While nonprofits operate differently than other organizations, there are still a lot of rules that should be followed. There’s a lot that can go wrong while running a nonprofit, as well as potential issues involving the volunteers that are working underneath it. It’s important to make sure that any nonprofit organization is insured as soon as possible.

A lot of nonprofits may seek to operate without too much insurance because of costs. These organizations are, of course, trying to put as much of the money they make into those they’re supporting, but insurance is very important if you’re going to maintain that income.

Nonprofit insurance isn’t just to protect those that are running the nonprofit organization, but to protect those working for it, as well as those who are relying on the organization’s operations. Keep on reading to learn more about why your nonprofit needs insurance.

Injury Risks

A lot of nonprofits are set up with the aim to help those who are in need following a disaster, which typically involves having volunteers go out to help on location. It’s an important role that needs to be done, but sometimes taking physical action like this can be very dangerous, and if you’re not insured to protect volunteers, it could put a serious strain on your organization.

It’s not just volunteers that could face an injury from these efforts, but the individuals who the nonprofit has set out to help may be injured in the process because of accidents and mistakes.

Commercial Damage

A lot of nonprofits need a property from which to operate. If your property was damaged for whatever reason, you’ll want to make sure you can do something about it as soon as possible. The longer your property is no longer accessible, the longer the charity you set out to help is not gaining support. Commercial property insurance is there to make sure you don’t have to spend a ton out of nowhere in order to get back what you’ve lost.


A board of directors typically runs larger nonprofit organizations. However, this puts the organization at risk of more mistakes and malpractice. When money is lost in significant sums because of poor decisions, your nonprofit can be left vulnerable. Having liability insurance can protect you from such a scenario.

You may also look into professional liability insurance as well, to make sure that mistakes made within the workplace are covered. You don’t want a simple mistake, such as forgetting information, to put a stop to what you’re doing as a nonprofit. Liability coverage can make sure that simple mistakes no longer pose a threat to you.


If your nonprofit organization is typically on the move to take action in a different location, auto insurance is something that you should absolutely have. The insurance protects an organization from severe costs following property or auto damage involving a vehicle owned by the nonprofit.

Digital Security

If you’re often signing up volunteers or collecting donations, chances are you have a lot of personal information from these individuals. Not only that, but payment information can be very troublesome if it got into the wrong hands. You don’t want a hacker being able to easily get their hands on such information, as it could lead to lawsuits and damage to your reputation.

Data protection is important for any business or individual who is collecting private information through transactions, and it can easily be breached from the inside, too. Make sure that any kind of private information is kept under lock and key, and that you’re insured with cyber liability insurance for cases when information is stolen.

Nonprofit Lawsuits Are More Common Than You Think

If you think your organization is safe from legal action because of your cause and purpose, then you would be wrong. Having insurance will prevent your organization from having to front all the costs when something unexpected occurs. Contact us to learn more about insurance for nonprofits.