Why Insurance Matters for Every American Legion Post

American Legion Posts exist to serve veterans, families, and communities. That mission brings opportunity, visibility, and responsibility. Every meeting, fundraiser, youth program, and community event creates both impact and risk. Strong Posts understand that protecting the organization is part of protecting the mission.

Risk management is not about fear. It is about stewardship. Members and officers are trusted to protect volunteers, guests, and the organization itself so the Post can continue serving for generations.

Many members assume that being part of a national organization automatically provides protection; however, since each Post is its own legal entity it is responsible for its own insurance coverage. Without proper insurance, a single lawsuit or major incident could place your Post’s funds, property, and even the personal assets of officers at risk. Nonprofit organizations are frequently named in lawsuits involving injuries, property damage, governance disputes, employment issues, and alcohol-related incidents. Insurance is one of the most important tools a Post has to guard against these risks.

The exact coverage a Post needs will depend on its activities, facilities, and programs, but most Posts should consider and review several key types of protection.

General Liability Insurance

• Covers injuries or property damage connected to Post activities
• Protects meetings, fundraisers, and community events
• Often required when renting facilities or hosting vendors

Directors and Officers (D&O) Insurance

• Protects officers and board members from personal liability
• Covers claims involving governance decisions or disputes
• Helps ensure volunteers can serve without risking personal finances

Treasurer Bonds / Crime Coverage (Fidelity Bonds)

• Protects the Post if money is stolen or misused
• Covers theft, embezzlement, fraud, or forgery
• Should include anyone with access to Post finances

It is important to understand that D&O insurance does not replace a treasurer bond. D&O protects leaders when decisions are challenged, while a fidelity bond protects the Post when funds are stolen. Together, these cover two of the largest financial risks facing nonprofit organizations.

Property Insurance

• Protects Post buildings, equipment, and supplies
• Helps recover from fire, theft, or storm damage
• Essential for Posts that own facilities

Special Event Insurance

• Covers temporary risks for large events and fundraisers
• Helps address risks from vendors, crowds, and special activities

Posts that operate lounges, bars, or social clubs have additional responsibilities. Alcohol service significantly increases liability risk and requires specialized coverage. Liquor liability insurance, workers’ compensation for paid staff, and employment practices liability are especially important for these Posts. Courts often hold organizations responsible for incidents involving intoxication or overservice, and operating without proper coverage can place the entire Post at risk.

Finding Nonprofit Insurance in Washington
Many Posts do not know where to begin when shopping for insurance, but there are insurers and brokers who specialize in nonprofit organizations and volunteer groups. At the end of this article are some suggestions of places to try. This list was curated by AI; inclusion does not imply American Legion and/or Department of Washington endorsement. This list is provided as a starting point. Posts should compare multiple quotes and work with an agent experienced in nonprofit organizations and volunteer-run operations.

When contacting an insurance broker, Posts should clearly describe their activities and facilities. Be prepared to discuss whether the Post owns a building, rents space, hosts public events, operates a bar or lounge, employs staff, or runs youth programs. This helps the broker match the Post with insurers experienced in nonprofit and veteran organizations.

Insurance should not be viewed as an administrative burden. It is a leadership responsibility. Proactive Posts plan ahead so volunteers feel safe serving, communities feel confident participating, and officers can lead without fear of personal risk.

Taking time to review coverage, ask questions, and work with knowledgeable professionals helps ensure the Post can continue its mission without interruption. Protecting the Post protects the mission.

Practical Steps Every Post Can Take

1. Review insurance policies every year.
2. Confirm coverage matches actual activities.
3. Ensure D&O and fidelity bond coverage are in place.
4. Evaluate risks from facilities, events, and alcohol service.
5. Consult insurance professionals familiar with nonprofits.

Small steps today can prevent major problems tomorrow.

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SEATTLE / PUGET SOUND AREA
Insurance Services of Washington Inc.
Redmond, WA
Independent agency that places commercial and nonprofit insurance with multiple carriers.

Belltown Insurance Group Inc
Seattle, WA
Commercial insurance agency experienced with business and nonprofit risk coverage.

Washington Brokerage
Seattle, WA
Independent brokerage that shops multiple insurers for business and nonprofit policies.

Blue Lion Insurance Brokers
Snohomish, WA
Independent agency specializing in commercial and business insurance coverage.

The Miller Insurance Agency of Washington
Everett, WA
A large independent agency that can place business, property, and liability coverage.

STATEWIDE / REGIONAL AGENCIES
Policy Masters Insurance WA
Seattle, WA
An independent agency able to compare multiple carriers for nonprofit and business coverage.

Social Coverage Insurance WA
Everett, WA
Local agency serving Washington organizations and businesses.

Blue Horizon Insurance and Financial Services
Wenatchee, WA
Independent agency that represents multiple carriers and shops coverage options.