The Benefits of Getting Your Non-Profit Insured
Directors and Officers liability insurance, or D&O, is the type of coverage you should look into purchasing for your non-profit’s board members. Nonprofit Directors & Officers (D&O) Liability insurance helps cover the defense costs, settlements and judgments arising out of lawsuits and wrongful act allegations brought against a nonprofit organization. Many times, nonprofits may not even realize that their board members may be held personally liable for the actions of the organization.
Not having adequate coverage for a claim filed against a board member can leave you with crippling legal costs averaging around $35,000. In fact, one out of ten D&O claims will cost over $100,000!
So, now that we’ve convinced you D&O coverage is important, let’s look at how to go about making the best purchase for you.
Yes, you can find a great, relatively inexpensive insurance policy, but you could end up paying more money later down the road. In fact, most insurance policies with low premiums offer great prices because they have a high deductible. They key is finding a balance. Realistically examine what your specific organization’s needs are, and then examine what the different policy providers have to offer; that is how you make the best decision in picking a great D&O plan. Finding an agent you trust to help you navigate comparisons across the different policy providers can be especially helpful.
After you pick a policy provider, make sure you ask questions and completely understand what your coverage is. D&O insurance doesn’t cover everything. For instance, tax liabilities and criminal acts can’t legally be covered under these plans, but having this coverage will protect you in many other scenarios. This insurance coverage is a must have for any non-profit organization and should be considered a priority. Don’t leave yourself, or your members unprotected needlessly!
For more information, contact your trusted local insurance agent, Sandi Purinton with The Insurance Connection. We help our clients Live Better. Save More. That’s what we try to help you do at The Insurance Connection. Offering the benefits of an independent agency, The Insurance Connection carefully considers your individual insurance needs and finds the right coverage for the best price for you, all with a smile. Contact us today at 678-439-8757 or firstname.lastname@example.org to get free insurance quotes
This material is for information only and is not intended to provide legal or professional advice. You are encouraged to consult with your own attorney or other expert consultants for a professional opinion specific to your situation. This information is only a general description of the available coverages and is not a contract. In an effort to keep your policy coverage affordable, the actual policy contains certain limitations and exclusions. Please refer to your insurance policy for the pertinent contract language and coverages. Some coverages and discounts are not available in all states. The Insurance Connection welcomes all applications, without regard to religion, race, color, national origin, sex, handicap or familial status.