Insurance for Nonprofit Transportation Services
Operating a nonprofit transportation service requires thoughtful planning—especially when it comes to insurance. The right coverage protects your riders, your volunteers or staff, and your organization from liability and unforeseen events. The information below outlines the key types of insurance every community-based transportation service should consider.
Essential Types of Insurance for Transportation Providers
- General Liability
This policy protects your organization against claims of bodily injury, property damage, and personal injury that may occur during operations. It’s essential for covering legal fees, settlements, and medical costs if an incident occurs. - Commercial Auto Insurance
If your organization owns vehicles used for transportation services, commercial auto insurance is required. It covers vehicle damage, liability for accidents, and medical costs for drivers and passengers involved in a crash. - Workers’ Compensation Insurance
If your nonprofit employs drivers, dispatchers, or administrative staff, workers’ compensation insurance is required by law in most states. This coverage helps pay for medical expenses and lost wages in case of a work-related injury. - Umbrella Liability Insurance
For additional coverage beyond your standard liability policies, umbrella insurance provides extra financial protection in case of large claims or lawsuits.
Finding the Right Insurance Provider
When selecting insurance for your transportation service, consider:
- State and Local Requirements – Insurance laws vary by state, so ensure compliance with local regulations.
- Risk Assessment – Work with an insurance broker who understands the specific risks of nonprofit transportation.
- Coverage Limits – Make sure your policy limits align with your organization’s operational size and exposure to liability.
Insurance Guidance for Volunteer Drivers
Insurance is one of the most common concerns for people considering volunteer driving. Policies and requirements vary significantly from state to state—and locating clear, accurate information is often difficult.
To help address this challenge, ITNAmerica maintains a 50 State Policy Index, which includes up-to-date information on insurance regulations and policies that affect volunteer drivers. If you’re considering volunteering, or if you manage a program that relies on volunteer drivers, we encourage you to explore this resource to better understand your state requirements.
