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Business Insurance

Protect Your Board

By February 20, 2019July 11th, 2021No Comments

Serving on the board of a nonprofit organization is an honor and a privilege. In a board position, you gain access to information about the organization and have a seat at the table to help it achieve its mission and purpose.

However, did you know if you serve on a nonprofit board, you (and your spouse) could be held personally held liable and potentially sued for your involvement with the organization? Shocking, I know. Never fear—this is where Directors and Officers Insurance, or D&O Insurance, comes in.

D&O Insurance helps cover defense costs and financial settlements from lawsuits brought against an organization’s board of directors and its officers. It can protect your personal assets and ensure you don’t have to pay out of pocket to pony up for an attorney.

Think people are too nice to sue a nonprofit? Think again. A recent study shows that non-profits file twice as many D&O claims than public or private companies.

The same study also found Cyber Risk to be the No. 1 concern of Directors & Officers. If proper procedures, technology, and infrastructure are not in place to prevent a cyber breach and sensitive data or other information is stolen, the board could be held responsible.

So, before you agree to serve on a board or take a position as an officer, confirm that the organization has D&O coverage. As a matter of fact, this is a good annual practice for all nonprofit boards to confirm in their minutes that the organization has D&O Insurance.

If you want help navigating these waters or reviewing the organization’s current coverage, I would love to help. It is my personal mission to work with nonprofits and use insurance and risk management as forces for good for those organizations. Please give me a call at 423-748-4212 or email me at