Your board members volunteered. The lawsuit names them anyway.
A nonprofit's directors and officers can be sued personally for the decisions the board makes: a dismissed executive director, a donor who says the gift was misused, a member denied something the bylaws promised, a regulator asking about the finances. Directors and officers coverage defends the board and the organization for those claims, and in practice it is also the employment practices policy most nonprofits rely on, because the most common D&O claim against a nonprofit is from an employee. We place it for charities, associations, foundations, congregations and community groups, and the first question on the application is the one that decides the price: how many employees.
Tell us the situation.
One licensed human replies the same business day — not five agents, not an auto-responder. If the policy you have is already the right one, we will tell you.
We use this to quote and service your insurance, and we do not sell it or pass it to lead networks. Privacy policy.
Send us what you have. We’ll tell you if it’s right.
Your current policy paperwork, a renewal notice, or nothing at all. A licensed agent reads it and replies the same business day.
What nonprofit board businesses actually need.
Directors and officers liability
Defense and damages for claims against board members, officers and the organization for wrongful acts in managing it: breach of duty, misstatement, mismanagement, conflicts of interest.
Without it — Board members are personally exposed and the bylaws' indemnification promise is only as good as the organization's bank balance.
Employment practices liability
Claims by employees, former employees and applicants for wrongful termination, discrimination, harassment and retaliation, usually included in a nonprofit D&O form.
Without it — The single most frequent claim against a nonprofit, and excluded from general liability.
Fiduciary liability
Claims over the management of the organization's retirement or benefit plans.
Without it — A trustee of the 403(b) plan is personally liable for its administration under federal law.
Third-party discrimination
Claims by clients, members or the public alleging discrimination in services.
Without it — A service organization can be sued by the people it serves, and the general liability form excludes discrimination.
Regulatory and investigation costs
Counsel for a state attorney general inquiry or a subpoena about the organization's affairs.
Without it — An inquiry that ends with no finding still costs the fees to answer it.
The claims we actually see.
Ordered by how often we see them, not by how dramatic they are. Each one names the coverage that answers it — and the policy people wrongly assume already does.
Most common
A terminated employee alleges wrongful dismissal or discrimination
Covered by Employment practices liability within the D&O form
Defense costs are the loss even when the organization wins. A written process and documented reasons are the difference between a nuisance settlement and a dismissal.
Common
A donor or a member sues over how funds or the bylaws were handled
Covered by Directors and officers liability
Restricted gifts spent on the wrong thing are the classic donor claim, and the board is named alongside the organization.
Less common, severe
A state attorney general or the IRS questions the organization's governance
Covered by Regulatory coverage, where included
Fines and penalties are usually uninsurable; the defense costs are what the policy pays.
Less common, severe
A board decision harms a third party financially
Covered by Directors and officers liability
A merger, a program closure or a contract dispute can produce a claim from a party the board never thought of as a plaintiff.
What the policy will not cover.
Pick a procedure to see what the exclusion actually means and whether it can be placed somewhere else.
D&O is management liability. It defends decisions; it does not pay for the things other policies exist for.
What nonprofit D&O will not cover
Bodily injury and property damage
A slip at the office or a fire at the shelter is general liability and property.
Can it be placed? Yes, on the package policy.
Professional services
Counseling, medical care, education and case management are professional liability exposures with their own policy.
Can it be placed? Yes, as professional liability, often on the same package.
Fraud and personal profit
A director who acts dishonestly or gains personally is excluded once the conduct is established; the policy defends until then.
Can it be placed? No.
Claims known before the policy started
D&O is claims-made. A dispute the board knew about before buying the policy is not covered by it.
Can it be placed? Only by disclosing it on the application and asking.
What the insurance company will ask about your nonprofit board business
We read the applications the markets use for businesses in this field and pulled out what they actually ask. Have these answers ready and a quote takes a day instead of a week, because nobody has to come back to you for the missing piece.
About the business
- What is your organization's main purpose?
- How many members does your organization have?
- How long has your organization been operating?
- What is your annual gross revenue?
How you operate
- Do you offer counseling services for a fee?
- Do you operate a school?
- Do you regularly transport people or deliver goods?
- How many employees and volunteers use their own vehicles for your work?
- Do your staff or volunteers work on drop-in center activities, and if so, where and how often?
Safety and controls
- Are there at least two accessible exits from your main building?
- Do you have policies for supervising employees and volunteers who work with minors?
- Do you verify employment and personal references for all new employees?
- Has your organization ever been involved in a lawsuit or claim related to abuse or misconduct?
- What kind of counseling services, if any, does clergy provide?
Your history
- What year was your main building constructed?
- What type of plumbing does your building have (copper or PVC)?
- Describe your building's cooling system
- Do you own your building or lease it?
- Have you had any insurance claims or losses in the past five years?
Money and people
- What is your total building value?
- What is your total fund balance (assets minus liabilities)?
- Do you currently have general liability insurance, and if so, with whom?
- Why are you looking for new or different insurance coverage?
Have these ready
- Your loss history for the last five years, including details of any claims or losses
- Information about your current insurance coverage: company name, types of coverage, limits, and annual premium
- A list and description of all property you want insured
- Proof that employees and volunteers have liability insurance before using their personal vehicles for your work
- Names of your pastor or executive leadership
You answer what you can; a licensed agent fills the rest with you.
What our nonprofit board clients ask us.
How much does nonprofit D&O insurance cost?
It is priced mostly on the number of employees, then on the budget, the kind of work, the states of operation and the claims history, because employment claims are most of what it pays. A small all-volunteer organization pays a modest annual premium for a million-dollar limit; a service nonprofit with a hundred employees pays several times that. It is cheaper than the first employment claim by a wide margin.
Do volunteer board members really need D&O?
Yes, and experienced board members ask to see the policy before they join. Volunteer protection statutes limit liability for some acts in some states, but they do not stop a suit from being filed or pay the lawyer who answers it. The policy is what lets a competent person say yes to a board seat.
What does a nonprofit D&O application ask for?
The applications we work from ask the organization's mission and programs, the annual budget and sources of funding, the number of employees and volunteers, the states where it operates, whether it has an employee handbook and written hiring and termination procedures, whether it has had layoffs or plans any, any pending or prior claims, complaints or investigations, and whether the financial statements are audited. The employee count and the handbook answer decide most of the price.
Is employment practices coverage included in nonprofit D&O?
On most nonprofit D&O forms, yes, and it is the part used most. Check the limit, whether it is shared with the D&O limit, and whether third-party claims from clients are included. A standalone employment practices policy is the alternative for an organization with a large staff.
Commercial insurance is 96% of what we do — it is not a department here, it is the whole business. Not ready to talk? The guides answer the questions this page raises in more depth. Already insured with us and need a certificate or a policy change? Ask the service team rather than starting a quote — it is faster and it goes to the people whose job it is. We also write home and auto, which is usually cheaper alongside the business policy than apart from it.
Handed a lease, a vendor packet or a client contract with insurance requirements? Paste it into the COI Requirements Decoder to see what each one means for your business, or read what the requirements mean.