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Directors and Officers Insurance

Protect Your Decision Makers

D&O protects board members and officers against legal expenses if they are sued for a decision, made on behalf of the organization resulting in a financial loss.

An effective D&O policy should provide broad coverage and include employment related actions, including discrimination, harassment, wrongful termination, and failure to hire. It should pay defense costs as they are incurred.

Reasons to Consider

  • Any nonprofit with a board of directors or advisory, including nonprofits with no employees.
  • Nonprofits who wish to protect highly desired board members and officers.
  • D&O help attracts top talent who might otherwise decline if they believe their personal assets were at risk.

Coverage In Action

  • Accusations of mismanaged funds. If board members are accused of making poor financial decision or misusing the nonprofit’s funds, they could be sued. Even if a lawsuit is without merit, attorney’s fees and court costs could significantly drain the nonprofits finances.
  • Failure to meet regulatory standards. If your nonprofit organization fails to meet regulatory standards, your board of directors may be targeted or blamed. D&O insurance can help pay for the cost of hiring an attorney and other legal expenses that result from a lack of compliance with industry standards or regulations.
  • Failure to perform official duties. Directors and officers have influence and limited control of the nonprofit, as such they are considered fiduciaries and when something goes wrong, the may take the responsibility. If a board member is sued for failing to perform fiduciary duties or fulfill legal requirements, D&O protection can help pay for the legal cost of hiring a legal representation and other expenses.

Common Coverage Limits

  • $1 million per occurrence and up to $2 million in aggregate.
  • Umbrella limits up to $10 million.