Do Nonprofits Need Special Insurance?

Nonprofits Insurance

Navigating the requirements and restrictions within the nonprofit world can be confusing. However, finding the right insurance for your organization should not be. Research into insurance for nonprofit organizations shows that every nonprofit should have, at minimum, two main types of coverage.

Liability Insurance

Liability insurance is a necessity for any type of business. It protects you against claims if someone is injured on company property or as are result of your product or services. Nonprofits may want to consider adding additional protections to their standard general liability policy. Some of the most common options include liability protection for:

  • Improper conduct or actions of board officers and directors
  • Injuries to or caused by volunteers during the normal scope of their duties
  • Dishonesty or fraudulent activity of volunteers
  • Improper professional conduct of employees or officers
  • Unfair or illegal employment practices

Property Coverage

Any property you own should be fully insured against damages. That includes office space, furnishing and any facilities. Commonly covered events include fire, theft and vandalism. Many policies exclude damages caused by flooding or earthquakes, so be sure to check those provisions.

Because your organization may need additional coverage for things like company-owned vehicles or worker’s compensation, it is always advisable to work with an agent experienced in insuring nonprofit entities.