Helping Nonprofits Understand Why They Need Insurance

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For many nonprofit organizations around the world, a limited budget is their biggest struggle. As social workers, their work is rooted in their advocacies for children, women, low-income communities, the environment, etc. They truly understand the issues that underserved communities face. As such, they have a clear vision of how they can help both in the short term and in the long term. But they can’t conduct all of their projects and achieve their goals without the proper financial resources.

So, as a result, many nonprofits became thrifty to make sure that the money that does come their way would help the communities they’re trying to serve. They’re not like private companies that splurge in employee outings, office remodeling, and employee perks such as access to fitness centers. Unfortunately, among the things they don’t usually acquire is insurance for their workers.

But you, equipped with effective insurance marketing strategies, can make a case to nonprofits. You can convince them why they need insurance and how it would benefit them in the long term. Here’s how.


The first step that all insurance agents should do first is to do their research. Before they could reach out to a nonprofit, you must understand their work first. Understand their mission. Read through their published literature to fully grasp how they fulfill their mission through their programs. It would be even beneficial if you also understand the issues that their beneficiaries are facing.

Yes, this seems like a ton of work before an initial meeting with a nonprofit. But this step would go a long way because it would show how you are taking the nonprofit’s workers’ best interests to heart. And, most of all, this step will help you learn how to speak their language. Thus, it would be much easier to connect with them and gain their trust.

Insurance Can Help with Their Finances

As mentioned before, having a limited budget is one of the biggest problems that nonprofits face. A huge part of their operations is dedicated to fundraising. Without this aspect of their operations, the whole nonprofit wouldn’t exist at all. Again, this is also why many nonprofits don’t acquire insurance for their workers. There isn’t enough room in the budget no matter how much they want to do so.

But, as the insurance agent, you can convince them of the financial benefits of having insurance. For one, offering insurance as part of the employee benefits would allow nonprofits to offer lower salaries to their prospective workers.

Plus, because nonprofits rely on grants that they may or may not win, many professionals hesitate to join nonprofits. They feel that it would lead to an unstable income. But if there’s insurance as part of the benefits, workers would feel more secure.

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Insurance Secures Nonprofits from Legal Repercussions

As mentioned, nonprofits often rely on funds that were granted to them. Usually, it’s foundations and individuals who grant these funds. And they do so after carefully reviewing how the funds would be used. This is why nonprofits often give detailed budget plans to the foundations and individuals before any check is signed.

But, unfortunately, there are many times when the budget plan isn’t fulfilled. It might be because of circumstances out of their control, such as a pandemic that halts all operations. But because of this, directors and officers of the nonprofit may be sued by the foundations or individuals. If this happens, then nonprofits would have to cover the costs of legal aid and settlements, effectively bankrupting them. As an insurance agent, you can convince nonprofits to avoid this by investing in directors and officers liability insurance.

Long-term Benefits of Insurance

If there’s one thing that nonprofits love, it’s long-term solutions. They are, after all, in the business of creating a lasting impact in the communities that they want to serve. So you can convince them that having insurance creates a lasting impact on the organization itself.

Show them how having insurance can help keep their workers happy and productive. It would keep morale high and steady. Thus, it would help make the organization stronger. Remind them that their mission wouldn’t be fulfilled, and their impact wouldn’t reach their beneficiaries if there isn’t a strong team of workers.

Together with convincing nonprofits to strengthen their organization with insurance, remember as well what you are doing. By helping them stay secured so that they could continue their noble work, you are, in a way, doing your part for the communities. You, too, are helping nonprofits solve real-world problems and create a lasting impact.

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