How much does insurance cost for a nonprofit organization?

The only published nonprofit prices

No government agency collects what nonprofits pay for liability insurance. The one dollar source we found is Insureon. It reports medians for nonprofits that bought through it, “such as churches and charitable organizations”⁠¹. The page calls them averages but says the figures are medians. It was last updated May 8, 2025, more than a year before the all-customer pages cited below⁠¹.

Scroll the table sideways to see every column.

Source: Insureon⁠¹.

Inside general liability, the spread by activity is wide. Animal shelters pay $61 a month, while vocational workshops and counseling and referral centers pay $32⁠¹. Insureon attributes the shelters’ higher price to the chance of injury from an encounter with an animal⁠¹.

Compare Insureon’s newer all-customer pages. Its nonprofit D&O median of $67 is about half the $133 it reports across all small-business D&O buyers (July 7, 2026)⁠¹⁠². Its employment practices liability page lists nonprofits at $68 a month against $257 for all customers (July 13, 2026)⁠³. Those are our comparisons of one broker’s figures, taken from pages of different dates. They describe small organizations buying online: Insureon says most of its customers have fewer than five employees⁠². A multi-site social service agency with 200 staff is not in that mix.

Board liability: what the Volunteer Protection Act covers and what it leaves

The federal Volunteer Protection Act of 1997 says a volunteer of a nonprofit is not liable for harm caused while acting for the organization, if four conditions hold⁠⁴:

• the volunteer acted within the scope of their responsibilities;
• they were licensed or certified where the activity required it;
• the harm was not caused by willful or criminal misconduct, gross negligence, reckless misconduct or “a conscious, flagrant indifference” to the victim’s rights or safety;
• the harm was not caused by operating a vehicle, vessel or aircraft for which the state requires a license or insurance (a 2018 amendment adds separate protection for volunteer pilots of charitable flight organizations).

A “volunteer” is someone who receives no compensation beyond reasonable expense reimbursement, and no more than $500 a year in other things of value given in lieu of pay. The definition names directors, officers and trustees expressly⁠⁵. A board member who receives a stipend above that line loses the federal shield. So does a paid executive director, who is not a volunteer at all.

The Act also caps what a protected volunteer pays when a claim does succeed. Punitive damages require clear and convincing evidence of willful or criminal misconduct or flagrant indifference⁠⁴. Noneconomic damages, such as pain and suffering or injury to reputation, are owed only in proportion to the volunteer’s share of fault⁠⁷.

What the Act does not do is the reason nonprofits buy D&O and general liability anyway:

• The organization stays liable. “Nothing in this section shall be construed to affect the liability of any nonprofit organization”⁠⁴. A claimant who cannot reach the volunteer sues the charity.
• Suits by the organization are untouched. The Act does not affect a claim the nonprofit itself brings against its own volunteer⁠⁴.
• Some conduct is carved out entirely. No protection applies to a crime of violence or act of international terrorism, or a sexual offense, for which the volunteer was convicted; to a hate crime; to misconduct found to violate a civil rights law; or to harm caused while under the influence of alcohol or drugs⁠⁴.
• Drivers are excluded. Volunteers driving their own cars to deliver meals or transport clients have no federal protection. That exposure sits with auto policies and with the organization.
• States can change the terms. The Act preempts state laws that give volunteers less protection, but keeps those that give more⁠⁶. A state may also require the organization to follow risk-management procedures, including volunteer training, make the organization answer for volunteers as it would for employees, or grant protection only if the organization carries insurance or another “financially secure source of recovery”⁠⁴. A state can opt out for suits in its own courts where every party is a citizen of that state⁠⁶.

The Act does not stop a suit from being filed, and nothing in it pays for a defense. Insureon says some directors ask for a D&O policy before agreeing to join a board⁠¹. The Hartford says any organization with a board should consider D&O, “including non-profit organizations”⁠²⁵. For how Side A, B and C split the limit, see the D&O page. Employee claims of discrimination or wrongful termination fall to employment practices liability, which Insureon’s nonprofit customers often buy bundled with D&O, at a median of $126 a month⁠¹.

