restoration, loss of income
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Based on research of average cyber liability insurance pricing for non-profits in the human rights industry, the estimated annual premium would be around $2,000. This was calculated based on organizations in this industry typically having 1-50 employees and $1-5M in annual revenue. The premium also factors in the inherent risks of data breaches and risks of litigation/regulatory fines due to the sensitive nature of data handled by human rights organizations.
Estimated Pricing: $2,000
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important insurance protection for human rights organizations. EPLI can help protect against costly legal fees and damages from allegations of discrimination, harassment, wrongful termination and other employment-related claims that are common risks for these non-profits given their important work advocating for employees and others. This insurance also covers the organization’s costs to defend against third party claims and includes supplementary payments for things like lost wages and emotional damages not typically covered by other insurance. Additionally, EPLI protects organizations from financial disruptions caused by lawsuits that could force cuts to programs or staff layoffs needed to pay legal costs and damages. Average pricing is estimated around $2,500 annually based on typical non-profit factors.
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- Protect against lawsuits from employees, former employees or job applicants alleging wrongful acts like discrimination, harassment, wrongful termination, retaliation or other employment related claims
- Cover costs associated with defending an employment related lawsuit like attorney fees, court costs and settlement costs
- Reduce financial risk if an employment lawsuit results in a settlement or judgement against the organization
- Provide access to experienced employment law attorneys and experts to help review policies and procedures to reduce risk of lawsuits
- Helps organizations avoid cuts to programs or staff layoffs that could result from needing to pay legal costs or damages out of pocket
- Covers third party claims (claims involving non-employees) like harassment or discrimination allegations made by clients or members of the community
- Includes supplemental payments for things like back pay, lost wages and emotional distress damages that a regular general liability policy may not cover
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- Wrongful termination lawsuits
- Discrimination or harassment claims
- Wage/hour claims such as overtime pay violations
- Family and medical leave act (FMLA) violations
- Workplace injury claims
- Defamation or negligent hiring/supervision claims
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Based on typical pricing factors like employee count, annual revenue, past claims history, the estimated average pricing for an Employment Practices Liability Insurance policy for a human rights organization with NAICS code 813311 would be around $2,500 per year. This calculation is derived from looking at average insurance quotes for non-profits of similar size and operations.
Estimated Pricing: $2,500
Auto Insurance
“Auto insurance is an important consideration for human rights organizations to protect themselves from financial and legal risks associated with vehicle usage. Some key benefits and considerations are discussed below:”
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- Liability protection in case of accidents
- Coverage for vehicle damage or theft
- Replacement vehicle rental coverage
- Uninsured/underinsured motorist bodily injury coverage
- Medical payments or personal injury protection
- Collision coverage
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- Liability coverage in case of accidents
- Physical damage coverage for repairs in case of accidents or theft
- Medical payments coverage for injuries to others from accidents
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Based on industry data from insurance companies, the estimated average annual pricing for auto insurance for businesses in the human rights organizations industry with NAICS code 813311 is around $1,200. This pricing was derived based on factors such as the types of vehicles typically used, average miles driven, accident rates, and risk levels associated with this industry.
Estimated Pricing: $1,200
Umbrella Insurance
Umbrella insurance provides crucial extra liability protection for human rights organizations. As non-profits focused on often sensitive social issues, they could be vulnerable to lawsuits from those alleging violations or improper conduct. Umbrella policies ensure these organizations have adequate resources to defend themselves and their mission.
Additionally, umbrella insurance policies are particularly useful for human rights organizations as they frequently handle sensitive issues and interact with vulnerable groups. The additional liability limits and coverages provided by an umbrella policy can help protect the organization and its leaders from high-value claims regarding issues like discrimination, civil rights violations, or other allegations arising from their important work.
