Just as directors and officers need insurance coverage when in for-profit organizations, the same can be true for those who work at a nonprofit. Here is why D&O for nonprofits is important to have.
Coverage For a Wide Range of Individuals
In the case of nonprofits, the insurance coverage can extend beyond directors and officers, according to VIS. This can include all past, present and future individuals who will hold a role as director or officer, along with volunteers, employees, and committee members, just to name a few. Having such a wide variety of people protected under the insurance can help the nonprofit in the long run.
Protection in Case of Being Sued
It is important for many nonprofits that they have adequate protection in place so they can avoid being sued and stay away from bad publicity. D&O for nonprofits can also include protection against previous acts, which can make things smoother to manage.
Nonprofits that offer D&O coverage often go beyond protecting directors and officers alone. This coverage can extend to others who work and volunteer with the organization, simplifying things for the nonprofit. It can also provide protection against prior acts should they worry about getting sued for something that happened a long time ago.