Nonprofit Liability Insurance

Volunteers sorting donated clothing at a community center, showing liabilities covered by nonprofit liability insurance

Nonprofit Insurance Made To Protect Your Organization

You’re passionate about what you do, but do you have the right protection to ensure your 501(c)(3) stays successful? Our nonprofit liability insurance can help safeguard your nonprofit against the unique risks you face every day.
 
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Volunteers sorting donated clothing at a community center, showing liabilities covered by nonprofit liability insurance

What Is Nonprofit Liability Insurance?

Nonprofit liability insurance is a collection of coverages designed to help protect 501(c)(3) nonprofit organizations from the unique risks of their profession. This package of business insurance coverages can help cover certain claims that can arise from a nonprofit’s day-to-day operations. It can help protect organizations if a third-party claims that a nonprofit’s activities caused bodily injury or property damage to someone else. It can also help cover the associated legal costs related to these claims.
 
This type of coverage can help protect nonprofit organizations as well as their employees, volunteers and board members. For example, nonprofit liability insurance may help pay for legal expenses if someone is injured at an event or if an employee accidentally damages property while providing services.
 
Often called liability insurance for nonprofits, this coverage helps organizations handle everyday risks that can come with serving the public. By helping to cover certain liability-related claims, this insurance can help reduce unexpected financial setbacks, so nonprofits can continue their work with confidence.
 

Why Might You Need Liability Insurance for Nonprofits?

Nonprofit organizations often work closely with the public, which can bring added responsibility and risk. Business insurance for nonprofit organizations is important, because it can help cover unexpected costs if someone claims your business caused them bodily injury, property damage, advertising injury or personal injury like libel or slander.
 
You may need liability insurance if your nonprofit organization is involved in any of these situations:
 
  • Hosting fundraising events or public gatherings
  • Operating community programs or services
  • Working with volunteers, donors or board members
  • Owning or leasing office or event space
  • Meeting insurance requirements set by contracts or venues
Liability insurance can offer peace of mind by helping nonprofits prepare for unexpected events. In addition to liability coverage, many nonprofits may also need other types of business insurance, such as workers’ compensation, commercial auto insurance or cyber insurance, to help support their operations and the people they serve.
nonprofit insurance coverage

Who Needs Nonprofit Insurance?

Liability insurance for nonprofit organizations may apply to many groups that provide community services, host events or run programs. Coverage needs can vary based on an organization’s size, activities, number of employees or volunteers and level of public interaction. Examples of nonprofit organizations that may need business insurance include:
 
  • Alumni nonprofit association
  • Business nonprofit associations
  • Charitable foundations
  • Churches
  • Civic nonprofit associations
  • Political clubs
  • Professional nonprofit associations
  • Recreation clubs
  • Trade nonprofit associations

What Types of Insurance Might a Nonprofit Organization Need?

Many nonprofits start with a Business Owner’s Policy (BOP) because of the peace of mind it can provide. It includes three essential coverages that can help protect your nonprofit organization from everyday risks:
 
  • General liability insurance helps cover claims that your nonprofit caused bodily or personal injury or physical damage to someone’s property.
  • Commercial property insurance helps protect the owned or rented building, tools, office equipment and inventory you use to operate your nonprofit. This is also known as business property coverage.
  • Business income insurance helps replace lost income if you can’t operate your nonprofit temporarily due to covered property damage.
At The Hartford, we know that every nonprofit is unique. That’s why we’ve made it easy for you to add other types of insurance to your BOP for well-rounded protection, including:
 
  • Commercial auto insurance to help cover bodily injury or property damage claims from an auto accident you or an employee causes while driving a company-owned vehicle for work.
  • Commercial umbrella insurance to help extend your existing liability limits and provide additional protection if a covered claim exceeds your underlying policy limits.
  • Cyber insurance to help your nonprofit respond to a data breach if personally identifiable information (PII) gets lost or stolen.
  • Professional liability insurance to help protect your nonprofit from claims of negligence, errors or omissions related to the services you provide to customers.
  • Workers’ compensation insurance to help cover medical expenses and lost wages if an employee is injured or becomes ill due to a work-related incident.
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How Much Does Nonprofit General Liability Insurance Cost?

On average, The Hartford’s nonprofit business customers pay about $70 a month, or about $836 annually, for a Business Owner's Policy.** It’s important to remember that the cost of insurance for your nonprofit organization may be different than the average. That’s because every business owner has unique needs, and insurers can use several factors to determine rates, including:
 
  • Industry
  • Claims history
  • Location
  • Number of employees
  • Coverage limits
The best way to find out how much nonprofit insurance will cost you is to get a quote.
Nonprofit insurance policy

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Protecting Your Property

The right kind of nonprofit general liability insurance can help you respond to disasters and recover from setbacks. It can also help repair or replace damaged property that you rely on to keep your business running smoothly.
Burglary and theft accounted for 20% of small business claims in 2025.2
nonprofit organization

Commercial Property Insurance

“Someone broke into our office and stole some furniture and computers. Replacing all of it cost thousands of dollars.”
 
Commercial property insurance can help cover your costs to repair or replace damaged or stolen equipment and the tools you use to operate your nonprofit.
Business insurance for nonprofits

Business Income Insurance

“A fire broke out in the storefront right next to our organization’s headquarters. It spread, causing heavy damage to our space. We had to close temporarily because we couldn’t operate while repairs were being made.”
 
Business income insurance can help replace lost income if you can’t operate your nonprofit temporarily because of covered property damage. You can use this coverage to help pay ongoing expenses like rent, bills and payroll.

