Directors & Officers

Any business with a board or advisory committee should consider purchasing a Directors & Officers insurance policy, including non-profit organizations. It’s not only the publicly-traded companies who need this protection. Directors and Officers liability insurance protects the personal assets of the organization’s directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, members, customers or other parties, for actual or alleged wrongful acts in managing a company or non-profit organization.

Common Types of Organizations that Need D&O Coverage

• Educational Services Associations

• Food Banks

• Foundations

• Historical Societies

• Homeowners, Condo or Townhome Associations (HOA)

• Job Training / Sheltered Workshop for Special Needs Individuals

• Mental Health Associations

• Private Schools

• Social Service Organizations

• Sports Clubs

• Youth Associations

Who Sues Non-Profit Organizations?

• Donors – claims resulting from those who make donations to the organization, misrepresentation of the financial status of the organization, or misappropriation of funds
  

• Suppliers, Contractors, Competitors – third party lawsuits can be filed for various reasons (i.e. use of trademarked property while promoting a fundraiser, product/company defamation, etc.)
  

• Governmental & Regulatory Agencies – claims due to violations of the law, misappropriation of funds including grant money
  

• Volunteers – hostile work environment, discrimination, harassment/humiliation
  

• Customers, Clients, & Consumer Groups  - claim by the recipient of the organization’s services, or a homeowner in the case of an HOA (misuse of funds, contract dispute, cost/quality of product/service, dishonesty or fraud, extension or refusal of credit)