Possible Claims Examples

  • Breach of Fiduciary Duties: A donor sues the directors, alleging misuse of funds contrary to the organization’s mission.

  • Employment Practices: A former employee sues the officers for wrongful termination or discrimination.

  • Mismanagement of Funds: Financial mismanagement or fraud allegations lead to legal actions against the directors.

  • Contractual Disputes: Legal disputes arising from contracts entered into or terminated by the directors or officers.

Cost of D&O Insurance

The cost of D&O Insurance varies based on several factors, such as the size of the organization, its annual revenue, and its operational risks. Small to medium-sized nonprofits can expect to pay between $600 to $2,000 annually for a policy.


D&O Insurance is not just a protective measure but a strategic investment in the organization’s resilience and the well-being of its leadership. It ensures that the focus remains on the mission rather than the potential personal liabilities associated with nonprofit management.