Today’s non-profit corporation is more at risk than ever for lawsuits and other claims against the organization. To get the right protection that is tailored specifically for the leadership of a non-profit group, you need the appropriate directors & officers liability insurance.
As a non-profit, you have unique needs for liability insurance. Many of the non-profit organizations that exist today have a structure that is different from traditional companies, involving a Board of Directors, employees, volunteers, committee members, clients, and even other partner organizations. If someone from any one of these groups decided to bring a lawsuit against your organization, it could be financially devastating to your non-profit and the people who lead your organization.
A good directors & officers liability insurance policy will protect your organization from lawsuits that involve cases beyond where your traditional liability coverage ends, usually in the case of non-bodily injury claims. Making sure that your policy has a broad definition of who is “insured” is essential to protecting your non-profit. This can help protect you if someone who is involved with your organization’s mission and activities has an unexpected accident, or files a lawsuit accusing your non-profit of things like discrimination, sexual harassment, or other employment-related violations.
If your non-profit is operating in a country or territory outside of the U.S., read through your policy and ensure that it will cover your operations outside of the country as well. Some policies may have restrictions on foreign coverage, so get one that offers the same protection in every country where you operate.
Protecting the leaders of your non-profit with directors & officers liability insurance will help you focus on the mission of your organization, and provide services without worrying about potential obstacles from lawsuits down the road.