Non-Profit Insurance

Nonprofit organizations play an important role in communities across Massachusetts — from charitable foundations and fraternal organizations to houses of worship, educational groups, and community associations.

While nonprofit organizations operate differently than for-profit businesses, they still face many of the same risks. Nonprofit insurance is designed to help protect an organization’s finances, leadership, and mission if an accident, claim, or unexpected event occurs.

At Risman Insurance Agencies, we work with nonprofit organizations throughout Massachusetts to help them understand their exposures and explore insurance options aligned with how they operate.

What Is Considered a Nonprofit Organization?

A nonprofit organization is generally structured to reinvest any surplus revenue back into the organization’s mission rather than distributing profits to owners or shareholders.

Nonprofits may include:

Charitable and philanthropic organizations
Fraternal organizations and social clubs
Houses of worship and faith-based organizations
Educational and parent-teacher organizations
Foundations, associations, and community groups

Many nonprofits are governed by a board of directors and may rely on a combination of employees, volunteers, and paid executives.

Nonprofit status does not mean an organization is immune from liability or legal responsibility.

Why Nonprofits Have Unique Insurance Needs

Nonprofits often work with:

Volunteers and employees
Donors and the general public
Events, fundraisers, and rented venues
Boards making governance and financial decisions

Because of this, nonprofit organizations can face liability exposures related to injuries, property damage, employment issues, and management decisions.

Insurance helps nonprofits manage these risks so leadership can remain focused on advancing the organization’s mission.

Common Nonprofit Insurance Coverage Options

Nonprofit insurance is not a single policy. It is typically a combination of coverages tailored to the organization’s activities, property, and governance structure.

Coverage options may include:

Commercial General Liability Insurance

General liability insurance may help address certain third-party bodily injury or property damage claims involving visitors, participants, or event attendees.

This coverage is often required by landlords, venues, and municipalities.

Directors & Officers (D&O) Liability Insurance

D&O insurance is commonly reviewed by nonprofit organizations with boards of directors.

It may help protect board members, officers, and leadership against certain claims related to governance decisions, financial oversight, or management practices.

Commercial Property Insurance

If your nonprofit owns or leases a building, property insurance may help protect the structure and business contents such as furniture, equipment, and supplies.

Coverage needs vary based on ownership and lease requirements.

Workers’ Compensation Insurance

Workers’ compensation insurance is required for most Massachusetts employers and may apply to employees injured while performing job-related duties.

Coverage requirements for volunteers can vary and should be reviewed carefully.

Commercial Auto Insurance

If vehicles are owned, leased, or used for nonprofit operations, commercial auto insurance may be needed to address auto-related risks.

Additional Coverage Considerations

Depending on your organization’s activities, you may also need to review:

Each nonprofit organization is different, which is why coverage should be reviewed holistically.

Common Misconceptions About Nonprofit Insurance

A common misconception is that nonprofit organizations are less likely to face lawsuits or liability claims.

In reality, nonprofits can be held responsible for:

Injuries involving volunteers or participants
Property damage at events or facilities
Employment-related claims
Decisions made by boards or leadership

Insurance does not eliminate risk, but it can help organizations manage financial exposure.

Why Nonprofit Organizations Work with Risman Insurance Agencies

Experience with mission-driven organizations

We understand the structure and operational realities of nonprofit organizations, including boards, volunteers, and fundraising activities.

Independent agency with multiple carriers

As an independent agency, we work with multiple insurance companies and help nonprofits compare coverage options based on size, activities, and budget.

Support beyond the policy

From certificates of insurance for events to coverage reviews as programs expand, our team provides ongoing support throughout the year.

Request a Nonprofit Insurance Review

If you manage or serve on the board of a nonprofit organization in Massachusetts, it may be worth reviewing your current insurance program.

Call: 781-396-2116
Request: Contact us online to start the conversation

Insurance coverage cannot be added, deleted, or changed until confirmed in writing from our office.