How Much Does Nonprofit Business Insurance Cost? 2026 Rates

Nonprofit organizations in the United States typically spend between $500 and $2,000 per year on comprehensive business insurance, which equals about $41 to $160 per month. Actual premiums vary depending on the overall risk profile of the organization. Several factors influence how much coverage will cost, including services offered, size of the organization, location, and claims history.

How Much Does Nonprofit Business Insurance Cost?

On average, nonprofit organizations in the United States spend between $500 and $2,000 annually on a full business insurance package. That equals about $41 to $160 per month. These figures are only estimates, and actual premiums vary depending on the size and scope of your nonprofit.

Every nonprofit faces unique risks, so premiums are never one-size-fits-all. For example, a small administrative charity with limited staff will typically pay less than a nonprofit that works with vulnerable populations or hosts large, high-traffic events.

The services you provide, the value of your property, and your location all play a major role in shaping costs. Nonprofits based in urban areas with higher crime or lawsuit rates often pay more for liability coverage than those in smaller towns.

Several factors influence how much you’ll pay for insurance:

• Services offered – Specialized programs increase professional liability and cyber coverage needs.
• Number of employees – Larger staff raises workers’ compensation requirements.
• Property size and value – Bigger facilities or high-value equipment drive up commercial property premiums.
• Claims history – Frequent past claims raise rates, while a clean record can lower them.
• Business interruption and add-ons – Extra coverage options add to the total bill.

Understanding these variables helps nonprofit leaders estimate insurance needs more accurately and budget for the real costs of protecting their mission. With the right coverage, you can safeguard your staff, volunteers, and community programs without overspending.

Average Nonprofit Business Insurance Costs For Coverage Types

When it comes to protecting your nonprofit business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most nonprofits need.

• General liability insurance: $41 per month
• Employment Practices Liability Insurance: $67 per month
• Business owner’s policy: $85 per month
• Professional liability insurance: $72 per month
• Cyber liability insurance: $51 per month
• Business interruption insurance: $82
• Directors and Officers (D&O) Liability: $75
• Workers’ compensation insurance: $81 per month
• Commercial auto insurance: $133 per month
• Commercial property insurance: $69 per month

General Liability Insurance

The average cost of general liability insurance for a nonprofit business is about $41 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a customer slips on a wet floor and gets injured, this policy would help pay for their medical expenses and your legal defense costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business type (your services), location, office environment (if clients frequently visit your office), contract requirements, and previous claims history.

Average annual premiums by state:

Employment Practices Liability (EPLI) Insurance

The average cost of employment practices liability insurance is $67 per month for nonprofit businesses.

This helps to protect against claims from employees alleging things like wrongful termination or discrimination, or any other acts that violate employee rights. For example, an employee sues your nonprofit business after claiming that they were discriminated against by your technology business. This policy would help cover the legal fees associated with any lawsuits or settlements from those lawsuits.

Average annual premiums by state:

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $85 per month for nonprofits.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your office building, furnishings, and equipment. For instance, if a fire damages your computers and files, the BOP would help cover repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the size of your business, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like cyber protection, directors and officers insurance, equipment breakdown, or extra expense coverage if expenses for a disruptive event go beyond your normal costs.

Average annual premiums by state:

Professional Liability Insurance

The average cost of professional liability insurance for nonprofits is about $72 per month.

Sometimes called errors and omissions, this type of insurance covers claims relating to errors, emissions, negligence, or other financial losses that a customer or client experiences because of the information you provided. For example, if you generate a campaign that claims to provide food to those in need, but incorrect information was included about the recipients of that food campaign and someone sued, this would help cover those costs.

Typical policy limits are $1 million per claim, but higher limits are sometimes required by state laws or client contracts.

Cost depends on the size of your business, the services you offer, the number of years you’ve been in business, coverage limits, and claims history.

Average annual premiums by state:

Cyber Liability Insurance

The average cost of cyber liability insurance for nonprofits is $51 per month.

Cyber liability insurance covers the costs a nonprofit business might incur after a cyber incident. This extends to lost income after a cyber attack, forensic investigations, data recovery costs, regulatory fines, and the costs of informing customers about the attack.

Nonprofits can benefit from this coverage if they handle any sensitive data, or if they want to cover gaps in their insurance.

Costs are based on factors like the size of your organization, the type of client data you handle, and the cybersecurity measures you already have in place.

Average annual premiums by state:

Business Interruption Insurance

The average cost of business interruption insurance for nonprofits is $82 per month.

This is a form of protection against unforeseen and temporary closures to your nonprofit business often caused by covered events like natural disasters. For example, a tornado damages your offices and you have to temporarily close all of your business operations while repairs are being done. This would help replace lost income and ongoing expenses from temporary closures.

Average annual premiums by state:

Directors And Officers (D&O) Liability

The average cost of directors and officers (D&O) liability insurance for a nonprofit business is $75 per month.

