Does My Nonprofit Need Insurance?

Why NonProfit Central Recommends Non-Profit Insurance

At NonProfit Central, we strongly encourage organizations to protect themselves with insurance. As a matter of fact, we go so far as to say, “RUN” from organizations that don’t feel insurance is important.

What would happen if:

• Your fundraising merchandise was damaged or stolen?
• Did someone accuse you of misrepresenting or mismanaging your group,
• Distributing false or misleading information?
• Money was missing?
• Somebody was hurt or property was damaged at one of your events?

Create a paper trail for clarification if questions arise at a later date.
You may believe that your nonprofit group can’t afford insurance, but if something like this happens to you, and you are not adequately insured, your board members could be personally held financially responsible. If your organization has no insurance, whether you are staff or a volunteer, consider running out the door now until it does.
Manage risk responsibly. Avoid lawsuits. Ensure to be sure.
Insurance policies vary, as do insurance companies. It pays to shop around. There is no one size fits all for non-profits, so look at your mission and activities to see what you need. It ca be very helpful to have the assistance of competent insurance professional. The price of insurance is part of the cost of doing business in the nonprofit world.