SAM Insurance

SAM Insurance for Nonprofits: What It Is, Why You Need It, and How to Get Covered in Washington State

If your nonprofit has recently been asked to carry “SAM coverage” as part of a contract, you’re not alone. We’ve seen a surge in organizations across Washington State being required to carry $1 million or $2 million limits to meet state and grant requirements.

So what exactly is SAM insurance—and how do you make sure your organization is properly protected?

Let’s break it down.

What Is SAM Insurance?

“SAM coverage” typically refers to Sexual Abuse and Molestation (SAM) Liability Insurance. This coverage is designed to protect nonprofits and organizations against claims involving allegations of abuse or misconduct.

Even with strong policies and screening procedures in place, organizations that work with vulnerable populations—such as children, seniors, or individuals with disabilities—face increased exposure. SAM coverage helps protect your organization financially if a claim arises.

Why Are Nonprofits Being Required to Carry SAM Coverage?

Many government agencies, school districts, and grant providers now require SAM coverage as part of their contracts. This is especially common for nonprofits involved in:

• Youth programs
• After-school care
• Mentorship or counseling services
• Shelters or housing assistance
• Community outreach programs

In Washington State, it’s increasingly standard to see required limits of:

• $1,000,000 per occurrence, or
• $2,000,000 aggregate

These requirements are put in place to ensure that organizations have the financial backing to handle serious allegations, should they occur.

What Does SAM Insurance Cover?

SAM coverage can help with:

• Legal defense costs
• Settlements or judgments
• Investigation expenses
• Crisis management (in some policies)

It’s important to note that coverage is typically designed to protect the organization itself, and sometimes its employees and volunteers, depending on how the policy is structured.

Does General Liability Include SAM Coverage?

This is one of the most common questions we get.

Short answer: Not always.

Some General Liability policies include limited SAM coverage, but many:

• Exclude it entirely, or
• Offer very low sublimits that may not meet contract requirements

That’s why many nonprofits need to either:

• Add an endorsement, or
• Purchase a separate standalone SAM policy

How Much SAM Coverage Does Your Nonprofit Need?

The right limit depends on your contracts and operations, but most organizations we work with need:

• $1M / $2M limits to satisfy basic requirements
• Higher limits if working with multiple agencies or larger programs

We always recommend reviewing your contracts carefully to ensure compliance—missing this requirement can delay funding or prevent you from moving forward with a project.

How to Get SAM Coverage for Your Nonprofit

Getting coverage doesn’t have to be complicated—but it does require the right information upfront.

Most carriers will ask about:

• Your services and programs
• Whether you work with minors or vulnerable populations
• Staff and volunteer screening processes
• Abuse prevention training and policies

Having strong internal procedures can not only help protect your organization—but may also help with pricing and eligibility.

Why Work With a Specialized Insurance Agency?

SAM coverage isn’t one-size-fits-all. Working with an agency that understands nonprofit risks can make a big difference in:

• Meeting contract requirements correctly
• Avoiding coverage gaps
• Getting competitive pricing
• Navigating underwriting questions

At Alliance West Insurance, we regularly help nonprofits across Washington secure SAM coverage that aligns with their mission and contracts.

Need Help Getting SAM Coverage?

If your nonprofit needs $1M or $2M SAM coverage to meet a contract requirement, we’re here to help make the process simple and stress-free.

Reach out to our team today for a quick review and quote—we’ll help you understand your options and get compliant fast.