Nonprofits are unique in our economy because they have multiple revenue streams from donations, products, services and grants. This makes them susceptible to a variety of risks that could impact the organization and its stakeholders. In order to reduce these risks, it’s important that nonprofit organizations have the proper types of insurance in place.

There are a variety of different policies available to nonprofits and the specific coverage you need depends on your particular organization. However, most nonprofits need a few key policies such as general liability and directors and officers (D&O) insurance.

General liability insurance (also known as commercial general liability) offers protection against the classic slip and fall scenarios that many businesses face. This type of policy will pay for damages that your nonprofit must pay to a third party, such as a visitor, vendor or associate who is injured on your property. It can also cover property damage that occurs during a volunteer event, rental of space or advertising injury.

Property insurance offers protection for the space your nonprofit occupies, as well as any fixtures, equipment or inventory. This policy can cover losses due to fires, storms, theft and more. Additionally, you can purchase coverage for the cost to replace property that has been destroyed or damaged beyond repair.

If your nonprofit has employees, workers’ compensation insurance is required by most states. This type of insurance covers injuries suffered by your staff or volunteers while working for the nonprofit. This type of insurance is typically included in a business owners policy bundle that will include all of the nonprofit’s primary coverage policies.

Another important coverage for nonprofits is auto insurance. Most nonprofits use vehicles, whether it be a van to transport volunteers or a truck for fundraising events. If your nonprofit owns any vehicles, you will need to get a business auto insurance policy. This policy will cover any liabilities and physical damage caused by the nonprofit’s owned vehicles.

Lastly, nonprofits are often required to host special events or fundraisers at various locations. This can include everything from donors’ homes to municipal buildings and hotels. If you are hosting an event at a location that is not your nonprofit’s primary location, it is important to get hired and non-owned auto insurance. This type of coverage will cover any vehicles that volunteers or staff members use while on the job, and it will cover them in case they are at fault for an accident.

There are many different policies that may be applicable to your nonprofit, and you will need to discuss them with a qualified insurance specialist. Having a knowledgeable expert on your side can help you avoid gaps in coverage and ensure that you are getting the most bang for your buck. To learn more about what kind of insurance your nonprofit needs, please contact us. We would be happy to answer any questions and assist you in finding the best policy for your organization. what type of insurance does a nonprofit organization need