Nonprofit organizations are not immune to litigation. Employment practices liability insurance protects your organization against claims of wrongful termination, discrimination, failure to promote, and injuries to volunteers. Third parties can also use for a variety of reasons. Your standard liability policy covers these issues.
Most general liability policies, however, won’t cover lawsuits when directors, officers, and other individuals who work for the nonprofit are specifically named in a claim. Directors and Officers coverage protects against situations like this. It’s critical to look at your insurance options so that you are protected.
D&O Policies for Nonprofits
D&O insurance for nonprofits is geared toward protecting your company’s officers. Directors and board members have a passion for the cause, but they may not have a great deal of experience serving on the board of a company. Because of this, D&O protection is essential.
When planning for your company’s coverage, make sure you include all past, present, and future employees, directors, and volunteers. Independent contractors should also be considered. In addition, if someone working for your nonfit provided false information when they applied, severability coverage will protect all the insureds from litigation.
You take pride in your nonprofit organization and you feel satisfaction from helping those in need. Protect your company and your employees from unwanted liability.