Directors and Officers Insurance for Vocational Workshop Nonprofit Organizations
Directors and Officers Insurance (also called D&O or Officers and Directors Insurance) protects your board of directors and corporate offices from lawsuits that claim they…
- Were negligent in their official duties as a board member.
- Mistreated employees.
- Mishandled or misused money.
If one of your employees files a harassment suit against a member of your board, Directors and Officers Insurance can pay for your legal defense. If a dispute about how to invest your organization’s money leads to a lawsuit, D&O coverage can protect your board from these costs.
Without D&O insurance, board members would have to pay their own legal expenses. Prospective board members will want your organization to have D&O coverage to protect their personal assets.
In this way, D&O is an important part of recruiting new board members to your organization. For more information about the relationship between insurance and board recruitment, check out this article .