Insurance that protects you against liability for the decisions made by your organization’s directors and officers is vital to any nonprofit, just as it is to any corporation that depends on a traditional hierarchy for its chain of command. The provisions needed are similar, but since nonprofits typically have social or charitable missions, there are some key differences. Still, the basic terms of nonprofit D&O coverage will look familiar if you have ever shopped for corporate D&O insurance.
- Crime & fidelity coverage
- Employment practices insurance
- Fiduciary liability protection
These three core areas of protection are designed to meet the basic needs of any nonprofit, but sometimes it pays to go for an even more specialized program.
Nonprofit D&O Programs by Type
When you go looking for specialized D&O coverage providers that carry to nonprofits, you’ll find two types of programs out there. One attempts to build in enough flexibility to meet you where your needs are at, no matter what kind of nonprofit you run. The other builds out specialized subprograms by field, catering to labor organizations, museums & cultural centers, charities, and grant foundations separately Some of the most experienced nonprofit D&O coverage providers have a half dozen or more template options built from their experience working with nonprofits that share your mission. That sign of experience is unmistakable, so look for it when you need a quote.