Page 22 - 2026 Nonprofit Industry Trends

INSURANCE OUTLOOK FOR THE
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NON-PROFIT SECTOR IN 2026 RECOMMENDED RISK MANAGEMENT STRATEGIES

► Implement risk transfer procedures (contracts, indemnifications, additional insured provisions).

► Conduct regular cybersecurity audits and invest in advanced security technologies.
► Develop comprehensive disaster recovery and business continuity plans.
► Establish safety programs for property and casualty exposures.
► For larger, complex risks: Consider alternative risk financing (captive insurance, risk retention groups).

PRICING & COVERAGE EXPECTATIONS & AVAILABILITY OF COVERAGE

EXPECTED RATE
COVERAGE TYPE FACTORS DRIVING EXPECTED CHANGES
CHANGE (2026)

PROPERTY +10% TO +25% Driven by natural disaster risk and ongoing loss trends.

T he insurance marketplace for the non-profit sector is expected to experience several significant trends and changes in 2026. Here are some major trends (AVERAGE RISK)
for the Non-Profit sector:
AUTO +5% TO +25% Frequent/severe claims, medical cost inflation.
► CYBER LIABILITY INSURANCE DEMAND: Growing reliance on digital platforms is driving increased need for cyber coverage to protect against data breaches
and cyber-attacks.
► DIRECTORS & OFFICERS (D&O) INSURANCE: Heightened focus due to increased governance scrutiny and financial management regulations. GENERAL +3% TO +25% Ongoing claim trends.

► RISK MANAGEMENT EMPHASIS: Insurers may incentivize non-profits to adopt robust risk management practices, including safety programs for property, LIABILITY
casualty, and auto exposures. ABUSE &
► PREMIUM ADJUSTMENTS: Economic factors and claims history will influence rates. Proactive risk management can lead to more favorable premiums. PROFESSIONAL +15% TO +20% Legislative changes, claims reporting increases and reinsurance reductions
resulting in lower limits being offered on renewal.
► KEY CHALLENGES: Rising insurance costs increased natural disasters (climate change) and cybersecurity threats pose significant risks.
UMBRELLA +20% Massive jury awards, settlements, and reductions in reinsurance limits
One of the key issues facing the non-profit sector in 2026 will be the continued rising cost of insurance premiums. These organizations often operate on resulting in lower limits being offered on many renewals.
limited budgets, and higher premiums can strain their financial resources. Additionally, the increased frequency and severity of natural disasters due to
climate change poses a greater risk, leading to higher claims and potentially less availability of affordable coverage. Stable rates, but coverage remains crucial.
CYBER LIABILITY FLAT

Non-profit organizations will need to adopt more robust risk management strategies to navigate the complex regulatory and economic landscape. These
include strategies to offset property, casualty, and cybersecurity exposures. CONTINUED ON NEXT PAGE