A nonprofit organization typically needs several types of insurance to protect itself, its board, employees, volunteers, and assets from various risks. Key insurance types for nonprofits include:

• General Liability Insurance: Covers claims of bodily injury, property damage, and related legal costs occurring during nonprofit operations, such as injuries at events or on premises. It is considered essential for all nonprofits

• Property Insurance: Protects buildings, equipment, inventory, and other physical assets owned or rented by the nonprofit against risks like fire, theft, or natural disasters

• Directors and Officers (D &O) Insurance: Protects board members and officers from personal financial liability arising from decisions or actions taken in their official capacity. It also covers legal defense costs for claims like mismanagement or fiduciary breaches

• Employment Practices Liability Insurance (EPLI): Covers claims related to employment issues such as harassment, discrimination, or wrongful termination, often included within D&O policies

• Professional Liability Insurance: Also known as errors and omissions insurance, it protects the nonprofit and its staff or volunteers against claims of negligence or mistakes in professional services provided

• Commercial Auto Insurance: Needed if the nonprofit owns vehicles or if volunteers/employees use personal vehicles for nonprofit activities, covering liability and physical damage

• Cyber Liability Insurance: Protects against data breaches and cyberattacks, especially if the nonprofit handles sensitive personal information

• Workers’ Compensation Insurance: Covers medical expenses and lost wages for employees injured on the job; requirements vary by state

• Business Income Insurance: Helps replace lost income if the nonprofit cannot operate due to covered property damage

• Product Liability Insurance: Relevant for nonprofits that sell products, protecting against claims related to product defects or injuries

Many nonprofits start with a Business Owner’s Policy (BOP), which bundles general liability, property, and business income insurance for comprehensive basic coverage

. Selecting the right insurance depends on the nonprofit’s size, activities, assets, and risk profile. Consulting with insurance experts familiar with nonprofit needs is recommended to tailor coverage appropriately

. In summary, essential insurance types for nonprofits include general liability, property, directors and officers liability, employment practices liability, professional liability, commercial auto, cyber liability, workers’ compensation, and business income insurance, among others based on specific organizational risks