What insurance is a Georgia nonprofit legally required to carry?

A Georgia nonprofit is legally required to carry workers compensation insurance once it has the required number of employees, just like any other employer. Beyond that, most other coverages are not strictly mandated by law, but several are required in practice by contracts, landlords, and grant agreements.

The legal requirement to know is workers compensation. Under Georgia law, an employer with three or more employees, including part-time workers, must carry it. Nonprofits are not exempt. Volunteers generally do not count toward that total, but paid staff do.

Other coverages are commonly required even though no statute mandates them:

• Commercial auto: Required if the nonprofit owns vehicles, and Georgia auto liability minimums apply.
• General liability: Frequently required by landlords, event venues, and grant funders before they will work with you.
• Directors and officers: Often expected by board members and funders, and the practical way to protect volunteer leaders.

Example: a Georgia nonprofit with four paid employees must carry workers compensation by law. It also rents office space, and the lease requires a $1 million general liability policy. So while only workers compensation is legally mandated, the nonprofit effectively needs both to operate.

The lesson is to separate what the law requires from what your obligations require. Many nonprofits need a rounded program well beyond the statutory minimum. Learn more about workers compensation insurance. To confirm what your nonprofit is required to carry and what it should add, request a free coverage review.