Some nonprofits think that litigation insurance is not needed because their organizations are not big corporation profit generators. These groups do not realize that if lawsuits arise, legal expenses for defense and financial burdens imposed by rulings can cripple a nonprofit. Directors and officers insurance nonprofit protects an organization by providing monetary support and/or indemnity in cases where the organizations’ leaders, employers, or the organization itself faces lawsuits. Directors and officers can face suits involving internal mismanagement, conflicts of interest, or other allegations of wrongful employment practice. Even in the case that a nonprofit official was unaware of bad practices, they can still be held liable and can cost the organization significant financial resources.
When you are considering obtaining liability insurance, seek out an experienced insurance company for directors and officers insurance nonprofit. They will research and study your nonprofit organization to identify the exposure risks and help you make plans to prevent the occurrence of lawsuits or be prepared for them. Thus, not only does the insurance provide financial protection, it also provides a critical risk analysis that helps lower the risk of litigation against your organization. Good insurance companies will also customize your insurance plan to your organization so that you have the necessary protection at an affordable cost. Invest in your nonprofits’ future by obtaining a directors and officers insurance nonprofit plan.