You are organizing a garage. The client pointed to the left side and said, “Donate all this.” You efficiently load 20 boxes into your van and drop them at Goodwill. That night, the client calls: “Where is the box marked ‘Grandma’? It was on the left, but I meant to keep it!” You race back to Goodwill, but it’s gone. The box contained vintage photos and jewelry worth “priceless” amounts.
Key Takeaways
- Sentimental Value is Uninsurable: Insurance pays “Actual Cash Value.” It pays
0for"sentimentalvalue."Photosareworththepapertheyareprintedon(0for"sentimentalvalue."Photosareworththepapertheyareprintedon(0.10). - Errors & Omissions (E&O): General Liability covers property damage. E&O covers negligence in professional services (like organizing errors). You need E&O for this claim.
- The “Receipt” Defense: If you didn’t get an itemized receipt from the donation center or take photos of the contents, you have no proof of what was lost.
- Contract Clauses: Your contract must limit liability for “contents of containers not inspected by the client.”
The “Why” (The Trap): The Definition of “Property Damage”
General Liability pays for “Physical injury to tangible property.”
Did you physically injure the box? No. You donated it. The box is fine; it’s just gone. This is a “Wrongful Act” in the performance of your duties. This is a classic E&O claim. Without Professional Liability insurance, you have no coverage for the “mistake” of donating the wrong thing.
The Investigation: Organizers Insurance
I compared policies specifically for NAPO (National Association of Productivity & Organizing Professionals) members vs. generic policies.
1. Westminster / NAPO Insurance
- My Analysis: The industry standard.
- Coverage: Their Professional Liability specifically covers “claims arising from the disposal of property.”
- Limit: $1M.
2. State Farm (Business)
- My Analysis: A generic business policy.
- The Risk: The agent might not understand what an organizer does. They might classify you as a “Consultant” and exclude any physical handling of goods.
3. Tech Solutions
- My Analysis: In 2026, using an inventory app (like Sortly) to photograph every donation pile before it leaves the house is your best defense.
Comparison Table: Lost Items Coverage
| Policy Type | Covers Dropped Box? | Covers Wrongly Donated Box? |
| General Liability | Yes (Physical Damage) | No (It’s a mistake, not damage) |
| Professional Liability (E&O) | No | Yes (Negligence) |
| Bailee Floater | Yes | Maybe (Loss of possession) |
[IMAGE: Photo of a ‘Donation Approval’ sign-off sheet on a tablet]
Step-by-Step Action Plan
- The “Client Review” Step: Never drive away with donations until the client has visually inspected the back of the van. Have them sign a “Removal Approval” form.
- Buy E&O Insurance: If you are an organizer without E&O, you are exposed. It costs ~$350/year.
- Define “Value”: In your contract, cap liability for lost items at $100 per box unless contents are itemized.
- Goodwill Relationships: Know the manager at your drop-off center. Sometimes they can set aside a mistake if you call within 1 hour.
FAQ Section
Can they sue me for emotional distress over the photos?
Yes. E&O helps defend against this. GL does not.
What if I sold it on eBay instead of donating?
That changes things. If you kept the money, that’s theft/conversion. If you sold it for the client, it’s an E&O error.
Does this apply to digital files I accidentally delete?
Yes, deleting files is the digital equivalent. You need “Cyber Liability” or E&O for that.