Does Georgia law require nonprofit insurance?

Georgia law does not require a nonprofit to hold one blanket insurance policy. Two specific mandates apply instead, based on what the organization actually does. A nonprofit that regularly has 3 or more employees, meaning paid staff rather than volunteers, must carry workers' compensation insurance under O.C.G.A. 34-9-2(a)(2). Workers' compensation pays an injured employee's medical bills and a portion of lost wages after a workplace injury, regardless of who was at fault. Separately, any vehicle titled to the nonprofit must carry auto liability insurance of at least 25/50/25 under O.C.G.A. 33-34-4: $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage.

Example: a Georgia food pantry with four paid staff and one delivery van meets both thresholds at once. State law requires workers' compensation for the staff and at least 25/50/25 auto liability on the van, even if the pantry has never filed a claim.

Coverages outside these two mandates, such as general liability, commercial property, or directors and officers (D&O) liability, are not required by Georgia statute. They are commonly required by contract instead. A landlord typically requires proof of general liability before signing a lease. A grant funder or event venue may require a certificate of insurance naming them as an additional insured. A lender financing a building purchase may require property coverage. A nonprofit with no statutory insurance obligation beyond workers' compensation and auto liability can still face several insurance requirements layered on by landlords, funders, and lenders.

This distinction between what Georgia law mandates and what contracts require matters when a nonprofit sets its insurance budget. A newly formed 501(c)(3) with two volunteers and no vehicles may have zero Georgia insurance mandates, yet still carry general liability and D&O to meet a board's fiduciary duty or a grant agreement's terms.

The employee count that triggers the workers' compensation requirement is explained further in how many employees before a Georgia nonprofit needs workers' compensation. Nonprofits that serve alcohol at fundraisers face a related exposure covered in does a Georgia nonprofit need liquor liability for a fundraiser. A full breakdown of how these coverages bundle together is on the Georgia nonprofit insurance page and the nonprofit insurance guide. Mapping a specific nonprofit's staff count, vehicles, and contracts against what applies is available through a coverage review.