There are so many options for insuring your nonprofit that it can be difficult to determine which policies are necessary. One type of insurance that many are unsure of is D and O for nonprofits. Here is an explanation of this insurance to help you decide whether it might benefit your organization.
What Is D & O for Nonprofits?
D & O stands for directors and officers and refers to members of your leadership team. This type of insurance protects their personal assets from lawsuits claiming they made bad decisions or mishandled the organization’s finances.
What Are the Benefits?
Individuals talented in business management know they must protect their own personal assets, and often will turn down job offers from companies where they feel at risk. By offering this coverage, you make working for your business more attractive.
What Are the Limits?
Most policies have a liability limit of $1,000,000. However, some firms offer greater coverage. The amount you require will depend on your operating budget and the net worth of the directors and officers you wish to insure.
D & O insurance is one of the many types of policies that protect nonprofit organizations. By covering your leaders’ personal assets, you enable them to focus on their jobs without fear of litigation.