This is a form of protection against claims of mismanagement or breach of fiduciary duty for your directors and officers. This is particularly important for larger nonprofits.

For example, your board members get sued by the community for allegedly mismanaging finances. This would help cover those costs.

Average annual premiums by state:

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a nonprofit business is around $81 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an employee trips and falls over a mail cart left in the middle of a walkway at the office, and breaks their ankle, workers’ compensation would cover their hospital visit and part of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform (whether in your office or on-site for each client), your claims history, and any implemented safety programs.

Average annual premiums by state:

Commercial Auto Insurance

The average cost of commercial auto insurance for a nonprofit business is about $133 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, If an employee gets into a T-bone accident while driving to a meeting at a third party location in a company vehicle, this policy would cover the damages and any third-party claims.

Typical policy limits are around $1 million combined single limit (covering both bodily injury and property damage).

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for company services like driving to and from off-site consultations.

Average annual premiums by state:

Commercial Property Insurance

The average cost of commercial property insurance for a nonprofit business, when purchased separately, usually runs $69 per month.

Commercial property insurance covers damage to the agency building and its contents due to fire, theft, vandalism, or certain weather events. For example, if a fire destroys equipment like computers, this policy would pay for repairs or replacement.

Typical policy limits are based on the replacement cost value of the insured property, which could easily reach into the hundreds of thousands depending on your location, building size, and equipment investments.

Premiums are determined by factors like the building’s age and construction type, fire safety systems in place, replacement cost of equipment, neighborhood crime rates, and whether you add endorsements such as professional liability or cyber protection.

Average annual premiums by state:

Nonprofit Business Insurance Costs By Provider

Nonprofit business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on typical liability, property, and directors & officers (D&O) coverage for nonprofit organizations in the U.S. Actual premiums will vary depending on factors such as organization size, services offered, location, coverage limits, and claims history.

What Factors Impact Your Nonprofit Business Insurance Costs?

Insurance premiums for nonprofits are calculated by underwriters who assess your organization’s overall risk profile. From the services you provide to your claims history, several factors determine how much you’ll pay for coverage.

Type Of Services

Not all nonprofits carry the same risks. Organizations that work with children, host public events, or engage in physical activities face higher liability exposure than administrative charities focused on office‑based work.

Location

Where your nonprofit operates plays a major role. Offices in high‑crime, flood‑prone, or urban areas typically pay more for property and liability coverage. Suburban or rural locations with fewer claims often benefit from lower premiums.

Size Of The Operation

The larger your nonprofit, the greater the exposure. More square footage, employees, and revenue increase the likelihood of claims. Workers’ compensation costs also rise with bigger staff counts, especially if employees or volunteers travel frequently to client sites.

Property Value And Equipment

High‑value office equipment, technology, or custom furnishings drive up commercial property premiums. Many nonprofits also add endorsements like cyber insurance to protect sensitive donor or client data, which increases costs but provides essential coverage.

Claims History

Past claims are a key factor. Nonprofits with frequent property or liability claims are considered higher risk, leading to higher rates. A clean claims record, however, can qualify you for discounts.

Policy Limits And Deductibles

Higher policy limits provide stronger protection but increase premiums. Opting for a larger deductible can lower monthly costs, though it raises your out‑of‑pocket responsibility when claims occur.

Optional Endorsements

Add‑ons such as business interruption, cyber liability, or hired/non‑owned auto coverage tailor protection to your needs but raise premiums. These are especially important for nonprofits with off‑site programs, sensitive data, or exposure to natural disasters.

Insurance Provider

Not all insurers price coverage the same way. Some specialize in nonprofit risks and may offer more competitive rates or flexible options. Comparing quotes across multiple carriers is one of the best ways to save.

How To Lower Your Nonprofit Business Insurance Costs

Running a nonprofit can be costly, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are practical strategies to reduce expenses without sacrificing protection.

1. Bundle Your Policies

One of the simplest ways to save is by combining multiple policies. Many insurers offer a Business Owner’s Policy (BOP) that packages general liability and property insurance at a reduced rate. Adding workers’ compensation or professional liability coverage through the same provider can unlock further discounts and streamline administration.

2. Ask About Discounts

Insurers often reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi‑year agreement or paying your premium in full instead of monthly installments.

3. Strengthen Safety Measures

Accidents and liability claims drive up costs for both you and your insurer. Simple steps such as installing non‑slip flooring, keeping walkways clear, and servicing company vehicles regularly help reduce risks. Demonstrating strong safety practices can lower premiums over time.

4. Build A Safer Work Environment

Workers’ compensation costs can be managed by focusing on staff and volunteer safety. Training teams on fire safety procedures, maintaining clear emergency exits, and conducting regular drills reduces injuries. Fewer claims mean lower premiums.

5. Adjust Your Deductible

Opting for a higher deductible is a straightforward way to lower monthly premiums. Just ensure your nonprofit can comfortably cover the out‑of‑pocket amount if a claim arises.