4 Common Types of Insurance for Nonprofit Organizations

Running a nonprofit requires dedication to its mission, but it also demands a certain amount of business acumen. Part of that is understanding exactly what insurance coverage you need to protect the organization, its staff, and its assets. Consider these four common types of liability insurance for nonprofit organizations.

1. General Liability Coverage

Accidents can happen in even the safest places. If that happens to be on your organization’s property, you could be held liable for any damages. General liability protects your assets against these claims. In many places, businesses are legally required to carry general liability insurance.

2. Automobile Insurance

Any time your organization owns and operates vehicles, they should be covered under a commercial auto policy. You may also need additional coverage, such as a hired and non-owned auto policy if staff or volunteers operate personal vehicles for work.

3. Directors and Officers Insurance

Officers of a nonprofit organization take on a tremendous responsibility. They also open themselves up to legal claims that are filed against the company and board. D & O insurance helps protect their personal interests in this type of situation.

4. Workers Compensation

Worker’s comp is another coverage that is likely required by law. It helps cover lost wages for workers who are injured on the job and covers their medical expenses.

While these are the most common policies you will need, they are not your only options. Work with an agent who is knowledgeable about the needs and risks involved in the nonprofit sector to build the right insurance package for your organization.