What Types of Insurance Do Nonprofits Need
If you are starting your own nonprofit you’ve probably asked yourself “Do I need insurance, and if so what type do I need?” Having insurance for your nonprofit is strongly encouraged but the type of policy you get is up to you. There are 5 main types of insurance for nonprofits that may be beneficial for your organization.
Event Insurance
The first main type of insurance is event insurance. If you’re hosting a big event, such as a conference, a fundraiser, a convention, or any type of gathering where a lot of people will be in attendance, you may want to consider event insurance. Essentially, for about $100, you can get insurance in case something happens at the event, such as property damage, an injury, or you need to cancel the event.
General Liability Insurance
One of the most common types of insurance for nonprofits is a general liability policy. This type of policy covers your organization for the most common reasons your nonprofit could be sued. It’s a good policy to have in case of a lawsuit. Typically, you can get general liability insurance for under $100 per month, depending on the size of the nonprofit and what types of things you are doing.
Directors and Officers Insurance
Directors and Officers Insurance protects your board and the officers of your organization from lawsuits based on decisions your organization makes. It protects the individuals in your organization from personal losses if they are sued. It can also cover any legal fees or other losses your nonprofit may incur as a result of the suit.
Workers’ Compensation Insurance
Depending on your state, workers’ compensation insurance is coverage that your nonprofit would need if you’re hiring employees and you have people working for you. This type of insurance can protect your workers and your organization in the event of an injury. It covers things like missed wages and medical expenses if your employee is injured on the job.
Property Insurance
Property insurance is extremely important if your nonprofit owns a building. This type of insurance protects against damage, theft, fire, etc., and reimburses you for the damage that was caused.
If you are not able to get all five types of insurance, General Liability Insurance is your best bet for covering the most likely issues that your nonprofit may face. This is a general guide to types of insurance you may need, but you should consult with your local insurance advisor for specific advice and information to make the best decisions for your particular needs.
If you are thinking of starting a nonprofit, or if you already have one but need help moving the process forward, we would love to help you. Contact Chisholm Law Firm today for your complimentary consultation.