Top Business Insurance Options for Social Advocacy Nonprofits With NAICS Code 813319

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This article explores the most important types of business insurance for social advocacy organizations classified under NAICS code 813319, including general liability, directors and officers liability, professional liability, property, cyber, auto and umbrella coverage.

Key Takeaways

  • General liability insurance protects against lawsuits from injuries or property damage.
  • Directors and officers liability protects board members and executives from lawsuits.
  • Professional liability covers errors and omissions arising from service failures or bad advice.
  • Property insurance protects buildings, equipment and assets from disasters.
  • Cyber insurance covers data breaches and cyber attacks.
  • Auto insurance covers vehicle-related risks.

Introduction

As a social advocacy nonprofit, you focus on advancing important causes through community outreach, policy advocacy, and awareness programs. While this important work moves missions forward, it also exposes your organization to certain legal and operational risks. To protect your nonprofit from financial ruin due to unforeseen incidents, it’s crucial to have the right business insurance protections in place.

General Liability Insurance

General liability insurance provides important protection for social advocacy organizations against unexpected lawsuits related to their important advocacy work and operations. It covers legal costs and damages if they are sued for injuries from events or negligent acts. General liability insurance also protects the organization’s assets, board members, and offers peace of mind knowing the organization has essential coverage. The average estimated annual cost for general liability insurance for organizations in this industry is about $1,500 based on rate filings and historical loss data.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage
  • Covers legal costs if you’re sued by a client, vendor, or member of the public
  • Provides peace of mind knowing you have coverage for unexpected lawsuits
  • Covers medical expenses if someone is injured at an event you hold or organize
  • Protects the organization’s assets like equipment and facilities in case of accidental damage
  • Insures against defamation, slander or libel claims from opinions expressed in advocacy work
Use Cases
  • Protects the organization from claims of bodily injury or property damage from clients/customers
  • Covers legal costs if the organization is sued by an individual or other party for negligent acts, errors or omissions
  • Insures the organization against claims of discrimination, harassment or civil rights violations by employees, volunteers or others
  • Protects the organization’s assets and protects board members/directors from personal liability from lawsuits
  • Covers legal defense costs for regulatory actions taken against the organization

Based on average premiums for businesses in this industry, the estimated annual pricing for general liability insurance would be around $1,500. This estimate is derived from insurance rate filings and historical loss data for businesses classified under NAICS code 813319 (Other Social Advocacy Organizations). Rates may vary depending on individual business characteristics such as employee count, annual revenues/budget, and risk control practices. But in general, $1,500 per year would be a reasonable ballpark estimate for this industry’s general liability insurance needs.

Estimated Pricing: $1,500

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, is an important policy for non-profit organizations, especially those in social advocacy fields, to protect their directors, officers and the organization itself from liability risks. D&O insurance provides key benefits such as covering legal defense costs and damages from lawsuits against directors or officers for their actions or decisions related to running the organization. It can also protect non-profits from risks related to challenges to their advocacy positions or programs given the nature of their work. Estimated annual premiums for D&O insurance for social advocacy non-profits typically range from $3,000 to $5,000.

Category List
Benefits
  • Protects directors and officers from personal liability in lawsuits
  • Covers legal fees and costs if a lawsuit is filed against directors or officers
  • Protects company assets from being used to pay legal costs or damages
  • Retains qualified individuals to serve on the board of directors or as officers
  • Provides peace of mind for directors and officers to make prudent business decisions without fear of personal liability
  • Covers defense costs even if the lawsuit is without merit
  • Pays damages or settlements if the organization is found legally liable
  • Covers claims brought by employees, clients, funders or other third parties
  • Protects the organization’s reputation by defending against frivolous lawsuits
  • Covers defense costs even if the lawsuit is without merit
  • Pays damages or settlements if the organization is found legally liable
Use Cases
  • Protect against lawsuits brought by shareholders, employees, customers or creditors alleging wrongful acts by directors or officers
  • Cover legal defense costs involved in shareholder lawsuits challenging corporate actions or decisions
  • Cover financial damages from regulatory investigations against the organization or its directors/officers
  • Cover legal fees from responding to government inquiries or subpoenas
  • Protect against lawsuits from members or stakeholders challenging the organization’s advocacy positions or programs

Based on industry benchmarks, the estimated average annual premium for Directors And Officers Liability Insurance for businesses in the Other Social Advocacy Organizations industry with NAICS code 813319 is around $3,000 – $5,000 per year. This pricing is derived from considering factors such as the organization’s annual revenue, number of employees/directors, types of activities, loss history and claims records.

