Directors and Officers liability insurance (D&O) is most often associated with large for-profit companies, but any organization that’s liable to public and legal scrutiny can benefit from a D&O 
policy. The directors and officers of a non-profit organization, for example, have just as much exposure to personal liability as the heads of large corporations. In fact, non-profit directors and officers may face even more risk because the affairs of the organization are often conducted under less efficient conditions than in for-profit business corporations. Here’s a look at some of the key features of a D&O policy for a non-profit.
Claims-Made Coverage
Most liability insurance policies pay for events that occur during the policy period. In the case of D&O insurance, a policy covers lawsuits filed during the policy period. This means the wrongful act could have occurred years before the claim itself was made, and even before the policy was taken out with a non-profit insurance provider in New York City.
Extended Reporting Period Coverage
In the event that you decide to replace or cancel your D&O liability insurance policy, you may still desire protection for events that took place prior to the expiration or cancellation of your policy. Extended reporting period (ERP) coverage provides protection for lawsuits and actions brought during the policy period. Talk to your insurance provider to find out more about premiums and coverage lengths for ERP policies.
Legal Defense Coverage
If your non-profit is being sued, you could face months or even years of being dragged through litigation. Unless you have the time and ability to defend yourself, you will need to hire a competent legal defense team. When signing up for a D&O insurance policy in New York City, pay close attention to the defense limit, which covers the awards and the defense costs of all claims made during the policy.