When you run a nonprofit, you rely on your volunteers to bring your organization to life. Though your volunteers are the main workforce for your organization, your board of directors is responsible for making sure your nonprofit can stay around for years to come. These directors and officers need dedicated insurance policies to protect your nonprofit’s finances. A comprehensive nonprofit D&O policy will help.
The Hallmarks of a Great Policy
A comprehensive D&O policy works to protect your board of directors and senior officers from liability in the course of their duties. The right policy for your nonprofit should include the following characteristics:
- Protection for all past, current, and future staff members
- Liability coverage limits of $5 million
- Affordable deductibles
- Coverage for prior acts
- Customizable coverage options
- Coverage cancellation protection
Without these characteristics, the D&O policy will leave gaps in your coverage.
Why the Policy Matters
Without a nonprofit D&O policy in place, your organization is at risk for liability lawsuits that can put your operating budget in jeopardy. If a member of your staff, board of directors or even your team of volunteers acts inappropriately or causes damage to a member of the community, your organization is liable for the damages.
A comprehensive D&O insurance policy will help you cover those costs and protects you from paying out-of-pocket legal fees for every incident. If you don’t already have coverage, invest in a policy as soon as possible. This way, your organization will be protected at all times.