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January 5, 2023

Who Needs Insurance in Your Non-Profit

Non-profits may not have a lot of money to spare in case they face any damages or liability claims. One way a non-profit can protect its reserve assets is through proper non-profit insurance. Non-profit insurance usually can protect products the organization produces, its business assets, and people associated with the cause. 

It is a non-profits organizers, donors and beneficiaries who keep the organization running. That’s why you must take these people into account when buying insurance coverage for your business.  

Making sure that the people associated with the organization have appropriate insurance protections can help the non-profit sustain its operations. 


Your rank and file employees need various types of insurance. Perhaps the most common type is workers’ compensation insurance. If an employee gets hurt or sick on the job, you might be able to use this insurance to compensate that employee. Since most states require some form of workers’ compensation, this insurance can help you afford to pay employees without surrendering your reserve funds. 

Most non-profits also offer their employees health, dental and vision insurance. Additionally, some non-profits might offer life insurance plans or other types of financial benefits. In some cases, non-profits may be able to qualify for lower insurance rates than some other businesses. That way, you can still afford to offer a quality benefits plan to your employees. a group of people sitting at a table with a laptop

Executives and Directors 

A network of directors and board members usually oversee much of a non-profits operations. They make a lot of decisions. These governing individuals may sometimes make mistakes, or promote practices that compromise the organization’s stability. 

Directors and Officers Coverage (D&O Insurance) can help a non-profit recoup in case of mistakes on the part of high officials. This might cover lost income, or legal costs related to certain claims against business practices. 


Even though many non-profit volunteers don’t receive payment, they still often have to have protection. A volunteer could get hurt while in the establishment, or even make a mistake that causes a bigger problem. Most non-profits need to carry liability insurance that protects both employee and volunteer actions. 

Before buying non-profit insurance, make sure it covers the safety of volunteers. Also ensure that your business can protect itself in case a volunteer makes a mistake. 

In addition to non-profit influencers, you should never forget to consider any risks that may affect your donors or beneficiaries. For example, a cyber insurance policy can help you protect donors in case a data breach threatens their financial security. Proper liability coverage can help you assist any beneficiaries who use your free legal services or food pantry. 

Always do your best to protect all of those associated with your non-profit. Commercial Coverage, Inc. can help you get a fast, free non-profit insurance quote. Give us a call at 518-602-2020 for more information.  

Tags: business, commercial, coverage, insurance, non-profit

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