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What type of insurance does a nonprofit organization need? Nonprofits typically operate on a limited budget, so a single unexpected expense could lead to financial devastation. That’s why it’s crucial to prepare for the unexpected and protect your organization against risks. There are many different types of insurance policies out there, but here we’ll cover the bare essentials to consider for your nonprofit organization.

Types of Insurance for Nonprofits

General Liability Insurance

This is a foundational insurance policy for nonprofit organizations. A general liability policy covers common risks, including bodily injury, personal injury, and property damage. It protects against accident-related lawsuits, which could cost your nonprofit financially and reputationally.

Property Insurance

Property insurance is not only essential, but may be required if you rent, lease, or own a physical office location or storefront. It covers damage to your property due to fire, lightning, wind and hail, as well as theft and acts of vandalism. Policies typically include coverage for equipment, furnishing, inventory, records, and physical space.

Directors & Officers 

A member of your nonprofit’s board of directors and officers could potentially be named in a lawsuit associated with your nonprofit. For example, if a board member loses an investment, a creditor could sue the organization. D&O insurance covers the cost of defense and assists with financial recovery.

Professional Liability Insurance

Similar to D&O, professional liability insurance protects against claims of negligence from clients or customers. The policy typically covers negligence, copyright infringement, personal injury, discrimination, sexual harassment and more. It covers not only directors and officers but also staff, volunteers, and the nonprofit organization itself.

Personalized Nonprofit Insurance Solutions

Every nonprofit organization will have different insurance needs. Other types of insurance you may want to consider for your nonprofit are commercial auto, workers compensation, and product liability, among others. With 40+ years of proven experience, CTG Insurance delivers personalized solutions tailored to your unique needs, risks, and budget. Speak to one of our experienced advisors to find the right insurance policy for you.

About the Author: Anton Thornquist
Anton Thornquist is the owner of CTG Insurance. Anton purchased CTG from his grandfather Ralph, and expanded the company to begin covering nonprofit organizations of all sizes and causes, as well as human services organizations. Anton saw how these sectors were underserved much like churches were back when the company was founded, so now CTG seeks to help even more kinds of organizations with their important work.

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