What Insurance Coverage Do Nonprofits Need?

Running an organization for nonprofits involves unique challenges and responsibilities. While a nonprofit’s mission is often focused on community service or advocacy, it’s equally important to ensure that the organization is protected against potential risks.

Proper insurance coverage can help safeguard your nonprofit’s assets, operations and reputation.

Here’s a breakdown of essential coverage options for nonprofits.

General Liability Insurance for Nonprofits

This coverage may help protect your organization from claims related to third-party bodily injury, property damage or personal injury. Whether someone is injured at an event or property damage occurs, general liability insurance may help cover legal fees and compensation costs.

Property Insurance for Nonprofits

Nonprofits often own or rent buildings, equipment and other valuable assets. Property insurance may help cover the costs of repairs or replacements if these items are damaged or destroyed by events like fire, theft or vandalism.

Professional Liability Insurance

Also known as errors and omissions insurance, this coverage is crucial for nonprofits that offer professional services or advice. It may help protect against claims of negligence or inadequate service that could result in financial loss or damage to the organization’s reputation.

Directors and Officers (D&O) Liability Insurance

D&O insurance may help protect nonprofit board members and officers. It is designed to help cover legal fees and damages arising from decisions made by these individuals in their capacity as leaders, protecting them from personal liability.

Workers’ Compensation Insurance

If your nonprofit has employees, workers’ compensation insurance is typically required. It may provide benefits for employees injured or become ill due to work-related activities, helping cover medical expenses, rehabilitation and lost wages.

Contact Us

Ensuring that your organization is adequately covered helps protect its assets, staff, volunteers and the people it serves. Contact Leicht Insurance in Logansport, Indiana, to get insurance coverage tailored to meet the needs of your nonprofit organization.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.