Knowing when to purchase insurance and when not to is the name of the game. You don't want to spend money unnecessarily, but you don't want to find yourself in a sticky situation wishing you had purchased it. As a nonprofit, it's likely even more important that you don't spend money unnecessarily on things you don't need. That is because every dollar your nonprofit creates, you'll want to put back into your cause or be able to give directly to your cause. Insurance is one of those things that having is typically never a bad thing—even if you are a nonprofit organization.

You should be talking to your insurance broker. You may have questions about what insurance types are best for nonprofit trade associations. After all, there are dozens of potential insurance policies available to purchase. How do you know which are the right ones, or what's even available to you? More importantly, do you need insurance as a nonprofit? Let's take a look at the general types of policies available and why you could benefit from them.

General Liabilities

General liability insurance is among the first and foremost policy types you should consider. That is because it's blanket coverage of liabilities that could happen to your company. This includes things like individuals getting hurt on your property. It could also guard against certain lawsuits brought against your organization and more. General liability insurance is more affordable than you might think and can protect you against certain losses.

Workers Compensation

Most nonprofits have people working for them. Whether you hire people in a shop or you have board members, considering what could happen to them while performing acts for the organization is crucial. If they were to get hurt, you could still be held liable for those injuries. The best way to cover yourself is by purchasing workers' compensation insurance.

Property Insurance

If you own or rent property in your nonprofit's name, having property insurance is a great idea. This will protect you against any losses, whether it be to the property itself or your assets inside. To purchase the correct amount of insurance, you should consider the replacement value of the property and all your assets. For this type of insurance, we recommend that you review your amounts annually to ensure they align with proper coverage.

Final Thoughts

As you can see, there is a wide range of insurance types your nonprofit can select from. This isn't even the full list. You can also purchase directors' insurance to cover against lawsuits of harassment, auto insurance, and professional liability. The top way to ensure you have the best coverage is to speak directly to your broker.