Why Does a Non-Profit Need Insurance?
Running a non-profit means serving people, managing programs, and stewarding donor funds, often with lean staff and a lot of public-facing activity. That combination creates real-world risk. A single injury at an event, a misunderstanding with a vendor, or a damaged facility can pull time and money away from your mission. Insurance helps keep one incident from becoming a budget crisis. It also supports credibility. Many grants, landlord agreements, and partnership contracts require specific coverages and limits before you can move forward. The right policy set makes it easier to say yes to opportunities without taking on avoidable exposure.
What Does Non-Profit Insurance Cover?
Non-profit insurance is usually a package of coverages that address the way your organization operates day to day. It can protect you if a third party claims injury or property damage connected to your programs, events, or premises. It can also help repair or replace business property like office contents, computers, and donated equipment after a covered loss. Depending on your setup, it can extend to incidents involving volunteers, off-site activities, rented spaces, and special events. If you have employees, workers’ compensation is typically required in California. Many non-profits also consider protection for leadership decisions and financial allegations, especially when handling grants, donations, and community services.
Injury at a fundraiser or community event
Property damage tied to a program site
A dispute over services or decisions
Essential Insurance Coverages for Non-Profits
General Liability
General liability helps protect your non-profit when someone outside your organization claims bodily injury or property damage connected to your operations. This is commonly triggered by visitors at your office, participants at events, or incidents that happen during program activities in the community.
Business Owner's Policy
A BOP typically combines general liability with property coverage in one policy. For non-profits, it can be a practical way to cover your space and the things that keep your mission moving, like office equipment, signage, storage, and certain donated items, while also addressing common liability exposures.
Workers' Compensation
If you have employees in California, workers’ compensation is generally required. It helps cover medical costs and lost wages if a team member is injured or becomes ill due to work, whether they are in the office, at a program site, or traveling locally for organizational duties.
Non-Profit Insurance Made Simple
Everything you need to know about protecting your business, from coverage basics to real-world scenarios.
