Directors and Officers Insurance for Food Pantries, Soup Kitchens, and Other Community Service Food Organizations
Directors and Officers Insurance (aka D&O Insurance) can pay for lawsuits against your board of directors and other corporate officers.
Protecting your board’s liabilities is important not just for the obvious reason that a lawsuit is expensive. Many prospective board members will look to see if your organization will cover their liabilities. In this sense, D&O insurance is also a recruitment tool for nonprofits.
What is D&O insurance? Directors and Officers Insurance pays for lawsuits that claim your board acted improperly. Such claims might include allegations that your board…
- Misused or mishandled funds.
- Mistreated, harassed, or improperly terminated employees.
- Was negligent in its duties.
Let’s say your organization receives a major donation. After you stop celebrating, you know there will be disagreement about how to invest or spend that money. When someone alleges the board misused the funds, D&O Insurance can pay for the lawsuit.