Do Nonprofits Need D&O Insurance?

Triple-I says D&O forms can be written for not-for-profit organizations as well as commercial firms. Nonprofit boards can face allegations involving governance, finances, employment, fundraising, or regulatory compliance, although coverage depends on the precise allegations and wording. A policy may define insured persons to include directors, officers, employees, or volunteers, but do not assume every volunteer or committee member qualifies. Check that all legal entities and board roles are scheduled or included, whether entity coverage is available, and how the form treats employment, benefits, professional services, and claims by one insured against another.

For a nonprofit, confirm whether the form names the nonprofit entity and covers directors, officers, trustees, committee members, and volunteers in their actual roles. Side A and B address individual protection and indemnification; Side C applies only if entity coverage is included. A form may exclude employment or benefit-plan allegations, and an insured-versus-insured clause can affect disputes involving the organization and its leaders. Check the employment and fiduciary sections separately, examine any volunteer extension, and make sure affiliated foundations or chapters are scheduled if they need protection.