Running a nonprofit organization may seem like a relatively risk-free endeavor but this is unfortunately not the case. Many nonprofits face the exact same risks as for-profit businesses and, in many cases, the risks are greater.
Due to the tight budget that most nonprofit organizations run on, a single large, unexpected expense could lead to financial ruin. This makes it absolutely vital that you have nonprofit liability insurance coverage.
What Is Nonprofit Liability Insurance?
Nonprofit liability insurance is a type of insurance coverage that is designed to protect nonprofit organizations from a variety of common liability risks. If a third party like a visitor, customer, or supplier is injured or has their property damaged on the organization’s property, you could be held liable for any associated costs if you don’t have this type of insurance.
How Much Does Nonprofit Liability Insurance Cost?
Unfortunately, there is no one set price for nonprofit liability insurance. The price you will pay is determined by a number of factors. Some of these factors are:
- Your location
- Your claim history
- The size of your nonprofit organization
Nonprofit organizations face many of the same liability risks as for-profit businesses and usually have a very tight budget. This makes having nonprofit liability insurance absolutely vital if you want to keep everything running smoothly.