Youth programs and abuse coverage

For any group serving children or vulnerable adults (youth sports leagues, mentoring programs, camps, after-school programs, congregations), abuse and molestation is the exposure that most changes the insurance picture. The Volunteer Protection Act gives a volunteer no protection for a sexual offense once convicted of it⁠⁴, and it never limited the organization’s own liability in the first place⁠⁴.

Insurers usually handle this exposure through a dedicated endorsement. Markel’s published form MGL 102 shows the pattern⁠⁸:

• It pays for abuse, molestation or exploitation by anyone of a person in the insured’s care, custody or control, where the claim arises from negligent employment, training, investigation, reporting, retention or supervision.
• Its limits are separate from the general liability limit and are set on the endorsement’s schedule. Outside the endorsement, the policy gives no coverage for abuse at all.
• It excludes anyone who took part in the abuse, and anyone who “remains passive” after learning of abuse by an employee or volunteer.

No insurer in our data publishes what this endorsement costs. When comparing quotes, the questions that matter are whether abuse cover is included at all, the per-person and aggregate limits next to the $1 million general liability limit, and whether volunteers count as insureds. See child care centers for the same exposure in a licensed setting.

Fundraising events, alcohol and volunteer drivers

Galas, runs, auctions and festivals bring crowds the organization does not normally have on site. Insureon lists special event insurance among the endorsements that raise a nonprofit’s general liability premium⁠¹. It names additional insured endorsements in the same list⁠¹. We found no published per-event price.

Alcohol changes the event’s risk class. South Carolina, for example, has since January 1, 2026 required on-premises liquor licensees open after 5 p.m. to carry liquor liability with at least a $1 million annual aggregate. The required aggregate drops by $500,000 for 501(c)(3) nonprofits and for single special events, but never below $300,000⁠⁹. See liquor liability for host versus licensee exposure.

Volunteers who drive for the organization fall outside the Act⁠⁴. The organization’s exposure for cars it does not own is covered by hired and non-owned auto liability, not by general liability.

Workers’ comp: staff are covered, volunteers usually are not

A nonprofit’s paid employees are covered by workers’ compensation like any other employer’s. The class depends on the work, and social service work rates well above an office. Ohio, Washington and Wyoming run monopolistic state funds and publish their actual rates:

Base rates set by the state fund before experience modification. Ohio and Wyoming charge per $100 of payroll; Washington charges per hour worked, and part is withheld from wages. Other states’ insurers file their own rates; see where rates are published.

What the schedules show:

• Ohio. A social services organization (8864) pays $0.8856 per $100 of payroll, 19 times the clerical rate of $0.0466 (our calculation)⁠¹¹. A YMCA-type institution (9063) sits between them at $0.4133.
• Washington. Community action organizations (5308) pay $0.4394 per hour worked. Professional and clerical staff of schools, churches and day care (6103) pay $0.4289, about twice general clerical work at $0.2223⁠¹². Part of each Washington rate may be withheld from the worker’s wages.
• Wyoming. Religious, grantmaking, civic and similar organizations (813000) pay $0.62 per $100. Social assistance (624000) pays $1.85, three times as much⁠¹³.

For the whole sector, BLS measured employer comp costs in June 2026 at $0.35 per hour worked in other services, which includes religious and civic organizations. Education and health services, which includes social assistance, came in at $0.30. The all-private-industry figure was $0.43⁠¹⁴. These are averages across every employer in the group, not a rate for any single organization.

Unpaid volunteers are generally not employees for comp purposes, but states draw the line differently:

• California excludes anyone performing voluntary service for a private nonprofit who receives nothing beyond meals, transportation, lodging or reimbursed incidental expenses⁠¹⁶. The board may still declare volunteers employees, in writing and before any injury, and the organization’s comp policy then covers them⁠¹⁷.
• Florida excludes volunteers, including those of private nonprofit agencies whose expenses paid stay within standard mileage and per diem amounts, but not volunteers of government bodies⁠¹⁸. Florida requires comp only once a non-construction employer has four or more employees⁠¹⁸.
• New York goes further. It excludes volunteers not under a contract of hire, and also paid staff “engaged in a teaching or nonmanual capacity” for a religious, charitable or educational institution⁠¹⁹. Manual workers at the same charity must be covered.
• Washington lets a private nonprofit charitable organization cover all its registered volunteers for medical aid only, if it notifies L&I before an injury. The organization pays the premium⁠¹⁵. In 2026 that is class 6901, at $0.0677 per volunteer hour⁠¹².

