Directors and Officers Insurance

Protecting Your Nonprofit Organization from Financial Risk

Proactive Risk Management

Simple Buying Process

Easy-to-Understand Policies

Directors and Officers Insurance (D&O)

D&O insurance protects individual directors, officers, board members, and tax-exempt nonprofit organizations from financial losses if they are sued for wrongful decisions or actions while in their leadership positions.

Personalized Insurance for Nonprofit Organizations

CTG Insurance understands your nonprofit organization’s financial resources and reputation needs protection. We have you covered with nonprofit directors and officers liability insurance so you can focus on carrying out your organization’s mission.

Personalized insurance solutions that meet the needs of a nonprofit organization.

Budget-conscious coverage that won’t break the bank.

Dedicated customer service every step of the way.

Decades of experience specializing in property and liability insurance solutions.

FAQs

Ask the experts. We’re here to answer your nonprofit insurance related questions.

Do I need Directors and Officers liability insurance?

When running not for profit organizations, it is essential to have the right coverage to protect your directors and officers. D&O is explicitly designed to provide protection against personal liability associated with wrongful acts committed while carrying out their duties. If you’re one of the following types of organization, we highly recommend D&O insurance:

Charitable organization
Religious organization
Tax exempt organizations

What does nonprofit D&O insurance cover?

While it is essential to know that policies vary by your insurance carrier, some specific things covered by your nonprofit D&O include financial claims based on the decisions of your director and officers like misuse of nonprofit funds, breach of fiduciary duty, failure to comply with workplace laws, and a lack of board policies.

What doesn’t D&O cover?

It is important to note that D&O insurance does not cover everything. Generally, directors and officers are still liable for intentional or fraudulent acts, as well as activities or violations of securities laws.

How can D&O insurance help protect nonprofits from financial losses?

In addition to protecting directors and officers from personal liability, directors and officers liability insurance can also help cover the costs of legal fees and settlements arising from lawsuits. This can help minimize the financial impact of defense costs on nonprofit organizations and free up resources to be used for other purposes.

How much D&O coverage does a nonprofit need?

The amount of directors and officers liability insurance that a nonprofit needs will vary depending on the organization's size, structure, and the types of risks it faces. However, we recommend that nonprofits purchase at least $1-2 million in coverage to provide adequate protection.

Be Prepared For Any Scenario.

Directors and Officers liability insurance claims can be complex and expensive to defend; that could result in a loss of tax-exempt status. Protect your organization with the right coverage, so you can focus on serving your community.

Misuse of Funds & Negligent Misrepresentation Claim

A charitable nonprofit organization received a government grant. When an audit was done, it was determined the funds were not used for the intended purpose. The government alleged negligent misrepresentations and violation of the False Claims Act. The claim was settled out of court, but legal costs incurred to defend the claim totaled approximately $300,000.

Misappropriation of Funds Claim

A grant making foundation receiving private donations was alleged to have used those funds for projects other than what the donations were intended for. A group of supporters sued the foundation’s board alleging misappropriation of funds and breach of duty. Defense costs exceeded $65,000.

Breach of Bylaws Claim

Members of a nonprofit association filed a lawsuit alleging the recent election of a new Executive Director did not follow the correct procedures outlined in their bylaws. Members argued that the bylaws were modified to suit the self-interest of the board. Defense costs and settlement exceeded $75,000.

Defamation Claim

A long time founding member of a nonprofit had their privileges revoked. They alleged the board members made false statements to other nonprofit members resulting in revoked privileges. They sued for defamation and non-monetary damages to restore their member benefits. Through arbitration, a settlement was reached that exceeded $20,000.

Peace of Mind for Nonprofit Leaders

We understand the challenging process of determining the right coverage for your unique needs. Start a quote and our team of experts will reach out to finish the discovery process and present you with a comprehensive proposal quickly.