Director & Officers Liability
Protecting the people who guide your mission
Your board and leadership team make decisions that shape your nonprofit’s future.
But even the most well-intentioned choices can lead to disputes or legal action—from employees, donors, vendors, or even other board members
What D&O Insurance covers
Directors & Officers (D&O) Liability Insurance from NonProfit Insuror South protects your organization’s leaders when their decisions are challenged, helping preserve your mission, reputation, and financial stability.
D&O insurance
protects your board members, officers, trustees, and executives against claims of mismanagement, wrongful acts, or errors in leadership decisions.
Even if a claim has no merit, the cost of legal defense can be devastating. D&O coverage ensures your leadership can serve without personal financial risk.
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Alleged mismanagement of funds or grants
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Breach of fiduciary duty or failure to act in good faith
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Misrepresentation to donors or stakeholders
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Wrongful termination or governance disputes
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Failure to follow bylaws or state nonprofit laws
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Errors in hiring, oversight, or policy enforcement
- Defense costs, settlements, and judgments
Who’s protected
Some policies also extend protection to past board members or spouses named in suits related to governance actions. A D&O policy typically covers:
Board members and officers
Executive directors and management staff
Trustees, committee leaders, and volunteers
The organization itself (entity coverage)
Why nonprofits need D&O coverage
Board members often serve out of passion—not for pay.But in the eyes of the law, they still hold fiduciary and governance responsibilities. Without D&O insurance, individuals could be personally liable for lawsuits tied to their decisions.
That includes:
Misallocation of funds or misuse of grants
Conflicts of interest
Discrimination or wrongful termination allegations
Contract or partnership disputes
Claims from donors, vendors, or employees
D&O coverage protects not just the board—but the nonprofit itself.
What’s included (and what’s not)
Your NonProfit Insuror South advisor will ensure your D&O, E&O, and EPLI policies align seamlessly to eliminate gaps in protection.
Included:
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Defense costs, settlements, and legal judgments
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Coverage for individuals and the organization
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Employment Practices Liability (optional add-on or standalone EPLI policy)
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Third-party and regulatory claim protection (depending on carrier)
Not included:
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Bodily injury or property damage (covered under General Liability)
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Intentional fraud or criminal acts
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Professional errors (covered under E&O Insurance)
Added benefits for nonprofit boards
We understand the responsibilities—and pressures—nonprofit leaders face. Our advisors work directly with your executive team to design D&O coverage that fits your mission and budget.
Sample bylaws and conflict-of-interest policies
Common nonprofit claim examples
Each of these can trigger expensive defense costs and threaten your nonprofit’s reputation.
A donor sues, alleging misuse of contributions.
How NonProfit Insuror South helps
We understand the responsibilities—and pressures—nonprofit leaders face. Our advisors work directly with your executive team to design D&O coverage that fits your mission and budget.
We’ll make sure your leadership is protected so they can focus on strategy—not liability.
Protect your leaders. Preserve your legacy.
Your board members make tough decisions every day on behalf of your mission. Give them the peace of mind that comes from knowing they’re protected.
