Not-for-Profit & Charities Insurance
Tailored insurance for charities, trusts and community organisations
Not-for-profit organisations and charities in New Zealand play a vital role in communities, but they are not immune from the same liability risks that commercial businesses face. Trustees and board members can be personally liable for decisions made in the governance of the organisation. Events, volunteers, community programmes and the care of vulnerable populations all carry exposure that standard personal policies do not cover. Specialist NFP insurance helps charities focus on their mission, not their risks.
Get a QuoteRecommended Insurance for Not-for-Profit & Charities
Public Liability Insurance
Protect your business from third-party injury and property damage claims.
Learn moreProfessional Indemnity Insurance
Protect your business when clients claim your advice or services caused them loss.
Learn moreEmployers Liability Insurance
Cover for employee claims that fall outside ACC — protecting employers from personal liability.
Learn moreStatutory Liability Insurance
Cover for unintentional breaches of New Zealand law — including regulatory investigations and fines.
Learn moreDirectors & Officers Liability Insurance
Personal financial protection for the people who run your company.
Learn moreKey Coverage for Not-for-Profit Businesses
- Trustees' / Directors' Liability Insurance — protects trustees and board members from personal liability
- Management Liability Insurance — covers the organisation for wrongful management acts and employment practices
- Public Liability Insurance — essential for events, premises and community activities
- Voluntary Workers Compensation — covers volunteers injured while working for the organisation
- Professional Indemnity Insurance — important for charities providing advice, counselling or professional services
- Statutory Liability Insurance — covers investigations under the Charities Act and other legislation
Unique Risks for Your Industry
- →Trustee personal liability for governance decisions or financial mismanagement
- →Volunteer injury during events or activities
- →Duty of care failures involving vulnerable clients or programme participants
- →Employment practices claims from paid staff
- →Fundraising event liability and public injury
Typical Premium Range
$1,000 – $8,000 per year depending on organisation size, activities and volunteer numbers
Premiums vary significantly based on your revenue, number of employees, claims history, specific activities and chosen cover levels. These figures are indicative guides — get a tailored quote for accurate pricing.
Insurance for Not-for-Profit and Charitable Organisations
Charities, incorporated societies, trusts, and community organisations play an essential role in communities, but they are not immune from the liability risks that commercial businesses face. Trustees, board members, and volunteers can face personal financial liability. Events and community programmes carry public injury risk. Funded service provision creates contractual insurance obligations.
Trustee and Board Liability: The Personal Risk
The most distinctive insurance need for NFPs is protection for the individuals who govern them. Trustees, board members, and officers can face personal liability for breaches of fiduciary duty, financial mismanagement, employment decisions, governance failures, and PCBU duties under the Health and Safety at Work Act 2015.
Directors and officers liability insurance (called trustee liability or management liability in the NFP context) provides personal financial protection for these individuals. Without it, a trustee faces funding their own defence from personal assets — a deterrent to good governance that harms organisations and communities.
Any person serving as a trustee, board member, committee member, or officer of an incorporated or registered charity faces this exposure — from high-profile charities with large budgets to small community sports clubs with three-person committees.
Public Liability: Events, Premises, and Community Activities
Most charitable organisations interact regularly with the public. Public liability insurance protects against participant injury at events, visitor injury at premises, third-party property damage, and claims arising from programmes involving physical activity or care.
For organisations working with vulnerable populations — children, elderly, or people with disabilities — public liability should include an appropriate limit to reflect the potential scale of a claim.
Events: Specific Considerations
Large or high-risk events may need event-specific liability cover beyond your annual policy. Confirm whether your policy covers the specific activities undertaken, extends to volunteers, and includes food or alcohol service if these are part of the event.
Volunteer Coverage: An Often-Overlooked Gap
Your public liability policy protects third parties against injury caused by your volunteers — but it typically does not cover the volunteers themselves if they are injured while working for you. Voluntary workers accident insurance fills this gap. For organisations running physical activities, construction projects, or outdoor programmes, uninsured volunteer injury is a genuine exposure.
Professional Indemnity for Service-Providing Organisations
NFPs that deliver advice, counselling, social support, legal assistance, mental health services, or professional programmes carry professional indemnity insurance exposure. If a programme participant suffers harm and alleges negligence in your service delivery, a PI claim can follow. PI insurance covers your legal defence costs and compensation, regardless of whether the claim has merit.
Statutory Liability for Charities
Statutory liability insurance covers the costs of defending unintentional breaches of legislation:
- Charities Act 2005 compliance requirements
- Privacy Act 2020 obligations regarding beneficiary and donor data
- Health and Safety at Work Act 2015 duties as a PCBU
- Employment Relations Act requirements
Funded Contracts: Insurance as a Requirement
Many government funding contracts and service level agreements require recipient organisations to maintain specific insurance covers as a condition of funding — commonly $2–5 million public liability, professional indemnity for service delivery organisations, and employers liability. Review your funding contracts carefully before renewal.
Typical Premium Ranges
- Small community organisation (< 10 volunteers): $800 – $2,500 pa
- Medium charity (paid staff, regular events, service delivery): $2,500 – $7,000 pa
- Large charity or incorporated society: $5,000 – $20,000 pa
See: professional services insurance, small business insurance, directors and officers insurance, and professional indemnity insurance.
Not-for-Profit & Charities Insurance — FAQs
Can trustees of a charity be held personally liable?
Yes. Trustees and board members of New Zealand charities and incorporated societies can face personal liability for decisions made in their governance role, including financial mismanagement, breach of fiduciary duty, wrongful dismissal of employees, and failure to comply with charity law. Trustee liability insurance (also called management liability or D&O for NFPs) protects individuals from personal financial exposure in these situations.
Are our volunteers covered under our public liability policy?
Public liability covers third-party injury or damage caused by your volunteers, but it typically does not cover injury to the volunteers themselves. Volunteer workers compensation insurance (or a voluntary workers personal accident policy) provides cover if a volunteer is injured while performing activities on behalf of the organisation. This is particularly important for charities running physical events, construction projects or community programmes.
Do we need professional indemnity if we provide counselling or support services?
Yes. Any not-for-profit that provides advice, counselling, social support, mentoring or professional services faces the risk of claims arising from that service. A participant who suffers harm and alleges negligence in the services provided can make a claim against the organisation. Professional indemnity covers legal defence costs and any compensation awarded, and is strongly recommended for organisations working with at-risk populations.
Our charity runs annual fundraising events — what insurance do we need?
Events create public liability exposure from participant injury, third-party property damage and other incidents. Your annual public liability policy should cover regular events, but large or high-risk events (concerts, sports events, food markets) may need event-specific cover. Consider also public cancellation insurance if the event revenue is significant and cancellation due to weather or other causes would cause financial hardship.
We receive government funding — does this affect our insurance requirements?
Many government funding contracts and service level agreements require recipient organisations to hold specific types and levels of insurance as a condition of funding. These requirements are typically set out in the funding contract and may specify minimum public liability limits, professional indemnity or other covers. Review your funding contracts carefully and ensure your insurance programme meets all contractual obligations.
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