Underwriting Guide
What Underwriters Ask About Nonprofits
Nonprofit organizations face a combination of GL exposure from programs and events, Directors & Officers liability from board governance decisions, and employment practices liability from complex volunteer and employee relationships. Underwriters evaluate the nature of programs offered, the population served, and board governance quality.
General LiabilityDirectors & OfficersEmployment Practices LiabilityWorkers' CompensationCommercial Property
Organization & Programs
What is the nonprofit's mission and primary programs?
Why they ask: Programs define the GL exposure. Nonprofits serving vulnerable populations (youth, elderly, disabled) face significantly higher liability risk.
Does the nonprofit work with minors? If so, describe the programs and supervision protocols.
Why they ask: Youth-serving nonprofits face severe liability from abuse and molestation claims. Carriers require detailed supervision and screening protocols.
Does the nonprofit transport clients or participants?
Why they ask: Client transportation creates commercial auto exposure. Volunteer drivers using personal vehicles also create hired/non-owned auto exposure.
Does the nonprofit operate residential facilities or overnight programs?
Why they ask: Overnight programs significantly increase both GL and abuse/molestation exposure.
Governance & Leadership
How many board members serve? Are they compensated?
Why they ask: D&O premium is based on the size and complexity of governance. Paid board members have different exposure than volunteers.
Has the organization had any IRS compliance issues, Form 990 late filings, or loss of tax-exempt status?
Why they ask: Regulatory issues indicate governance problems that predict D&O claims.
Has the board made any significant decisions in the past 3 years involving major contracts, mergers, or leadership changes?
Why they ask: D&O claims often arise from major governance decisions. Underwriters want to know about potential pending disputes.
Employees & Volunteers
How many paid employees and volunteers does the organization have?
Why they ask: WC covers paid employees but generally not volunteers. EPLI exposure exists for both employment relationships and volunteer supervision.
Does the organization conduct background checks on employees and volunteers who work with vulnerable populations?
Why they ask: Background checks are a critical risk control for youth-serving and care-providing nonprofits. Their absence can affect coverage eligibility.
Provide 5 years of GL, D&O, and EPLI loss runs.
Why they ask: Nonprofits with prior abuse claims, discrimination suits, or governance disputes face limited markets and significant premium impact.
Answers that raise red flags
⚠Youth-serving programs without documented abuse prevention policies and background check procedures
⚠Overnight programs or residential facilities without appropriate limits
⚠Prior abuse or molestation claims — even settled or dismissed
⚠IRS compliance issues or Form 990 late filings
⚠No background checks for volunteers working with vulnerable populations
⚠EPLI claims within the past 3 years
Tips for presenting this risk favorably
✓Provide abuse prevention policy documentation, including background check procedures and volunteer screening
✓Include board member list with occupations — diverse professional backgrounds signal governance quality
✓Document any changes in leadership and explain the circumstances
✓If serving youth, obtain sexual abuse and molestation (SAM) coverage — it's often excluded from standard GL
✓Confirm whether D&O covers employment practices or whether a separate EPLI policy is needed
Collect all this information automatically
AgencyAssist sends your client a plain-English intake link and maps every answer to the correct ACORD fields — including all the questions above.