Why Your Board Needs Directors & Officers (D&O) Liability Insurance

Directors & Officers (D&O) Liability Insurance protects board members and organizational leaders from personal financial loss if they are sued for decisions or actions taken while managing the organization.

This coverage typically includes claims related to:

·       - Breach of fiduciary duty

·       - Misuse of assets

·       - Errors in judgment

·       - Legal defense costs

D&O insurance is essential for organizations of all sizes—including nonprofits. Serving on a board without this protection can put your personal assets at risk. Lawsuits against companies and their directors or officers are increasingly common.

If you currently serve on a board or are considering joining one, make it a priority to confirm what insurance policies are in place and review any exclusions or limitations. Protecting yourself and the organization starts with understanding these details.