Where volunteers have no comp coverage, an injured volunteer’s own health insurance pays first, and the remaining option is to sue the organization. Volunteer accident insurance fills part of that gap. Affinity Nonprofit’s program, underwritten by Arch Insurance Company, pays excess medical expenses up to $100,000 (Basic plan) at $3.96 per volunteer per policy term, with no deductible. The Select plan pays up to $250,000 at $4.35⁠¹⁰. The minimum premium is $250 a year for Basic and $275 for Select. These rates are dated July 13, 2023⁠¹⁰.

Unemployment insurance: the 501(c)(3) reimbursing option

Unemployment insurance is not an insurance policy you buy, but for a charity with staff it is a payroll cost that works like one. Service for a 501(c)(3) organization is excluded from “employment” under the Federal Unemployment Tax Act, so a 501(c)(3) pays no FUTA tax⁠²⁰. The exclusion is written for 501(c)(3) organizations only⁠²⁰.

Federal law then requires every state to cover 501(c)(3) employees under its own UI program once the organization employs four or more people on 20 days in 20 different weeks of the year⁠²¹. Churches, church-controlled organizations and religious schools are exempt⁠²¹. Each state must let a covered nonprofit choose between paying state UI tax like a business and reimbursing the state fund for the benefits its former employees actually draw⁠²¹.

Reimbursing is self-insurance. It saves money if few staff ever claim benefits, and it costs more after layoffs. The state rules decide how long the choice binds:

• California. A 501(c)(3) electing the reimbursable method must stay on it for five full calendar years. After leaving it, the organization still owes benefits paid to its former employees for three more years. The EDD bills charges every quarter⁠²².
• Texas. A new account has 45 days from the liability notice to elect reimbursing; an existing taxed employer must elect by December 1 for the following year. Either status must be kept at least two years⁠²³. Reimbursing employers repay regular benefits plus 50% of any federal extended benefits, billed quarterly. TWC may require a surety bond but says it has never used that power⁠²⁴. Reimbursing employers may also join a group account to share costs⁠²⁴.

TWC puts the trade-off plainly: a taxed employer knows its rate each January, while a reimbursing employer “never knows their potential liability”⁠²⁴. An organization planning grant-funded positions that may end should weigh the cost of a funding cliff before choosing the reimbursing method.

Building a nonprofit insurance budget

No published total exists, so assemble the budget from its parts. As an illustration only, take a social services nonprofit in Ohio with $200,000 of caseworker payroll, $80,000 of office payroll and 60 volunteers. All figures below are our calculations from the sources cited.

1. Comp from payroll

   Ohio base rates give $200,000 × $0.8856 / $100 = $1,771.20 for class 8864, plus $80,000 × $0.0466 / $100 = $37.28 for clerical. That is $1,808.48 before experience rating and other adjustments⁠¹¹.

2. Volunteer accident

   At Affinity’s 2023 Basic rate, 60 × $3.96 = $237.60, below the $250 minimum premium, so the program would charge $250 where that minimum applies (Affinity says minimum premiums are not available in all states)⁠¹⁰. In Washington the medical-only alternative would be priced by hours: 60 volunteers × 50 hours × $0.0677 = $203.10⁠¹².

3. Liability lines by quote

   General liability, D&O and any abuse endorsement are quoted individually. Insureon names the services offered, property value, annual revenue, numbers of employees and volunteers, and location as the price factors⁠¹. Insureon’s nonprofit medians ($42 GL, $67 D&O, May 2025)⁠¹ are a reference point for small online buyers, not an estimate.

4. Events separately

   A special event endorsement or a separate liquor policy is an added premium⁠¹⁠⁹; in South Carolina a 501(c)(3) licensee’s required liquor aggregate is $500,000 lower⁠⁹.

5. UI as a reserve

   Under the reimbursing method, set aside funds against claims from positions that could end⁠²²⁠²⁴.

Other cost drivers specific to the sector are covered on the general liability and workers’ compensation pages.

