Navigating Auto Insurance for Nonprofits & Human Service Organizations

Discover how to secure the best auto insurance for nonprofit organizations. Protect your nonprofit's vehicles, assets, and mission with tailored coverage and risk management tools.

September 16, 2023 / CSkidmore

How to Navigate Auto Insurance for Nonprofits & Human Service Organizations

Nonprofit organizations and for-profit human service organizations depend on vehicles to transport residents or necessary supplies to serve their communities. Unfortunately, the risks organizations assume when utilizing fleets can threaten their ability to carry out services and lead to financial challenges. As such,  leaders need to understand how to best protect their organizations with the right nonprofit auto insurance coverage and supporting risk management technology. 

Securing Auto Insurance Coverage for Nonprofits & Human Service Organizations

In many states, auto insurance coverage is mandatory by law. Before delving into the specifics of auto insurance for nonprofit and human services organizations it is critical that leadership understand the auto insurance requirements in all the states they operate in. Autoinsurance.org offers a free, updated, fact-checked resource with each state minimum auto insurance requirements. An insurance professional who operates in your state and specializes in the nonprofit and human services space will also be a valuable resource to help you better understand your state-specific requirements and ensure you are compliant. 

Each organization’s auto insurance portfolio will vary based on their needs. For example, an organization operating two to three vehicles that will only go a few miles will have much different needs than an organization operating several large passenger vans traveling multiple miles each day. 

Below is a list highlighting the basic coverages that all nonprofit and human service organization leaders who have commercial vehicles under their purview should consider: 

  • Bodily injury liability coverage helps cover another driver or their passenger’s medical expenses if an employee of the insured is at-fault. 
  • Property damage liability coverage will cover damage that an employee causes to someone else’s property. 
  • Hired and non-owned auto insurance offers liability coverage if an employee is involved in an accident with a personal, rented or leased car used for business errands. Damages to these vehicles would not be covered. 
  • Uninsured or underinsured motorist coverage helps pay for an employee’s medical expenses or damage to their car if the other driver lacks adequate liability coverage or is uninsured.
  • Personal injury protection is a no-fault auto insurance for nonprofit organizations that can help cover medical expenses, lost wages or funeral costs after an accident regardless of who is at fault.  

Beyond Auto Insurance: Further Protecting Your Fleets

In addition to insurance, there are several technology tools that can assist nonprofits and human service organizations in protecting their fleets, employees and those they serve. In some cases, these tools can also help to reduce auto insurance rates. 

Telematics, for example, can assist with risk management by monitoring driving behaviors such as speed, harsh braking, seatbelt use and more. With the data collected from telematics, leadership can address such behaviors with their employees and take corrective actions or call for additional training to ensure safety is top priority. Additionally, many nonprofits and human service organizations are opting to use dashcams, which have proven beneficial when accidents do occur by providing concrete evidence of what happened. Finally, as catalytic converter thefts continue to rise, leaders can consider purchasing cages and alarm systems for their vehicles’ catalytic convertors. Catalytic convertors are a high value item, and it takes only minutes for a thief to remove one from a vehicle. A theft of this kind can make a vehicle inoperable and cost several thousand dollars to replace. 

Keep Training

It should never be assumed that anyone operating a vehicle has completed training. Training should be ongoing throughout the driver’s employment. As mentioned above, technology tools such as telematics can provide data that indicates where a driver may require more training in specific areas. At minimum, employees should be trained at-hire, annually, when there is an accident and when there is a change to policies or vehicles. 

Commercial vehicles can be essential to many nonprofits and human services organizations’ operations. Unfortunately, there’s no telling what can happen when drivers are out on the road. To ensure the safety of employees, residents and organization finances, leaders should take the time to analyze their specific fleet needs and discuss their insurance, as well as telematic and tech options with an insurance professional who specializes in auto insurance for nonprofits and human service organizations. 

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