Importance of Nonprofit Directors and Officers Liability Coverage

Although nonprofits do not run exactly the same as for-profit businesses, it is still important to make sure the organization is still covered with the right insurance. Nonprofit Directors and Officers Liability Insurance, also known as D&O insurance, can provide the coverage that your nonprofit needs.

There are many reasons that your nonprofit can benefit from D&O insurance, including:

  • It will protect anyone who is involved in the management of the nonprofit organization, including directors, officers, employees, and volunteers from being help personally liable for errors or omissions on the organization.
  • The Volunteer Protection Act only provides a limited amount of coverage, and does not provide coverage for the cost of a legal defense. D&O insurance will help cover the gaps in protection.
  • The directors and officers of a nonprofit organization can be sued for a number of reasons, including improper conduct of volunteers or employees, failure to fulfill the mission, and many more which can jeopardize the organization’s mission and existence.

To protect your nonprofit with the right D&O insurance policy, contact Colorado Nonprofit Insurance Agency.