CALL NOW FOR A QUOTE : 800.681.2025
What You Need To Know About Nonprofit D&O Insurance
Home   -   Blog   -   What You Need To Know About Nonprofit D&O Insurance

About Non-Profit D&O Insurance Sacramento CA

Here are a few things nonprofits should know about D&O insurance.

You may think that your nonprofit is safe from lawsuits. After all, you’re a fairly small organization and you only have a handful of employees. Who would sue you?

Unfortunately, all too many nonprofits have had that question answered when they’ve faced wrongful termination, discrimination, mismanagement of assets, or harassment lawsuits. If your nonprofit has even one employee, you should seriously consider carrying insurance.

Specifically, you should look into nonprofit D&O insurance. This type of coverage is designed to protect your directors and officers (hence the D&O) against lawsuits in which they are personally held liable for actions taken on behalf of your nonprofit.

Without this type of coverage, your directors and officers are exposing their personal assets to risk. In other words, someone could sue them personally—and consequently take their settlement from their personal assets—for something they did in their line of work with your nonprofit. D&O insurance safeguards against a breach of duty and will cover wrongful acts, which are actually or alleged wrong decisions. That means that if your director or officer makes an accidental mistake or an intentionally bad call, you can protect your nonprofit and your board’s personal assets.

The majority of D&O claims relate back to issues with employees, so if your nonprofit has even one individual on staff, it is in your best interest to carry this type of insurance coverage.

If you’re going to protect your directors and officers with nonprofit D&O insurance, you should get your coverage from the experts. To learn about the exact coverage your California nonprofit needs, contact Purves & Associates Insurance Services. Serving Sacramento, Davis, and neighboring cities, we’re committed to protecting local nonprofits and the great work they do!