General liability insurance for nonprofits

Nonprofits often work with the public, which means your business is exposed to many risks. General liability insurance protects against lawsuits that arise from accidents involving visitors, clients, or delivery people.

This policy provides liability coverage related to:

• Customer injuries
• Customer property damage
• Advertising injuries

If you hold a fundraiser or other special event, you might need this coverage to book a venue or fulfill a client contract.

If you run a small nonprofit, you may be able to bundle general liability insurance with commercial property insurance in a business owner’s policy. A BOP costs less than purchasing each policy separately.

Small, low-risk nonprofits usually qualify for a BOP, including:

• Tenant- or owner-occupied churches
• Charitable organizations
• A community center that offers low-risk activities

Speak with a licensed Insureon agent to find out if your nonprofit is eligible.

If a potential adopter is bitten by a cat at your animal shelter, or a delivery person slips at your community center, you could be blamed for the injury. If sued, you might end up paying for medical expenses – plus the cost of a legal battle. General liability insurance covers:

• Medical bills
• Attorney's fees
• Court-ordered judgments
• Settlements

Note that this policy does not cover injuries sustained by your employees or volunteers. For that, you’ll need workers’ compensation insurance.

When dealing with the public, your nonprofit might have to handle a client or visitor’s property. If an item is damaged or lost, your organization could be held liable. General liability insurance can help pay for:

• Repair of a damaged item
• Replacement of a destroyed or lost item
• Legal costs from a property damage lawsuit

While advertising your nonprofit and its services, it’s possible to mimic another company’s logo or slogan. Accidental advertising injuries are covered by general liability insurance, including:

• Defamation, both libel (written) and slander (spoken)
• Copyright or brand infringement

If you use any promotional materials to attract visitors to your nonprofit, you’ll definitely want to consider this protection.

While general liability insurance covers many common risks, it does not provide complete protection. Accidents involving your employees or property damage can happen at any organization. Other nonprofit insurance policies to consider include:

Business owner's policy: A BOP bundles general liability insurance with commercial property insurance, often at a lower rate than if the policies were purchased separately.

Professional liability insurance: Also known as errors and omissions insurance, this policy can help cover legal expenses if your nonprofit is sued for mistakes or negligence.

Directors and officers insurance: D&O insurance protects board members and officers if they are sued for a decision they made on behalf of your nonprofit that led to financial loss.

Workers’ compensation insurance: Nearly every state requires this coverage for organizations that have employees. Even when it's not required, it's a wise investment as it'll cover medical costs for work-related injuries, which could be denied by personal health insurance.

Employment practices liability insurance: If a nonprofit is sued for violating employee rights, EPLI can pay for legal costs.

Are you ready to safeguard your organization with general liability insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.