Common Features of Nonprofit Directors and Officers Insurance

If you are the owner or director of a nonprofit organization, you’re automatically at risk to be sued or held liable in the event that someone feels you’re not upholding the level of responsibility commonly referred to as the “standard of care.” While most nonprofits hold general liability insurance, this only covers negligence or performance failures relating to your organization’s products or services, and doesn’t take into account the duties or performance of its nonprofit board. Most industry experts agree that directors and officers insurance nonprofit is essential for today’s nonprofit organizations, so here’s a quick overview as to some of its most important features.


There is no set deductible amount. Rather, it varies based on a nonprofit’s size and ability to manage costs, but typically falls somewhere in between $500 and $5,000.

Employment Practice Liability Coverage

Directors and officers insurance nonprofit insurance help guard insured members of your organization against claims of sexual harassment, discrimination, wrongful termination and unfair insurance practices.

Liability Limits

While there is some variation among insurance companies when it comes to coverage limits, most fall between $1,000,000 and $10,000,000 depending on the organization’s size.

Entity Coverage

Many policies now guard against claims made against the actual organization, even if the situation doesn’t directly involve a director or officer.

To ensure continued success of your nonprofit, you have to be prepared for the worst-case scenario and directors and officers insurance nonprofit enables you to do exactly that.



photo credit: SBN board meeting (license)