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Compare business insurance for nonprofits and associations

Find the right blend of coverage for your organization's unique services.

Business insurance can help nonprofits and associations because it protects the liabilities of its social or charitable activities. Just as business owners protect their operations and bottom line, you may need to cover volunteers, members, special events, interactions with media or those receiving your organization’s service.

What insurance should nonprofits and associations consider?

A typical business insurance policy covers a range of possible situations. However, you may need additional coverage specific to your nonprofit’s or association’s activities:

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General business insurance

  • Commercial property protects your organization’s building and physical belongings from damage or theft.
  • Business interruption helps your nonprofit or association recover if you need to close down for a short time. This coverage is typically added to a business owner’s policy.
  • General liability protects your nonprofit or association for damage unrelated to your field of work. Depending on the policy specifics, it can include some elements of advertising, public and product liability.
  • Employment practices liability covers employee claims like harassment, discrimination or unfair dismissal.
  • Workers’ compensation protects employees for injuries or illnesses that happen on the job.

Insurance for nonprofits

  • Directors and officers liability (D&O) protects board members or officers from claims of losses or wrongful acts for decisions they make.
  • Event insurance is an insurance package that includes short-term public liability along with other coverage like liquor liability and event cancellation coverage.
  • Professional liability protects your nonprofit for services offered like medical care or advice given.
  • Public liability grants added liability protection for people who visit your office or for damage related to your negligent actions. For example, a visitor might trip on a hidden step coming into your office.
  • Product liability gives your nonprofit protection for injuries or other damage caused by the products you give out.
  • Media liability protects your organization for mistakes made in the public eye like news reports or publishing material on your website.
  • Workers’ compensation protects employees if they’re injured on the job. This applies if your nonprofit has more than one or two employees. You’ll need to check your state’s laws on buying coverage for volunteers.

Insurance for associations

  • Event insurance package can protect events your association hosts with specific coverage for each event’s needs. Examples include medical expenses, event cancellation and liability for damage caused by those attending.
  • Fidelity insurance covers financial losses or damage from employee or member fraud or dishonesty. This may include fraud from outside sources too.
  • Professional liability protects against harm or losses while your organization provides professional services like medical care or consulting.
  • Public liability protects your association for injuries or damage that happens out of negligence.

What is an alliance of nonprofits for insurance?

In some states, nonprofits can choose to buy insurance through a group of nonprofits, rather than a traditional insurance company. Nonprofits may benefit from this structure because it accounts for risks specific to nonprofits. It may also keep costs low compared to standard insurance prices.

What types of nonprofits and associations need insurance?

Nonprofits or associations that may need business insurance include:

  • Charities
  • Civic or social advocacy groups
  • Credit unions
  • Foundations
  • Fraternal societies
  • Mutual insurance companies
  • Not-for-profits
  • Private education
  • Trusts
  • Veteran programs and organizations

Types of associations that may need coverage:

  • Animal clubs
  • Condo associations
  • Homeowners associations
  • Industry unions
  • Local employee associations
  • Political associations
  • Racing associations
  • Realtor associations
  • Religious organizations
  • Sports club

What affects insurance costs for a nonprofit or association?

Every nonprofit and association offers unique services and opportunities, making insurance needs and costs equally unique. These factors may influence how much your organization pays:

  • Dangers involved. Your organization may face dangers for caring for children, providing medical care, hosting special events or fundraisers or delivering food and items to people in need. Your specific risks will affect your insurance prices.
  • Level of coverage. The types of coverage and annual limits you choose will influence how much your organization pays.
  • Your organization’s size. You may shell out more to cover multiple employees, regional or national events or large numbers of services.
  • Your state’s laws. Your state may require more or less insurance than in other areas.

What claims might nonprofits or associations face?

Your organization and key leaders shoulder a special responsibility to protect employees, property, finances and reputation. These responsibilities can lead to a variety of threats:

  • Incompetent supervision of employees
  • Ineffective managing of finances or affairs
  • Misleading reporting or misuse of finances or activities
  • An employee misusing the organization’s funds
  • Harassment or discrimination from the organization, members or staff
  • Failing to act or respond to a situation
Must read: Many lawsuits brought against nonprofits and other associations involve physical injuries or damage from car accidents and falls at the organization’s premises or event. Claims that allege wrongful employer practices like discrimination can bring on expensive lawsuits as well.

What exclusions should I watch out for?

Like any insurance policy, there are exclusions that could add to a nonprofit’s or association’s financial responsibilities:

  • Acts committed before the policy’s retroactive date
  • Agreements, clauses, warranties or guarantees that place liability on the organization
  • An act or event the nonprofit or association knew would result in claims prior to taking out the policy
  • Breach of regulations like health and workplace safety laws
  • Criminal acts the organization knows about or performs
  • Damage from war or acts of terrorism
  • Deteriorating documents from fading, mold, vermin or general wear and tear
  • Failing to recover losses through refunds or another business’s insurance first
  • Interruption to normal activities from strikes or lockouts
  • Violation of legal obligations to employee benefits such as workers compensation or disability benefits

Bottom line

You can find an assortment of insurance to match your association’s services and offerings. That includes options to fit your budget needs. Look for the best protection among business insurance providers that serve organizations like yours.

Questions about insurance for nonprofits and associations

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