In order for any kind of organization to stay afloat and continue to provide a service to the community, it must be staffed with quality employees; this typically includes both directors and officers. This brings up the prospect of directors and officers liability insurance in New York City; while some organizations deem this nonprofit insurance necessary, others do not. Keep reading if you are interested in learning about side “A” D&O coverage.
D&O coverage exists to protect directors and officers in the event that they are personally targeted by a lawsuit regarding their practices as members of a specific organization; in this way, an entity may sue a director or officer without suing the organization as a whole. Side “A” coverage is designed to protect directors and officers as well as any other board members who are in equivalent positions when such a lawsuit occurs. Some organizations forego this type of nonprofit insurance because they are already providing their directors and officers with other types of security and protection. However, many outside veteran board members who can positively influence a company will not join your organization unless their personal assets are explicitly protected with side “A” D&O liability insurance.