---
title: The Importance of Professional Liability Insurance for Nonprofits
description: The Importance of Professional Liability Insurance for Nonprofits
---

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# The Importance of Professional Liability Insurance for Nonprofits

[Mike Smith](https://blog.plrisk.com/author/mike-smith)

 Sep 30, 2014, 3:06:54 PM

## [![The Importance of Professional Liability Insurance for Nonprofits](https://static.hsstatic.net/BlogImporterAssetsUI/ex/missing-image.png)](https://blog.plrisk.com/hubfs/Imported_Blog_Media/The-Importance-of-Professional-Liability-Insurance-for-Nonprofits-1.jpg)The Importance of Professional Liability Insurance for Nonprofits

If you have clients who work in health care, human services, or some type of counseling, chances are that some of these professionals work in the nonprofit sector. These companies are especially vulnerable to risks, and as a result have a strong need for Professional Liability Insurance, or Errors & Omissions.

Being in the nonprofit industry, it’s quite possible for your clients to offer some type of advice or service that simply falls flat of helping the end user, or worse, causes harm to others. Even if unintentional or unfounded, claims of this type would be especially devastating to nonprofits, in a financial sense.

Professional liability insurance for nonprofits protects your clients against liabilities resulting from mismanagement of their organization, but also any mistakes or claims that come as a result of the organization’s staff or volunteers.

It’s important to note that Professional Liability Insurance for Nonprofits, while important, is not the only coverage your clients should obtain, as it may not apply to certain scenarios. Other polices that are essential to have include [Directors and Officers Insurance](http://www.plrisk.com/products/directors-officers/), and [Employment Practices Liability](http://www.plrisk.com/products/employment-practices/) (EPL).

Directors and officers insurance offers protection for the officers of your clients’ nonprofit, who could be personally named in a lawsuit against the nonprofit alleging fraud or financial mismanagement. EPL  covers workplace related claims such as discrimination, harassment, or wrongful termination.

At [**PLRisk Advisors**](http://www.plrisk.com/), we understand the unique risks your clients face, which is why we offer comprehensive [Professional Liability Insurance for Nonprofits](http://www.plrisk.com/products/errors-omissions/) in a number of industries. Please contact us today to learn more at **(855) 403-5982.**

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