What Insurance Should a Nonprofit Have?

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If you are wondering what types of insurance coverage your non-profit should consider, the answer can vary. Every nonprofit has a unique mission, and equally unique goals and challenges that come with that. Often, nonprofits work with vulnerable populations, such as children or the elderly, that come with additional considerations. That being said, there are some coverages more common than others that fit a variety of different nonprofit models.  

 Directors and Officers

If one of your officers or board members was named in a lawsuit alleging financial mismanagement, what would your organization do? The expense of defending the directors and officers in a case such as this can be covered with directors and officers insurance.

General Liability

General liability insurance can cover your organization from property damage claims, as well as providing coverage for libel and copyright infringement. It is also a typical requirement for property leases or hosting events.

Commercial Auto

If vehicles are a part of your nonprofit organization, then commercial auto coverage is essential to keep you covered on the road. Cross provides coverage for many types of vehicles used for commercial purposes.

Hired and Non-Owned Auto

Depending on your organization’s mission, you may have volunteers or employees that use their personal vehicles to make deliveries, pick up supplies, or visit other locations. If your volunteer is in a traffic accident while conducting operations for your organization, non-owned auto coverage can help pay for damages to the other person’s vehicle if the costs exceed the volunteer’s personal auto coverage limits.

Cyber Liability Insurance

Think for a moment about all of the sensitive data your organization stores- from donor information, to employee data. Cyber liability insurance covers expenses associated with data breaches. If you process donations on your website, have a list of newsletter subscribers, or collect event registrations online, you should make a plan to implement cyber liability insurance.

Workers’ Compensation Insurance

If you hire employees, Workers’ Compensation may be a state requirement. It can help cover medical bills for employees that are injured or become ill because of work related events. It can also help cover a portion of lost wages.


To see what coverages your nonprofit should consider and compare rates, connect with your local office.