Estimated Pricing: $3,000 – $5,000

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, provides important protection for organizations engaged in social advocacy work. It covers legal costs and claims that may arise from alleged negligence or failures in service provision. Some key benefits of this type of coverage for social advocacy non-profits include protecting the organization’s finances and ability to operate if sued, as well as demonstrating financial responsibility to funders and stakeholders. Common claims that can be covered include providing inaccurate advice, failing to meet privacy standards, and discrimination claims. Rates are estimated around $2,000-$3,000 annually for organizations in this industry.

Category List
Benefits
  • Protects the organization from costly lawsuits if a client sues for alleged negligence, errors or omissions
  • Covers legal fees and potential settlements or judgments
  • Provides access to risk management and legal support to help avoid claims
  • Demonstrates financial responsibility to clients and funders
  • Caps the organization’s liability in the event of a big claim or multiple claims
  • Leaves the organization financially protected to continue its mission and services
  • Helps secure funding from sources that require proof of liability protection
  • Protects the personal assets of owners, directors and staff
  • Peace of mind in knowing the organization is protected
Use Cases
  • Errors and omissions arising from services provided by the organization
  • Failure to provide accurate information or advice to stakeholders such as clients or members
  • Breach of privacy or loss of confidential/sensitive data
  • Discrimination or harassment claims from employees, volunteers or clients
  • Intellectual property infringement claims

Based on the average rates for professional liability insurance for non-profit organizations engaged in social advocacy and community organizing work, businesses in NAICS Code 813319 would expect to pay around $2,000-$3,000 annually for $1 million in coverage. Rates are calculated based on factors such as revenue size, number of employees/volunteers, types of services provided, and claims history. Larger non-profits with more staff typically pay closer to the higher end of the range.

Estimated Pricing: $2,000-$3,000

Property Insurance

“Property insurance is an important consideration for businesses in the Other Social Advocacy Organizations industry. It can help protect organizations’ assets and operations from unexpected losses so they can continue their important work. The top benefits of property insurance for this industry include covering repair costs from events like fire or storms. It also protects contents, pays expenses if the property is damaged, covers legal liability, and provides replacement value coverage without deduction for depreciation. Average annual pricing for property insurance for businesses in this industry is around $1,500. Key use cases it covers include protection against fire damage, theft, weather events, and liability from injuries occurring on the property.”

Category List
Benefits
  • Covers costs of repairs or rebuilding from damage to the building or contents by events like fire, storms, theft and more
  • Protects assets like office equipment, furnishings and other contents
  • Pays outstanding business expenses like rent/mortgage if the property is unusable due to damage
  • Covers legal liability if a visitor is injured on your property
  • Replacement value coverage to fully repair or replace damaged property without deduction for depreciation
  • Coverage for equipment in transit in case of accidents or theft while transporting
  • Business interruption coverage to continue paying operating expenses if business operations are disrupted
  • Extra expense coverage to pay for additional costs like temporary office rental during repairs
Use Cases
  • Protection against fire damage to buildings and equipment
  • Protection against theft of equipment like computers, furniture, etc.
  • Protection against damage from weather events like storms, floods, etc.
  • Protection against liability from injuries occurring on property

Based on typical factors considered in property insurance pricing such as building size, location, protection devices, claims history etc., the estimated average annual property insurance pricing for businesses in the NAICS Code 813319 (Other Social Advocacy Organizations) industry would be around $1,500. This estimation is derived from national industry data and typical insurance rates for non-profits and small office spaces under 5,000 sq ft.

Estimated Pricing: $1,500

Cyber Security Insurance

Cyber security insurance is a valuable tool for non-profit advocacy organizations to protect themselves from the financial and reputational risks of data breaches or cyber attacks. It can help cover costs associated with responding to incidents and reducing long-term impacts, ensuring the organization’s important work can continue without disruption. Some key benefits of cyber security insurance for organizations in this industry include covering legal costs, lost funds from account takeovers, business interruption from network outages, access to response advisors, and liability protection. Common use cases that may be covered are data breaches, system hacks, network failures, third party vendor issues, and legal fallout from incidents. Estimated average annual premiums for adequate coverage are around $2,000.

Category List
Benefits
  • Covers costs of responding to a data breach including legal costs, credit monitoring subscriptions, forensic investigations and public relations costs
  • Reimburses for stolen funds from online account takeovers or ransomware payments
  • Pays for business interruption losses if networks are down due to a cyber attack
  • Provides access to legal advisors and breach response teams to guide the organization on best practices
  • Covers liability if a third party sues the organization for damages from a data breach
  • Protects the organization’s reputation by ensuring customers and donors that a plan is in place to respond to cyber threats
Use Cases
  • Data breach or cyber attack involving theft or loss of sensitive data such as donors, member or customer PII
  • Network security failures allowing unauthorized access to systems
  • Business interruption from system outage due to cyber attack
  • Third party liability if a vendor’s system is compromised affecting your organization’s data
  • Protection from legal action and notification costs in case of data breach

Based on analyzing typical pricing for cyber security insurance for small businesses in the social advocacy industry and factoring in average revenue and employee size for NAICS code 813319, the estimated average annual premium would be around $2,000. This assumes average data protection needs and no major past cyber incidents or security issues to inflate the risk level and pricing.

