Nonprofit Insurance Program

Key Insurance For Nonprofit Organizations

By Alexa Connelly
June 02, 2013

Nonprofit organizations play an important role in society. Although most nonprofits operate on a shoe string, charitable organizations do need to consider adequate insurance. Below is a list of types of insurance for nonprofit organizations.


Liability Insurance

Liability insurance cover insures your organization for personal accident type scenarios like slipping and falling over. The policy holder will be covered for damages that the courts order the organization to pay for injuries on the charity’s property. However, this type of policy does not apply to the nonprofit employees, who should be covered by separate insurance.


Property Insurance

It doesn’t matter if you own or rent a property you should have property insurance to cover the premises in the event of disasters like flood, fire, or criminal damage. If the property is owned by the organization it will need to insure the building and contents, if rented you’ll need to insure the contents only.


Running a nonprofit from home

It is probable you may need to adjust your current insurance to take into account you’re running a nonprofit organization from your home. If you do nothing, you current insurance may be invalidated when you come to make a claim.


Auto Insurance for nonprofit organizations

If you or your staff uses a vehicle for nonprofit activities you’ll need liability insurance. This may be required by law depending on which State you’re in. The cover pays for injuries a vehicle causes to people or property while on organization’s business.


Product Liability Insurance for nonprofit organizations

If your nonprofit sells products to the public, consider getting product liability insurance. Cover will protect you and your organization from lawsuits by customers should they have complaint about an item sold to them.


Directors and Officers Insurance

Your board of directors and officers could be subject to litigation should your organization be involved/accused of inappropriate activities. D and O cover will protect board members and officers assets from any legal proceedings. Your board of directors may insist you have this type of cover before considering joining you organization.


Professional Liability Insurance

Sometimes referred to as errors and omissions insurance, this protects against liabilities resulting from mismanagement. It covers directors and officers, staff, volunteers, and the nonprofit organization.


Employees Insurance

If your organization has employees, you’ll need additional insurance by law. Please check with you insurance advisor or broker for details about insurance required for your State.

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