When most people think about Directors and Officers insurance (D&O insurance), they think it’s only needed by large publicly traded for-profit businesses with many shareholders. But adequate D&O protection is just as essential for not-for-profit organizations to guard against actual or alleged wrongful acts.

Why Do I Need Non-Profit Directors & Officers Insurance?
Speaking with non-profit clients, the common misconception is that their directors, officers, and trustees do not have any real personal liability exposure from their non-profit activities. Many join the non-profit sector to serve the community so it never crosses their mind that they could be exposing themselves to serious financial harm as a result.

But the reality is that the legal standards of conduct required of non-profit directors and officers are at least as high as their counterparts working in for-profit corporations – if not higher. And in today’s litigious environment, the financial risk to non-profit leaders is greater than ever. You may find that the cost of even one small claim can exceed the annual cost of directors and officers insurance by tenfold.