NonProfits-Where and Why Buy D&O

Letter from someone who found me on the internet... ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ July 25, 2011 Dear Scott, I just read your article here: and wonder if you might answer a few questions for me. I am a … [Read more...]

Personal Umbrella Liability and Board Service

I am often questioned by a board of directors member who is concerned with their personal liability for their service on the board.I hear it from board members of non-profit boards and the boards of corporations, alike.The question goes like this:"I have a personal umbrella policy that covers me for my actions on this board. Why do we need … [Read more...]

WSJ – Tis The Season to Be Stupid

I got a short mention in yesterday's Wall Street Journal...I'm always amazed when I find non-profit boards of directors without directors' and officers' insurance. … [Read more...]


Directors' and officers' insurance is coverage against suits for wrongful acts by directors and officers. Lawsuits can be brought by stockholders, investors, employees, and other stakeholders who have been harmed by decisions and actions made by the leadership of an organization.Directors are personally liable for damages their decisions cause. … [Read more...]

Volunteer Immunity Laws

Many states have volunteer immunity statutes that offer protection for liability while doing charitable work. Google your state name and "volunteer immunity."Such laws can not be depended on to provide protection for directors and officers in the non-profit world.Such laws only protect volunteers for state issues - no protection from federal law … [Read more...]

The Limit to the Question of Limits

Reader Question:Hi Scott – I have read your articles at Guidestar and on your site about D&O for nonprofits. What I can’t seem to find is what criteria to use to determine the limit. I’m part of a nonprofit COO group on LinkedIn and asked others in the group. The few answers I received indicated that limits were suggested by the Board in … [Read more...]

How to Buy Directors’ and Officers’ Insurance — For-Profit Edition

Introduction In my insurance consulting work, I'm often asked about directors’ and officers’ insurance, a.k.a. D&O. There is, in many ways, an air of mystery around this kind of policy. Let's get rid of that! First, D&O insurance is protection against a breach of "duty" by the directors and officers. D&O pays for actual or alleged … [Read more...]