What Does Directors and Officers Insurance Have to Offer Non Profit Companies?

As might be expected, the higher-up employees of for profit companies are often liable for claims of negligence and oversight. This is why these companies often invest in Directors and Officers insurance. As it turns out, the executive officers and directors of non profit companies can face just as many liabilities as the executives of for profit companies. For this reason, Directors and Officers for non profit companies is a worthwhile investment, and certainly important to keep in mind.

The target exposures of Directors and Officers for non profit companies will vary depending on the particular coverage plan. Generally speaking, however, the more comprehensive the plan, the better. A plan with more target exposures can leave fewer potential gaps in the coverage, thereby offering the best possible protection to directors and officers against claims. A few target exposures a plan might encompass include:

  • Human services
  • Civil rights and advocacy
  • Medical and scientific research
  • Working with youth
  • Community housing development
  • Advocacy for foreign or domestic affairs
  • Educational community programming

Non profit companies working in these areas may run into certain liabilities associated with errors or negligence, which could lead to costly lawsuits. The company executives may ultimately bear the responsibility for these costs. If this should happen, it is important to have the proper Directors and Officers coverage to mitigate these expenses.