Nonprofit Directors and Officers Insurance – Article

Many nonprofits wonder if directors’ and officers’ liability insurance is a must-have, just like bylaws or a conflict-of-interest policy, especially as even the smallest organization will have to pay upward of $1,200 per year for it.Directors’ and officers’ liability insurance—known as D&O insurance—is protection against a breach of duty by the … [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...]

Help For Bankers Who Buy Insurance For Their Banks

Here is the point I make with bank clients that seems to help the most with understanding bank insurance issues:For insurance coverage of theft and fraud, look to your bond. Employee theft, robbery, ATM theft, computer hackers... For coverage for allegations of negligence, go to your directors and officers, general liability, auto liability, … [Read more...]

Figure Adequate Liability Insurance Limits

How about a way to figure out how much liability insurance a business should have?I have seen many such formulas. I have never bought into any of them.Here are the "normal" liability insurance policies for most businesses:Auto Liability Insurance - Pays for bodily injury and property damage caused by a motor vehicle accident. Should include … [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...]

How to Buy Nonprofit Directors and Officers Insurance

My guide to nonprofit directors and officers insurance is available at my store. Go Here Includes a description of coverages, endorsements, issues to watch out for and a worksheet to help you compare proposals. … [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...]

NonProfit Dangers

I'm starting to hear rumblings that some not-for-profits are letting their directors and officers insurance expire to save money.Many are working on misinformation. Here are facts:-D&O policies pay for wrongful acts - bad decisions. -D&O policies exclude bodily injury, property damage, and usually personal injury.-The commercial liability policy … [Read more...]