Benefits of Getting Your Nonprofit Insured

Why your nonprofit organization needs Directors and Officers Liability Insurance. 

Directors and Officers liability insurance, or D&O, is the type of coverage you should be looking into to protect your nonprofit’s board members. Nonprofit D&O liability insurance helps to cover defense costs, settlements, and judgments arising out of lawsuits and wrongful act allegations brought against a nonprofit organization. Often, nonprofits do not realize that their board members could be personally held liable for the actions of the organization.

Quite simply, D&O liability insurance is a necessity for every nonprofit organization. Not having adequate coverage for a claim filed against a board member can be catastrophic. Not only are legal expenses sky high, but many D&O claims end up costing over $100,000.

Believe it or not, but choosing the cheapest insurance policy isn’t always the most cost-effective for your nonprofit organization. You may be paying a lower premium, but the deductible could be incredibly high. If a claim was filed, this high out-of-pocket cost could leave your organization reeling. The key is to find a balance!

Work out what your specific organization’s needs are, and then examine what the different policy providers have to offer. Finding an agent that you trust to help you navigate comparisons across the different policy providers can be especially helpful.

Once you’ve picked a policy provider, make sure you ask questions and completely understand your coverage, limits, and deductibles. Bear in mind that D&O liability insurance doesn’t cover everything. For example, tax liabilities and criminal acts are commonly excluded from coverage. Luckily, you can put preventative measures in place to protect your organization from facing such disasters.

Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298. Make sure that your nonprofit is properly covered. We will work with you to ensure you are getting the most out of your coverage.