You know your mission. You believe in your cause. You’ve got a board of passionate volunteers, a vision for change, and a calendar full of meetings, fundraisers, and community partnerships.

But here’s the question too many nonprofits overlook (right up until someone brings it up in a tense board meeting):

If your answer is “uh… I guess our general liability covers that?” — you’re not alone. However, unfortunately, you are not protected either.

That’s where Directors & Officers Insurance (D&O for short) comes in.

D&O insurance protects the people who lead your nonprofit. From board members to the executive directors, D&O provides a buffer against personal liability for the decisions these people make while doing their job.

Think of it as a financial safety net for the folks behind the scenes.

It doesn’t cover bodily injury or property damage (your general liability policy handles that). Instead, D&O kicks in when there’s a claim of mismanagement, misuse of funds, breach of fiduciary duty, discrimination, wrongful termination, or even failure to follow your own bylaws.

It helps cover legal defense costs, settlements, and judgments, and it’s not just for the organization, but for any individual leaders named in the suit.

And yes, that includes volunteers.

That’s the resistance we hear most often. And it makes sense. Your board is composed of generous, well-meaning people just trying to do good in the community.

But here’s the hard truth: nonprofit leaders get sued more often than you’d think.

• Disgruntled former employees 
• Misunderstood grant distributions
• Donors questioning how their money was used
• Internal conflicts between board members

Any of these can lead to disputes with the potential to turn into legal headaches. And D&O is the policy that steps in when they do.

In some cases, grant funders and large donors won’t even work with a nonprofit that lacks D&O insurance. They recognize that coverage shows you’re protecting your leadership as seriously as your mission. 

D&O coverage is typically very affordable, particularly when compared to the cost of a legal defense. Most nonprofits can get a policy in place quickly, with premiums scaled to the size of the organization and number of board members.

You don’t need to submit your bylaws or pore over pages of legal documents. A quick chat with an experienced agent is usually all it takes to get the right coverage in place.

Before your next board meeting, ask the question.

Are we protected if someone challenges a decision we made?

If the answer is no or “I’m not sure” — let’s fix that.

Call today or click here to schedule a no-pressure coverage review right away so that we can help you protect the people who keep your mission moving forward.