Directors and Officers Insurance for Youth Programs, Community Service Organizations, Community Health Centers, Community Recreation Services, and Youth Organizations
Directors and Officers Insurance (D&O Insurance) is an important asset for attracting top-quality members to your nonprofit’s board of directors.
A successful, well-connected board is one common trait to most successful nonprofits. Board members can recruit new funding sources, make partnerships, and guide your organization through its long-term planning.
Directors and Officers insurance can help attract high quality board members because it protects their liabilities. D&O insurance can pay for your board’s legal defense when another party claims it…
- Misused funds.
- Mistreated employees (harassment, wrongful termination, etc.).
- Was negligent in its duties.
Often these lawsuits have no validity. But even if the other party is wrong to make accusations against your board of directors, someone still has to pay for the legal defense. Many nonprofits can’t afford these expenses and board members or other officers may have to pay for their own legal defense.