Q&As

Directors' and Officers' insurance is a specific insurance policy to safeguard board members and the organization for causes of action not covered by a general liability policy. D&O insurance is a separate policy from the general liability policy. An important benefit of D&O insurance is broad coverage for employment-related claims.

If your nonprofit has employees, it is important to determine that your D&O policy provides broad coverage for these types of claims. Typically, a D&O insurance policy will provide both defense and indemnification for the individual directors and officers and the organization. Since each insurance company offers a different policy form with distinctions that could dramatically alter coverage, it is important to check the specific language on your policy.

The Nonprofit Risk Management Center is an organization that spends each day dealing with risk management, board liability, and insurance issues. It has excellent publications and articles on the Web site.

Another reference for providers of insurance for nonprofits is the Alliance of Nonprofits for Insurance.

You may also contact your state association. To find it, go to the National Council of Nonprofit Associations.