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Critical Liability Coverage for Nonprofits

Liability Coverage

To ensure that your nonprofit organization is protected against liability, it’s important to have proper coverage. General liability insurance isn’t enough to protect your business if you employ a board of directors to help you meet your goals. Your insurance plan must include provisions for these directors and officers as well.

Directors and Officers Insurance for Nonprofits

If a claim is made against employment practices in your organization, any officer or manager of the company may be included in the claim. D&O insurance is necessary to cover the hefty legal fees and settlements associated with top level individuals.

When discussing options with your insurance agent, make sure your nonprofit D&O insurance policy includes provisions for many different scenarios, including:

         Unethical behavior – A former or current board member can sue or be sued for behavior that is deemed unsuitable or unethical.

         Negligence – Failing to perform promised duties to organizations or individuals can result in legal actions.

         Misrepresentation – If funding was provided for a specific event and it was found that the money wasn’t used for the described purpose, the entity will seek reimbursement for damages.

         Wrongful termination – If a senior executive is dismissed for any number of reasons, they may seek legal action.

Talk with your insurance agent to ensure that you are protected against unwanted legal claims.