Protecting Your Team

Your nonprofit directors, board members and employees are critical to your organization’s success. Nonprofit insurance can help protect them if they get hurt or sick from their job.
Between 2023 and 2024, the average number of days away from work after a work-related injury or illness was 15 days.3
workers' comp insurance for nonprofits

Workers’ Compensation Insurance

“One of our staff members started to feel pain in her wrists. She was diagnosed with carpal tunnel syndrome from typing all day and needed physical therapy for treatment.”
 
Workers’ compensation insurance gives your employee benefits to help them recover from work-related injuries and illnesses, such as repetitive stress injuries, like carpal tunnel. 
commercial auto insurance for nonprofit

Commercial Auto Insurance

“We were driving our nonprofit van to meet with a few community leaders when my employee rear-ended another driver, causing damage to their car.”
 
Commercial auto insurance can help cover claims of property damage or bodily injury from an accident that you or an employee causes while driving a nonprofit-owned vehicle for work.

Covering Your Operations

Chances are — you started your nonprofit to help change the world. But to keep making a difference, you need insurance that can help protect your business from everyday risks. Finding an insurance company that knows your needs and offers the right nonprofit insurance can make all the difference.
In 2025, 43% of data breaches impacted small businesses.4
nonprofit insurance quote

Data Breach Insurance

“One of our employees clicked a link from a phishing email. As a result, someone hacked our system and stole all the client information stored in our database.”
 
Data breach insurance can help your nonprofit respond to a breach if personally identifiable information gets lost or stolen. Some insurers call this coverage cyber liability insurance.
general liability insurance for nonprofits

General Liability Insurance

“A customer was visiting our nonprofit when he tripped over some furniture and sprained his wrist. He had to go to the hospital for treatment.”
 
General liability insurance coverage helps protect your nonprofit from claims that it caused bodily injury or property damage to someone else.

Protect Your Organization With Nonprofit Liability Insurance You Can Trust

With more than 200 years of insurance experience, The Hartford understands the unique industry risks that most nonprofit organizations could face every day. That’s why we work hard to provide specialized protection that small businesses and nonprofits need. Our specialists can work with you to create a nonprofit insurance policy that best fits your organization.
 
Get a quote for business insurance for nonprofit organizations and see how The Hartford can help protect your organization’s mission, your team and the communities you serve.
 
Find out more about other related professions we insure:
 

Frequently Asked Questions About Nonprofit Insurance

Insurance for nonprofit organizations can help cover claims that your operations caused bodily injury, personal injury or damage to someone else’s property. It can help pay for legal defense costs, settlements or judgments related to covered claims.
Many nonprofits start with general liability insurance to help safeguard against common third-party claims that could come up during normal operations. Depending on how your organization operates, you might also want to consider commercial property, workers’ compensation, professional liability, cyber insurance or a Business Owner’s Policy (BOP).
Nonprofits may have some legal protections, but those protections don’t stop all lawsuits. Liability insurance can help cover costs if your nonprofit is involved in a lawsuit related to a covered claim. Laws vary by state, so it’s a good idea to check your local requirements.
Liability insurance requirements vary by state, location and contract. While it may not always be legally required, landlords, lenders, donors or event venues may require nonprofits to carry liability coverage. Even when it isn’t required, liability insurance for nonprofit organizations can help protect your finances if an unexpected claim or lawsuit arises.
Nonprofits can face liabilities similar to other organizations, like claims involving bodily injury, property damage, professional services, employment practices or data breaches. The risks depend on your activities, services and operations. For example, an attendee at one of your community events could hurt themselves and blame your nonprofit for their injuries. If they sue you for their bodily injuries, your liability insurance can help cover their medical bills and any legal fees or settlements from the injury.
Some nonprofit liability policies may help cover volunteers acting on behalf of the organization. Coverage depends on the policy’s terms, conditions and exclusions. So, it’s important to review your specific policy.
Nonprofit liability insurance focuses on claims involving injury, damage or negligence.  Nonprofit business insurance often refers to a broader collection of coverages, such as liability, property and business income insurance, designed to help fully protect your organization.
Yes. “Insurance for a nonprofit organization” and “nonprofit insurance” generally refer to the same type of coverage. It’s designed to help protect nonprofit organizations from common risks.
Without liability insurance, a nonprofit may be responsible for paying legal defense costs, settlements or judgments out of pocket if a claim occurs. These expenses can significantly impact an organization’s finances and operations.
Liability insurance may help cover certain claims arising from fundraising events, such as bodily injury or property damage. Coverage depends on the policy and the nature of the event. You’ll need to talk to your agent or an insurance specialist from The Hartford to confirm what is included in your policy and add coverage if necessary.
general liability insurance for nonprofit

Nonprofit Insurance Made for Your Organization

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Last Updated: April 30, 2026
** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.
2 The Hartford, “Water and Freezing Damage, Burglary Lead The Hartford’s Top Five Small Business Claims,” viewed April 2026.
 
3 U.S. Bureau of Labor Statistics, “Employer-Reported Workplace Injuries and Illnesses — 2023 to 2024,” viewed April 2026.
 
4 Verizon, “2025 Data Breach Investigations Report — Small- and Medium-Sized Business Snapshot,” viewed April 2026.
 
Additional disclosures below.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
 
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
 
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Insurance Group, Inc. listed in the Legal Notice.
 
The Hartford Insurance Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, CT. For additional details, please read The Hartford’s Legal Notice.
 
* Customer reviews are collected and tabulated by The Hartford and not representative of all customers.
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