Nonprofits need insurance just like for-profit organizations do, but their needs are often quite different. Depending on the types of services they provide and whether or not they operate with paid staff, they may require some of the following nonprofit insurance policies.
Whether they run on volunteer or paid labor, all organizations need general liability. This type of insurance covers injuries that members of the general public sustain while on the property, and the cost of legal representation in case of lawsuits.
This policy protects your organization from the risk of accidents your volunteers or employees may cause. It covers medical bills for those injured as well as damages to other vehicles or personal property.
If your organization has paid employees, then state law most likely requires that you carry workers’ compensation insurance. If you only use volunteer labor, then volunteer accident insurance can take its place.
Property insurance covers damages to the building where your organization operates and the equipment you keep inside it. It is particularly important if you work in an area with a high crime rate.
You may not need all the policies mentioned here. Talk to your insurance agent about which nonprofit insurance policies are most appropriate for your organization.