Nonprofit Insurance Coverage: You Need More Than a Directors and Officers Policy

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Question:

How protected is our nonprofit's board if we have directors and officers liability insurance? How can we protect our organization?

Answer:

Having appropriate insurance coverage—not just directors and officers liability insurance but all relevant insurance policies (such as property insurance, commercial general liability insurance, errors and omissions insurance, fiduciary liability insurance, and meeting cancellation insurance [in certain circumstances], among others)—is a critical risk-management tool for any nonprofit. Such policies help to protect both the organization and its staff and volunteer leaders against the risks that arise in the functioning of every nonprofit. These policies function collectively as a safety net in the event that other risk management practices fail, sometimes through no fault of the organization or its management.

Originally published in March 2014 edition of GuideStar.

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Topics:  Board of Directors, D&O Insurance, Non-Profits, Professional Liability

Published In: Business Organization Updates, Insurance Updates, Nonprofits Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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