D&O Insurance 101
Understanding Directors and Officers Insurance for Nonprofits

At some point you may decide to incorporate your nonprofit group and take your cause to the next level. Maybe you already have. Either way, your organization is going to run into some new concerns as it grows in scope and size, and among these concerns is the liability your board of directors takes on.

Because many nonprofit founders may not be familiar with the corporate world and how directors and officers fit into the picture, we’ve compiled some information to help you get up to speed. Here you’ll find articles about the personal liability board members may have, as well as why they might want you to carry Directors and Officers Insurance. Talented directors can take your nonprofit to amazing heights, so it’s always a good idea to keep the best and brightest on board (no pun intended).

Have a look at the risk management tips and D&O insight offered below.

When Does a Nonprofit Need D&O Insurance?

The short answer: when you have a board of directors. See more about why you may want this type of policy and when a nonprofit generally acquires a board.

Why Your Board Might Demand You Carry D&O Insurance

Board members are exposed to a number of personal liabilities, even if they’re volunteering their time for a nonprofit organization. Convincing a candidate to become a board member can be a matter of whether or not you have insurance.

What Should Your Directors and Officers Policy Cover?

A D&O policy can offer protection against a few different kinds of claims and lawsuits. Learn what you should know about the policy before purchasing it for your nonprofit.

Understanding the 3 Layers of D&O Coverage

You have some choices when deciding on D&O coverage, mostly depending on how extensive you want your coverage to be. Take a look at how this insurance may protect your board as well as the organization itself.

Who Can Bring a Directors and Officers Claim against a Nonprofit?

Anyone who works with or for your organization could potentially bring a lawsuit against your board. Check out the most common sources of D&O claims.

How Much Does a Directors and Officers Lawsuit Cost?

Is the threat of a lawsuit really that big a deal? Absolutely. The cost of a lawsuit can easily overwhelm a board member’s personal finances and even cause a whole organization to go bankrupt if not prepared.

What Types of D&O Claims Are Most Often Filed against Nonprofit Organizations?

The most frequent legal concern for a nonprofit’s board of directors relates to employee issues. Learn other common causes of D&O lawsuits and how to avoid them.

If you still have questions about Directors and Officers Insurance, other insurance policies, or risk management in general, be sure to talk to one of our agents.

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