There are insurance benefits and limitations to the different models of fiscal sponsorship.
Model A (direct) fiscal sponsorship allows un-incorporated nonprofits and charitable programs to be covered under our general and professional liability insurance. Additionally, Model A programs do not have a board of directors and therefore do not require D&O insurance.
We may add Model F (non-direct/technical assistance) fiscally sponsored organizations to our policy as an additional insured. This method, however, sets certain limits that are not adequate for stand-alone nonprofit organizations. We recommend checking with your state's nonprofit association for recommendations on insurance options.
Find Your State Association
Get started at https://www.councilofnonprofits.org/find-your-state-association.