Painted Hands
  • By Allan M Block Blogging Team
  • Posted June 16, 2014

Directors and Officers Liability Coverage — The E&O of Nonprofits

Directors and officers liability coverage provides similar benefits to businesses and nonprofits  as does errors & omissions insurance to professionals. It can help protect the personal assets of directors and officers, and cover any defense costs in the event of a lawsuit. The top five reasons to invest in D&O insurance are:

  1. Protect your management from being held personally liable for errors or omissions of the organization
  2. Goes beyond the protections that the Volunteer Protection Act offers, such as the cost of defense
  3. Protect you and your officers from being sued for a range of reasons, such as inappropriate use of donor-restricted funds
  4. Most legal fees and damages due after a lawsuit exceed the liquid net assets of a nonprofit.
  5. Coverage can be extended to cover the organization itself.

Tarrytown nonprofit organizations that need directors and officers liability coverage can contact Allan Block Insurance today. They can provide all the resources to help charities do their best work with minimal cost to them.