If you have an organization with a Board of Directors, you have a group of people acting on behalf of your agency who are different from employees, and you may need additional directors & officers liability insurance coverage—often referred to as D&O insurance—for their unique situation.
Once you hire or appoint a board member for your non-profit agency, that person is an agent with a certain amount of responsibility for your organization. This can expose board members to lawsuit claims for things like bodily injury or non-bodily injury (often the latter category includes things like discrimination, unfair employment practices, wrongful termination, and poor management of funds for the organization). In many cases, a general liability policy should cover the cases of bodily injury, so directors & officers liability insurance would take over in the case of a non-bodily injury claim. However, keep in mind that not all policies will cover everything, so it’s important to review what your policy does cover to make sure you are protected.
These policies generally cover directors and officers at a non-profit, and can also be tailored to include other key employees who may be at risk as the target of potential lawsuits. If the policy does not cover groups who are below the director or officer level, such as volunteers, you will want to be sure they are covered with another policy if applicable.
When shopping for a good directors & officers liability insurance policy, understand the benefits and limitations of these types of coverage in order to get a policy that provides the protection you need for your organization and its high-level officers.