The moment your organization owns or leases anything of real value (such as property, structures, or even a vehicle), you need to seriously consider obtaining insurance.

General liability insurance provides protection from claims arising from bodily or property damage considered to result from simple negligence. Every group is at risk of such claims. For example, a volunteer's actions could injure or damage another person or someone's personal property. A person could be hurt or experience property damage while attending an event on your property. The injured party might claim your organization or an individual was negligent or reckless. Liability insurance will pay for legal defense and any financial judgment incurred. To protect assets that belong to the group, such as office equipment and merchandise inventory, you may need to buy personal property or physical damage insurance coverage.

Maintaining a Sense of Perspective

Any discussion about insurance will inevitably drift to every possible worst-case scenario. We live in a highly litigious culture where it seems people will sue anyone at any time for any perceived slight. However, as a start-up nonprofit, you need to differentiate between the risks you may truly face and the risks that do not apply to your situation.

Until you have employees or own property, you may be able to satisfy your coverage with basic D&O insurance. No one will to try to sue an organization that has nothing to lose.