​Non – Profit Directors and Officers Liability (D&O)

Often times non-profit companies will  pass on Directors and Officers insurance because they don't think they need it. In reality non-profits are at risk and have a high potential for claims. Most non-profit Directors and Officers have very limited knowledge about the business activities or the legal responsibilities associated with their position.

You might be thinking "What roles do non-profit Directors and Officers usually play?"

1. Maintain financial stability to accomplish the goals and objectives set out by the organization.
2. Ongoing staffing, planning , and operations of the organization.
3. Reporting performance to various key stakeholders.

Common Misconceptions:​
Non-profits often think they are immune or protected by government from legal action. In reality there is very little or no protection for the Directors and Officers. General Liability insurance will not cover Directors and Officers liability lawsuits. A general liability policy will usually only cover bodily injury and property damage. 

You might think Directors and Officers Insurance is expensive and can be cut from the budget. In reality, it should be essential and insurance premiums are relatively low in comparison to for-profit companies. 

Next Steps: 

Make sure Directors and Officers liability insurance is in place or on the agenda for your non-profit.

Get advice on the key features of a Directors and Officers policy by speaking with an experience broker.