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For nonprofits
Nonprofit insurance: a plain guide to what you need
Start with two policies: general liability, which covers injuries and damage during your events and activities, and directors and officers (D&O) insurance, which protects your board members if the nonprofit is sued over a decision. Add others, like workers' comp, as your risks call for them.
Why nonprofits need insurance
A nonprofit can be sued or have an accident just like any other organization. Insurance is what keeps one bad day from wiping out your funds or your board.
You may also need certain coverage because a landlord, a funder, or a grant requires it. It can come up before you expect it.
General liability insurance
General liability is the everyday coverage. It helps with claims for injury or property damage that happen through your activities.
If a volunteer or visitor is hurt at your event, or something is damaged, this is the policy that responds. Start here.
Directors and officers (D&O) insurance
Directors and officers insurance, called D&O, helps protect your board members personally if the organization is sued over a decision it made.
New boards can go without D&O and not realize it. Without it, a director's own savings could be exposed. Good board members may ask whether you carry it. To pick a limit and see what it costs, read how much D&O insurance you need.
Other types you may need
Depending on what you do, a few other policies may apply:
- Property insurance, if you own equipment or a space.
- Professional liability, if you give advice or services people rely on.
- Workers' compensation. Your state may require it once you have staff, and the headcount that triggers it varies. Check with your state's workers' compensation office.
- Auto insurance, if anyone drives for the organization.
- Event or cyber coverage, for specific risks like a big fundraiser or storing donor data.
You do not need all of these on day one. Match your coverage to the risks you actually have.
What it costs and how to start
Insureon says its small nonprofit customers pay an average of $67 a month for D&O. General liability is priced on its own, and both depend on what you do, your size and your state, so get a quote for each.
Start by talking to a broker who works with nonprofits, or to a nonprofit-only insurer such as the Nonprofits Insurance Alliance. Describe what you do, and let them help you right-size your coverage.
Questions to ask before you buy
A short list keeps the conversation clear:
- What does this policy cover, and what does it leave out?
- Does our D&O cover volunteers and staff, not just directors?
- What is the deductible, and what is the limit?
- Will this satisfy what our landlord or funders require?
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General information, not insurance, legal or financial advice. Coverage and prices vary by state and insurer; confirm with a broker who works with nonprofits.
Sources: councilofnonprofits.org · insurancefornonprofits.org · boardeffect.com · insureon.com · dol.gov. Verified August 2026; the Insureon figure, the Nonprofits Insurance Alliance and the workers' compensation link checked September 2026; the National Council of Nonprofits link updated October 2026.