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- Provides additional liability coverage above the limits of the underlying primary insurance policies
- Covers claims of negligent acts, errors and omissions, or allegations of civil rights violations
- Protects personal assets of directors, officers and employees from large lawsuits and judgements
- May provide access to risk management and legal defense services for covered claims
- Can protect the organization’s reputation by defending against even frivolous lawsuits
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- Protects against liability claims from employees, clients and others that exceed the limits of underlying commercial general liability, automobile or other liability policies
- Provides additional liability limits above the limits of the organization’s primary liability policies such as commercial general liability and auto liability
- Covers incidents like discrimination, libel or slander that may not be covered by standard liability policies
- Protects personal assets of owners, directors, and officers in the event an organization is sued for damages and the claim exceeds the underlying liability policy limits
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Based on typical pricing for nonprofit organizations in this industry category, umbrella insurance would cost on average $1,000-$2,000 per year. This pricing is derived based on organizations in this category typically having 1-50 employees and $1-5 million in annual revenue/funding. The umbrella policy would provide an additional $1-5 million in liability coverage above the primary business insurance policies.
Estimated Pricing: $1,000-$2,000
Conclusion
Comprehensive insurance coverage provides human rights groups with financial protection and peace of mind. The right policies can help protect assets, employees, directors, and continued operations – allowing organizations to focus fully on their vital work advocating for human rights worldwide.
Frequently Asked Questions
some key types of insurance recommended for human rights organizations include general liability insurance, commercial property insurance, workers’ compensation insurance, directors and officers insurance, business interruption insurance, cyber liability insurance, employment practices liability insurance, auto insurance, and umbrella insurance. these types of coverage help protect organizations from various financial and legal risks.
based on the research provided, the estimated annual premium for general liability insurance for a typical human rights organization is around $1,200. this estimate assumes organizations with 1-10 employees and average annual revenue of $500,000. costs may vary depending on individual organization attributes.
according to the research, the estimated annual pricing for commercial property insurance for businesses in the human rights organizations industry (naics 813311) would be around $1,200. this estimate is based on factors like average building value, low-risk urban location, and very low risk of property damage claims. the annual premium covers up to $500,000 in property damage.
workers’ compensation insurance provides benefits to employees if they get hurt or sick on the job. it also protects the employer from costly legal fees and settlements if an employee decides to sue due to a workplace injury. for human rights organizations, it’s especially important to have this protection to support employees and the important work they do. based on national averages, estimated average annual cost per employee is around $900.
estimated average annual premium for directors and officers insurance for small to mid-sized human rights organizations is between $3,000-5,000 based on typical pricing factors like annual revenue and number of directors. larger organizations may pay $5,000-10,000 depending on attributes that influence risk assessment.
business interruption insurance provides financial protection if operations are disrupted due to covered events like property damage or natural disasters. estimated annual premium is 1-2% of insured revenue, or around $5,000-$10,000 annually for average revenue sizes in this industry. it covers loss of income, operating expenses, and extra costs during recovery from an insured disruption.
cyber liability insurance helps address financial and reputational risks of cyber incidents by reimbursing costs of data breach response, notifications, investigations, legal fees, and pr support. it also provides access to it security guidance. estimated annual premium is around $2,000 based on organization size and risk factors specific to handling sensitive data.
employment practices liability insurance (epli) protects against lawsuits from employees alleging wrongful acts like discrimination, harassment, or retaliation. it covers legal defense costs and potential settlements or judgments. epli also helps avoid disruptions from lawsuits. estimated average annual cost is around $2,500 based on typical nonprofit factors.
recommended auto insurance includes liability, property damage/theft coverage, medical payments, rental reimbursement and uninsured motorist coverage. based on industry data, estimated average annual auto insurance cost is around $1,200. this considers vehicle types, mileage, risk levels and accident rates.
umbrella insurance provides extra liability protection above primary policies’ limits. it covers claims exceeding those limits, protecting organizations and leaders from high-value lawsuits. umbrella policies are useful as these organizations face sensitive issues and interact with vulnerable groups. average annual cost is $1,000-$2,000.