Sources

1. 1
   Insureon, Nonprofit insurance cost (updated May 8, 2025) Checked 13 Oct 2026 · Back to text ↑
2. 2
   Insureon, Directors and officers insurance cost (updated July 7, 2026) Checked 13 Oct 2026 · Back to text ↑
3. 3
   Insureon, Employment practices liability insurance cost (updated July 13, 2026) Checked 13 Oct 2026 · Back to text ↑
4. 4
   Legal Information Institute, Cornell Law School (U.S. Code text), 42 U.S.C. § 14503, Limitation on liability for volunteers (Volunteer Protection Act of 1997) Checked 13 Oct 2026 · Back to text ↑
5. 5
   Legal Information Institute, Cornell Law School (U.S. Code text), 42 U.S.C. § 14505, Definitions (Volunteer Protection Act of 1997) Checked 13 Oct 2026 · Back to text ↑
6. 6
   Legal Information Institute, Cornell Law School (U.S. Code text), 42 U.S.C. § 14502, Preemption and election of State nonapplicability Checked 13 Oct 2026 · Back to text ↑
7. 7
   Legal Information Institute, Cornell Law School (U.S. Code text), 42 U.S.C. § 14504, Liability for noneconomic loss Checked 13 Oct 2026 · Back to text ↑
8. 8
   Markel Insurance Company, MGL 102 (10/09), Abuse or molestation coverage endorsement Checked 13 Oct 2026 · Back to text ↑
9. 9
   South Carolina Legislature, S.C. Code Title 61, Chapter 2 (section 61-2-145, as amended effective January 1, 2026) Checked 13 Oct 2026 · Back to text ↑
10. 10
    Affinity Nonprofit (underwritten by Arch Insurance Company), Nonprofit Volunteer Accident Insurance Program, highlight sheet F-14626 (rates as of July 13, 2023) Checked 13 Oct 2026 · Back to text ↑
11. 11
    Ohio Bureau of Workers' Compensation / Ohio Administrative Code, OAC 4123-17-06, Appendix A: base rates effective July 1, 2026 (private employers) Checked 13 Oct 2026 · Back to text ↑
12. 12
    Washington State Department of Labor & Industries, 2026 hourly rates by risk classification Checked 13 Oct 2026 · Back to text ↑
13. 13
    Wyoming Department of Workforce Services, Workers' compensation 2026 industry base rates by classification Checked 13 Oct 2026 · Back to text ↑
14. 14
    U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation, June 2026 (released Sept. 9, 2026) Checked 13 Oct 2026 · Back to text ↑
15. 15
    Washington State Legislature, RCW 51.12.035, Volunteers Checked 13 Oct 2026 · Back to text ↑
16. 16
    California Legislative Information, California Labor Code § 3352 Checked 13 Oct 2026 · Back to text ↑
17. 17
    California Legislative Information, California Labor Code § 3363.6 Checked 13 Oct 2026 · Back to text ↑
18. 18
    Florida Legislature, Florida Statutes 440.02, Definitions Checked 13 Oct 2026 · Back to text ↑
19. 19
    New York State Senate, New York Workers' Compensation Law § 3, Application Checked 13 Oct 2026 · Back to text ↑
20. 20
    Legal Information Institute, Cornell Law School (U.S. Code text), 26 U.S.C. § 3306, Definitions (Federal Unemployment Tax Act) Checked 13 Oct 2026 · Back to text ↑
21. 21
    Legal Information Institute, Cornell Law School (U.S. Code text), 26 U.S.C. § 3309, State law coverage of services performed for nonprofit organizations or governmental entities Checked 13 Oct 2026 · Back to text ↑
22. 22
    California Employment Development Department, Reimbursable method of paying Unemployment Insurance benefits Checked 13 Oct 2026 · Back to text ↑
23. 23
    Texas Workforce Commission, Election to Pay Reimbursements (Form C-6A) Checked 13 Oct 2026 · Back to text ↑
24. 24
    Texas Workforce Commission, Reimbursing and government employers Checked 13 Oct 2026 · Back to text ↑
25. 25
    The Hartford, The who, what and why of directors and officers insurance Checked 13 Oct 2026 · Back to text ↑

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