Why is Insurance Important for nonprofits?

There are multiple different types of insurance that nonprofit organizations may need. In this article, we’ll dive into these types and why insurance is so important for nonprofit organizations.


Nonprofit organizations do not make it their aim to create profit. However, these organizations are still businesses in one way or another. They still need the proper insurance coverage to protect their assets and their people to push their vision forward. Nonprofit organizations differ in many ways but they need more of the same type of insurance coverage. 

Types of Insurance for non-profit organizations

As an organization grows, challenges and problems arise. It’s imperative to take on the necessary steps to make sure that your nonprofit organization has the proper protection to keep it going for a long time despite the accidents, lawsuits, and other legal problems that come your way. 

General liability insurance

There are typically three types of general liability insurance package:

  • General liability is for bodily injuries and property damage claims. It also entails copyright infringement claims and others. 
  • Abuse and molestation liability is protection involving molestation and abuse. It can be an accusation from an employee, a volunteer, a contractor, and others. 
  • Professional liability is necessary if you have mentoring, counseling, and any related programs in your organization.

Accident insurance and Workers compensation

This type of insurance protects your workforce including your volunteers and employees. It also helps your employees and volunteers with their medical bills, disability, death benefits, and injuries. 

Employee dishonesty

Employee dishonesty is also referred to as crime bonds/crime coverage. It’s coverage to protect the organization from thefts and stolen funds. This is often one of the most common insurance for nonprofit organizations. Employee dishonesty insurance helps replace stolen funds. 

Directors and officers insurance

This type of insurance for non-profit organizations protects the directors, officers, and other employers from wrongful termination claims. It includes settlement and defense costs. The claim may come from clients, employees, third party agencies including the government and other funding organizations. 

Auto insurance

This is for organizations where members of the board or its employees use autos for the business. Nonprofit organizations can also get coverage for the autos of their volunteers who use their cars for volunteering in the organization. 

Importance of nonprofit insurance

The Nonprofit Insurance Alliance Group said that 95% of claims filed against non-profit organizations are Directors and Officers (D&O) issues such as wrongful termination, harassment, discrimination, and other similar concerns. 


Get coverage for your organization and make sure to get one that meets the needs of your nonprofit organization. Consult with agents first and see all your options before deciding the type of insurance you’re getting. 


London Insurance Agency is equipped with professional agents who are connected to several insurance companies. They have the experience and the expertise to help you get what you need. Agents at London Insurance Agency & Insurance Service Center can assist you with the right insurance coverage for your organization at an affordable price. 


Call us at +606-864-5152 or +606-528-5151. You can also visit the site to learn more.