What is d & o insurance for nonprofits?

Directors and Officers (D&O) insurance is a type of liability insurance policy that provides coverage for claims made against individuals serving as directors and officers of a nonprofit organization. This coverage protects these individuals from personal financial losses resulting from legal actions brought against them for alleged wrongful acts in their role as directors or officers of the organization.

D&O insurance for nonprofits typically covers legal fees, settlements, and judgments that result from claims of mismanagement, neglect, or breach of fiduciary duty. This type of insurance is essential for nonprofit organizations as it helps attract qualified individuals to serve on their board of directors and provides financial protection for those individuals in the event of a lawsuit.

It is important for nonprofit organizations to carefully review their D&O insurance policy to ensure it provides adequate coverage for their specific needs. Nonprofits should also regularly review and update their policy to account for changes in their organization's structure, activities, and risks.

Overall, D&O insurance for nonprofits is a valuable tool to protect the individuals who serve on their boards and help ensure the organization's continued success and sustainability.