Nonprofit Sector Growth Underscores Need for Specialized Insurance

The American nonprofit sector has grown an astounding 33% over the past 15 years — faster than any other segment in the economy. Although the private for-profit sector continues to employ the largest number of individuals across the country, the nonprofit sector holds the number two spot — ahead of federal, local, and state governments. 

In a recent article, The Washington Post reported how and where the nonprofit space has grown within the last decade and a half. Here are a few notable takeaways:

• The Northeast boasts a high concentration of nonprofit organizations. Washington D.C. attributes nearly 20% of their employment to nonprofits. Vermont, Maine, and Massachusetts follow behind D.C. as states with a significant share of their employment in nonprofit jobs.
• Nonprofit employees are twice as likely to be women than men. In addition, the wage gap between men and women is much smaller in the nonprofit space, with women making about 88% as much per hour as their male counterparts (vs. 80% in the for-profit sector).
• Nonprofit employees tend to be educated and older, compared to other sectors. Of those in the nonprofit space, 34% have at least some college education, with 16% holding advanced degrees.
• The nonprofit sector is dominated by medical organizations. One in three nonprofit jobs is in healthcare. Hospitals claim the largest number of nonprofit employees (2.5 million) in any industry.

Read the full article for more stats and details.

Importance of Securing Specialized Nonprofit Insurance

In many ways, nonprofits are like other businesses — they generate revenue, hire employees for various business functions (like marketing, HR, and accounting), and own assets (such as equipment, buildings, and real estate). It’s easy to assume that typical business insurance is sufficient to cover nonprofit organizations’ risks and potential liabilities, but that’s not necessarily the case. 

Unlike other businesses, nonprofits face a unique set of risks and exposures that require different types of insurance tailored to their business models and needs. Depending on the type of work a nonprofit does or the communities they serve, they may face any number of challenges — theft, fraud, funds misappropriation, a heightened risk of bodily harm or property damage, and more. As the nonprofit sector continues to grow, it’s important that nonprofit organizations are covered by insurance programs specifically designed with their individual needs in mind. 

MiniCo has nearly 50 years of experience working with nonprofits. We provide customizable solutions to address your nonprofit clients’ risks and exposures no matter the nonprofit organization’s size, location, or scope of service – including startups. Coverage includes general liability, professional liability, cyber, workers’ compensation, and more. Visit MiniCo’s Nonprofit and Social Services program page for more details and information on how to get a quote.