What Kind of Insurance Does a Nonprofit Need?
Nonprofit insurance is a type ofbusiness insurance that helps protect 501(c)(3) organizations from risks and claims that can come up during normal operations. Each nonprofit organization has unique needs, so they may need different types of coverage.
Many nonprofits start with a Business Owner’s Policy (BOP). It includes three essential coverages that can help protect your nonprofit organization, such as:
- General liability insuranceto help cover claims that your nonprofit caused bodily injury or property damage.
- Commercial property insurance, which helps protect the owned or rented building, tools, equipment and inventory you use to operate your nonprofit. This is also known as business property coverage.
- Business income insuranceto help replace lost income if you can’t operate your nonprofit due to covered property damage.
Your nonprofit organization may need additional coverage for more protection. This can include:
- Commercial auto insuranceto help protect you and your employees on the road if you drive a company-owned vehicle for business.
- Data breach insuranceto help your nonprofit respond to a breach if personally identifiable information (PII) gets lost or stolen.
Who Needs Nonprofit Insurance?
- Trade nonprofit associations
- Business nonprofit associations
- Professional nonprofit associations
- Alumni nonprofit association
- Charitable foundations
- Civic nonprofit associations
- Political clubs
- Recreation clubs
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How Much Is Nonprofit Insurance?
Our customers paid an average of about $85 a month for a Business Owner's Policy.1 But remember, your nonprofit insurance costs will vary. Insurance companies use different factors when determining insurance costs, which can include:
- Industry
- Claims history
- Location
- Number of employees
- Coverage limits
The best way to find out how much nonprofit insurance will cost you is to get a quote.
Protecting Your Nonprofit Organization Property
Having the right kind of nonprofit insurance can help you respond and recover from disasters. It can also help repair or replace damaged property that you need to operate.
About 40% of small businesses never reopen after a disaster.2
Stolen Furniture
“Someone broke into our office and stole some furniture and computers. Replacing all of it ended up costing thousands of dollars.”
Commercial property insurance can help cover your costs to repair or replace damaged or stolen equipment and the tools you use to operate your nonprofit.
Fire Damage
“A fire broke out in the storefront right next to our organization’s headquarters. It spread, causing heavy damage to our space so we had to close temporarily because we couldn’t operate while repairs were being made.”
Business income insurance can help replace lost income if you can’t operate your nonprofit because of covered property damage. You can use this to help pay for ongoing expenses, like rent, bills and payroll.
Protecting Your Nonprofit Team
It’s essential that you protect your employees at your nonprofit organization. They’re a critical part to your organization’s success. With nonprofit insurance, you can help them if they get hurt or sick from their job.
The average number of days away from work after a work-related injury or illness was 12 days.3
Carpal Tunnel
“One of our staff members started to get pain in her wrists. She was diagnosed with carpal tunnel syndrome from typing all day and had to go to physical therapy for treatment.”
Workers’ compensation insurancegives your employee benefits to help them recover from work-related injuries and illnesses, such as repetitive stress injuries, like carpal tunnel.
Car Accident
“We were driving our nonprofit van to meet with a few community leaders. My employee rear-ended another driver, causing damage to their car.”
Commercial auto insurance can help cover claims of property damage or bodily injury from an accident that you or an employee cause while driving a nonprofit-owned vehicle for business.
Covering Your Nonprofit Operations
Chances are, you started your nonprofit to help make a change. But to keep making a difference, you need business insurance that will keep you protected. Finding an insurance company that knows your needs and offers the right nonprofit insurance can make all the difference.
The number of data compromises is up 68% over 2020.4
Stolen Client Data
“One of our employees clicked a link from a phishing email. Our system was hacked and all the client information stored in our database was stolen.”
Data breach insurance can help your nonprofit respond to a breach if personally identifiable information gets lost or stolen. Some insurers call this coverage cyber liability insurance.
Customer Injury
“A customer was visiting our nonprofit when he tripped over some furniture and sprained his wrist. He had to go to the hospital for treatment.”
General liability coverage helps protect your nonprofit from claims that it caused bodily injury or property damage to someone else.
Get a Nonprofit Insurance Quote From The Hartford
We’re backed by more than 200 years of experience and know the unique risks that nonprofit organizations face every day. We work hard to provide specialized protection that small businesses and nonprofits need. Our specialists can work with you to create a nonprofit insurance policy that fits your organization best.
Nonprofit Insurance Made for Your Organization
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More Answers to Frequently Asked Business Insurance Questions
For Larger Firms
Larger nonprofit organizations and associations need specialized coverage.
Last Updated: November 16, 2023
1 Premium amounts presented are based on monthly premium paid by The Hartford's Small Business customers between 1/1/22 and 9/14/23 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.
2 Forbes, “Why Disaster Recovery Is No Longer Optional for Today’s Businesses”
3U.S. Bureau of Labor Statistics, “Employer-Reported Workplace Injuries and Illnesses – 2020”
4 Identify Theft Resource Center, “2021 in Review – Data Breach Annual Report”
Additional disclosures below.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature. The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation. Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. listed in theLegal Notice. The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, CT. For additional details, please read The Hartford’s Legal Notice. * Customer reviews are collected and tabulated by The Hartford and not representative of all customers.
