If you’re a nonprofit leader, you may have recently experienced sticker shock at renewal time — even if your organization hasn’t filed a claim in years.
You’re not alone. Across the country, nonprofits of all sizes are seeing higher premiums, tighter underwriting, and fewer carrier options. This shift is what the industry calls a “hard market” — and right now, we’re in one of the hardest markets in recent history.
In this post, we’ll break down what’s happening, why it’s happening, and how it specifically impacts nonprofits — including those in high-risk categories like animal shelters and social services.
In simple terms, a hard market is when:
Insurance premiums go up across most policy types
Carriers get more selective about who they insure
Coverage terms can get tighter, and fewer carriers are willing to quote
This shift doesn’t just affect organizations with recent claims — even clean accounts can see increases.
Several factors are driving the current hard market:
Rising costs to repair buildings, replace equipment, settle claims, and inflation
“Nuclear” jury verdicts — extremely large legal settlements, especially in cases involving vulnerable populations
Higher claim frequency in certain sectors, especially nonprofits
Reinsurance costs — carriers themselves buy insurance, and those costs have jumped significantly in the past two years. Reinsurers are often dictating increases
Nonprofits operate in a unique environment:
Many work with animals, children, or vulnerable individuals, where claim severity can be high
Grant and contract requirements often demand specific coverages, limits, and/or excess liability. Because of this, coverages can't simply be removed or reduced to save money.
Lean budgets make even modest increases harder to absorb.
These two sectors are among the hardest hit right now:
Animal Shelters
Liability from bites and scratches
Volunteer injuries without formal safety training
Property risks from older facilities and specialized equipment
Social Services
Abuse & molestation coverage costs are climbing sharply
Auto liability for transporting clients
Professional liability for social workers becomes an issue to be considered.
One of the advantages we bring to our nonprofit clients is our relationship with Nonprofits Insurance Alliance (NIA) — a 501(c)(3) insurance carrier that exclusively insures 501(c)(3) organizations.
Here’s why that matters:
No shareholders to answer to — Unlike most carriers, NIA doesn’t have to prioritize investor returns.
Profits go back into the business — This helps keep rates as low as possible for members.
Mission-driven — NIA focuses solely on nonprofits, providing coverage that understands and addresses the unique risks you face.
This year, for the first time in over a decade, NIA has implemented rate increases. The change is driven not only by inflation and reinsurance costs but also by the need to keep pace with market realities. While other carriers are spending millions on TV ads and mascots, NIA is quietly providing quality coverage to a sector that’s often overlooked in the commercial market.
Our hope is that these increases will remain steady for the next 10 years, so nonprofits can budget confidently and focus on their missions.
The good news? While market conditions are tough, there are ways to navigate them effectively:
Document your safety and risk management practices — carriers reward organizations that can show they’re proactive
Review coverages annually — to ensure they still match your operations and contract requirements
For over 20 years, our agency has specialized in protecting nonprofits across Ohio.
We understand the unique challenges you face, and we have the carrier relationships, niche expertise, and proactive approach to help you weather this hard market.
If you’re facing an upcoming renewal — or just want to better understand your options — we’re here to help.