Do Nonprofits Need Liability Insurance?

General liability coverage is a staple of commercial insurance because it takes care of the most common day to day issues faced by most companies. While there are industry-specific forms that specialize it a bit, all general policies cover basic needs when it comes to a company’s public liability, product coverage, visitors onsite, and other basic liability exposures encountered daily. So do nonprofits need this coverage? That depends.

Do You Have Employees?

If your nonprofit has no employees or on-site volunteers and exists mostly to facilitate funding from donations, you might be in a position to avoid buying nonprofit general liability. As soon as your organization needs paid staff, a site for operations and interfacing with the public, or even short-term event rental space, you need insurance protection. That’s because those events open you up to financial liability if people are hurt or property is damaged in the course of your nonprofit’s activities.

Protecting Volunteers

Even if you don’t have paid staff, general liability coverage takes care of your volunteers in the event of an accident damaging their property or an injury while working for your organization. This protection is essential not only for your nonprofit’s financial well-being, but for the protection of the people you depend on to make a difference. Larger organizations may want to consider extended liability coverage in one or more areas, in addition to a robust general policy. Ask an agent for details.