In this day and age of liability lawsuits, you must protect your assests.  If someone comes to a meeting or sponsored activity and breaks an ankle falling over a piece of equipment and seeks to hold the club responsible, are you protected by insurance?

Some common insurance coverages:
 

Damage to club-owned property
Employee/member dishonesty
General liability
The new law (42 USCA Sec. 14501 et seq.) generally provides that volunteers
will not be personally liable for their acts or omissions if they are acting within
the scope of their responsibility for the organization and the harm is "not caused by
willful or criminal misconduct, gross negligence, reckless misconduct, or a conscious, flagrant indifference to the rights or safety of the individual harmed." soc.org.nonprofit

Workers' Compensation
Directors' and Officers' Liability

Director & Officer (D&O) liability is necessary as a condition of "sanctioning" the employee's board service as a representative of the company. The other key coverage to have, regardless of size, is some form of employee theft insurance or a fidelity bond to insure the nonprofit against larceny,embezzlement, etc., by employees. D&O and fidelity bonding/insurance is a cheap price to pay for the stability and sustainability it adds to your organization.