The board of a nonprofit faces the same risk of personal financial loss as the directors and officers of privately-held corporations. Financial-based claims can come from many different claimants, and it’s not unusual to see seven-figure losses resulting from such claims made against directors and officers of corporations and nonprofits. Although this video was intended for insurance carriers, it does shine a light on the fact that claims made against directors and officers have been rising as of late—which means your personal risk is rising, too.
D&O liability insurance coverage can round out your nonprofit’s general liability insurance policy by protecting yourself, fellow board members, and your organization as a whole from financial ruin in the event of a lawsuit. Contact an insurance provider in New York City that specializes in D&O liability insurance for nonprofits to learn more.