Nonprofit insurance in North Carolina

What insurance does a NC nonprofit need?

A North Carolina nonprofit typically needs general liability (for injuries at events and facilities), directors and officers (D&O) to protect board members, employment practices liability (EPLI), commercial property for owned or leased space, crime or fidelity coverage for employee or volunteer theft, volunteer coverage, and workers' compensation for paid employees. The specific mix depends on the organization's size and activities.

Do NC nonprofit board members need D&O insurance?

Yes. Directors and officers (D&O) insurance protects board members from personal liability for decisions made in their board capacity. Without D&O, board members can be personally sued for organizational decisions. Most experienced nonprofit board members should insist on D&O coverage before agreeing to serve. It protects them, not just the organization.

Are NC nonprofit volunteers covered by workers' compensation?

No. Volunteers are not employees and are not covered by workers' compensation in North Carolina. If a volunteer is injured while performing tasks for your organization, workers' comp will not pay. A volunteer accident coverage policy or volunteer liability endorsement is needed to fill this gap. Organizations that rely heavily on volunteers should prioritize this coverage.

Why do NC nonprofits need crime or fidelity coverage?

Employee and volunteer theft is more common than most nonprofits expect. Nonprofit accounting controls are often less rigorous than for-profit businesses, and organizations that handle cash donations, client funds, or grant money are attractive targets. Crime coverage, also called fidelity bonding, covers theft by employees and sometimes volunteers. Many grant agreements require it.

Do NC grants require specific insurance?

Yes. Many foundations, government agencies, and corporate grantors require specific insurance coverage as a condition of grant awards. Common requirements include general liability with specified limits, workers' compensation, fidelity bonding or crime coverage, and sometimes D&O. Review any grant agreement's insurance section before submitting your application and confirm your policy meets the requirements.