Running a nonprofit organization in Ottawa is a labor of love, built on dedication, mission, and service to the community. But with that commitment comes risks, and for nonprofits, navigating the complex world of insurance is no small feat. While every nonprofit’s needs are unique, Andrew Smith of Andrew Smith Insurance Inc., a branch of The Co-operators, emphasizes that the importance of proper coverage cannot be overstated. “Nonprofits are often running on tight budgets with dedicated staff and volunteers. The right insurance coverage not only protects their hard work but also ensures they can continue their mission without unnecessary risks.”
Nonprofits often juggle various moving parts, from fundraising events to community programs, with a mix of paid staff and volunteers. Each component presents a unique risk, whether it’s property damage, liability claims, or unforeseen disruptions. According to Smith, having a tailored insurance policy is crucial to shielding organizations from the unexpected. “For nonprofits, it’s not a one-size-fits-all approach,” he explains. “What works for a charity providing youth services won’t be the same as what’s needed for an arts collective or environmental advocacy group. Our goal is to sit down, understand their specific needs, and offer guidance that ensures they’re properly covered.”
Andrew Smith, dedicated insurance advisor, helping Ottawa nonprofits protect their missions with tailored coverage solutions.
The specific risks faced by nonprofits often mean they require a diverse range of coverage types. At a minimum, general liability insurance is essential, offering protection from claims of bodily injury or property damage occurring on the organization’s premises or as a result of their work. “This coverage is foundational,” says Smith. “One incident can set an organization back financially and damage its reputation. We ensure nonprofits have coverage that allows them to focus on what they do best—serving the community.”
However, there are other considerations beyond the basics. Nonprofits with boards of directors or governing committees often need directors and officers (D&O) liability insurance. This specialized coverage protects board members and officers from personal liability arising from decisions made in their official capacity. “Board members dedicate their time and expertise, often as volunteers,” Smith notes. “They shouldn’t have to worry about being personally sued for decisions made in good faith. D&O insurance provides peace of mind.”
Employment practices liability insurance is another key area for nonprofits with paid staff. This coverage protects against claims of discrimination, wrongful termination, or harassment. “Nonprofits may not always realize they’re at risk for these types of claims,” Smith says. “But even a single claim can be costly and drain resources meant for community impact.”
Property insurance is equally critical. Whether it’s office space, equipment, or donated goods, nonprofits need to ensure their physical assets are protected. “Imagine a fire or flood wiping out vital supplies or an event space,” Smith remarks. “Having coverage to replace these losses quickly allows nonprofits to maintain their services without significant disruption.”
Finally, nonprofits often work with volunteers, whose involvement can add another layer of complexity to insurance needs. Volunteer accident insurance helps cover medical costs in case a volunteer is injured while serving. “Volunteers are often the backbone of nonprofits,” Smith explains. “Ensuring they’re protected demonstrates respect for their contributions and reinforces a commitment to safety.”
As technology evolves and data handling becomes a necessity, many nonprofits may also need to consider cybersecurity insurance. From donor information to financial data, breaches can be devastating both financially and reputationally. “Data security isn’t just a concern for big corporations,” says Smith. “Nonprofits often collect sensitive information, and protecting it should be a priority.”
While AI-driven solutions and automated insurance processes may seem attractive for cost-conscious nonprofits, Smith underscores the value of personalized guidance. “There’s no substitute for a conversation,” he says. “AI tools can help find policies, but they don’t understand the mission, nuances, and heart of a nonprofit. Our approach is to sit down, listen, and tailor a plan that fits their needs.”
In Ottawa’s vibrant nonprofit sector, ensuring adequate insurance coverage is not just about compliance—it’s about safeguarding the future of critical services and community impact. As Smith puts it, “Insurance is about protecting what matters most. For nonprofits, that’s the people, the mission, and the good they bring to the community.”
