Possible Claims Examples

  • Negligence in Service: A nonprofit providing educational services is sued for not meeting the necessary academic standards, causing harm to the student’s learning.

  • Misrepresentation: A nonprofit healthcare advisor provides incorrect advice, leading to a client’s health deterioration.

  • Contractual Errors: A nonprofit involved in legal advisory is sued for errors in contract drafting, causing financial loss to a client.

  • Failure to Provide Services: A nonprofit fails to deliver the promised services on time, leading to a client’s financial loss and subsequent legal claim.

Cost of Professional Liability Insurance

The cost varies based on the nonprofit’s size, the type of services provided, and the coverage limits chosen. On average, nonprofits can expect to pay between $500 to $1,000 annually per $1 million of coverage.


Professional Liability Insurance is not merely a protective measure but a strategic investment that ensures the nonprofit’s resilience against legal claims related to professional services, allowing the organization to operate confidently and focus on its mission.