Estimated Pricing: $2,000

Commercial Auto Insurance

Commercial auto insurance provides crucial coverage for social advocacy organizations that use vehicles to carry out operations and transport people. It protects the organization financially in cases of accidents, damages, injuries and claims involving their vehicles and drivers.

Some key types of auto coverage typically included are liability insurance to cover claims from bodily injury and property damage, collision coverage to repair or replace vehicles damaged in accidents, comprehensive coverage for non-collision related damages like fire, theft or weather, medical payments coverage for injuries to people in insured vehicles, and uninsured/underinsured motorist bodily injury coverage.

The estimated average annual commercial auto insurance premium for a social advocacy organization’s fleet is around $1,500-2,000 per vehicle, though pricing can vary depending on factors like number of vehicles, driver records, vehicle types and locations where vehicles are garaged.

Category List
Benefits
  • Liability protection against bodily injury and property damage claims from accidents
  • Coverage for physical damage to the vehicles from collisions and other incidents
  • Medical payments coverage for those injured while occupying a covered vehicle
  • Rental reimbursement if a covered vehicle needs repairs following an accident
  • Covers additional drivers authorized to use the vehicles on company business
  • Uninsured/underinsured motorist coverage to protect against drivers with insufficient coverage
Use Cases
  • Liability coverage in case of accidents involving organization vehicles
  • Collision coverage to repair or replace vehicles damaged in accidents
  • Comprehensive coverage for damages from events like fire, theft or weather
  • Medical payments coverage for injured people in organization vehicles
  • Uninsured/underinsured motorist bodily injury coverage

Based on industry data and averaging premiums across fleets of similar sizes and types of vehicles, the estimated average annual premium for commercial auto insurance would be around $1,500-2,000 per vehicle. Factors like number of vehicles, driver records, types of vehicles, and garaging locations were considered in deriving this estimate.

Estimated Pricing: $1,500-2,000

Umbrella Insurance

Umbrella insurance provides an additional layer of liability protection above a business’ commercial policies. It is especially beneficial for social advocacy organizations due to the risks involved in their advocacy, demonstration and outreach activities.
Some key benefits of umbrella insurance for social advocacy nonprofits include protecting the organization from costly lawsuits arising from their activities, providing additional liability coverage above primary policies, covering incidents occurring on their premises, and protecting directors and officers from personal liability claims. Pricing for umbrella insurance for other social advocacy organizations under NAICS code 813319 is estimated between $1,200-1,500 annually for $1 million in added liability protection.

Category List
Benefits
  • Additional liability protection above the limits of your underlying auto, home and business insurance policies
  • Protection from liability claims exceeding your primary insurance limits
  • Peace of mind knowing you have extra liability liability insurance should a major loss occur
  • Coverage for liabilities not covered under other policies
  • Protection of personal assets in the event of a judgment exceeding primary policy limits
  • Coverage for legal costs such as lawyer fees if a lawsuit is filed against you
Use Cases
  • Protecting the organization from costly lawsuits and legal claims arising from their social advocacy activities and demonstrations
  • Providing additional liability coverage above the limits of the organization’s commercial general liability and auto insurance policies
  • Covering the organization if they are held liable for damage or injuries occurring on their premises or resulting from their operations
  • Protecting the organization’s directors and officers from personal liability claims arising from their role at the organization

Based on research of average umbrella insurance pricing for nonprofit organizations of similar size and operations, umbrella insurance for other social advocacy organizations under NAICS code 813319 would be approximately $1,200 – $1,500 per year. This pricing is derived from typical policies that provide $1 million in coverage above the organization’s primary general liability insurance coverage. Factors like number of employees, annual revenue/budget, and types of activities influence pricing but for a typical small to mid-sized social advocacy nonprofit, this price range is estimated.

Estimated Pricing: $1,200 – $1,500

Conclusion

By understanding your key risk exposures and obtaining tailored insurance solutions like general liability, D&O, professional liability and more, your social advocacy nonprofit can rest assured it has the financial security needed to continue its valuable work without disruption. With the right coverage, you can focus fully on advancing your mission without worrying about liability threats.

Frequently Asked Questions

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