Frequently Asked Questions
What does Directors & Officers Liability Insurance cover?
Directors & Officers Liability (D & O) insurance is coverage intended to protect individual board members if they are sued as a result of serving in the organization. Whether you are a Non-Profit or For-Profit organization, your officers and board members are at risk of being sued for a variety of things including mismanagement of the organizations money, misstatements, errors & omissions, mismanagement of the organization, etc. Having this protection in place not only protects your board members but also may make it easier to recruit good board members who would not sit on a board without it.
Does our non-profit board need Directors & Officers Liability?
Yes, absolutely. Most non-profit boards are made up of philanthropic people who want to help and do good in the world. As part of your board, they expose themselves to lawsuits by members of the non-profit and the community at large. Your board members can be sued for mismanagement of money, failing to comply with workplace laws, misrepresentation of company assets, and breach of fiduciary duty resulting in financial losses or bankruptcy of the organization.
Why might we need Liquor Liability?
Many nonprofit organizations host events or gathering where alcohol is sold as a way to generate funds for the organization. Most General Liability policies have an exclusion for liquor related claims if the business is selling liquor. Let’s say that a donor had a few drinks at your event and as they were leaving, they pulled out in front of another vehicle causing a serious accident. The driver and their family saw them leave your event and decided to include you in their lawsuit. Liquor Liability can protect you from 3rd party lawsuits for the risks associated with serving liquor according to Dram Shop Laws.