Best D&O Insurance for Nonprofits (2026)
Volunteer-protection laws can limit a nonprofit director's liability but, one insurer notes, not the cost of defending a suit, and not every leader counts as a volunteer. D&O pays for defense and entity claims; check who is insured, how claims by the organization or an attorney general are treated, and what the form leaves out.1,2,3
8 providers document D&O Insurance for nonprofits. Markel Insurance, TechInsurance and Lockton rank highest on Spot’s evidence ranking.
Updated
Which Providers Document D&O Insurance for Nonprofits?
- Rank 1
Named for Nonprofits
- Carrier & MGA Spot Score · Assessed 2026-09-29 · Markel Insurance Company (NAIC 38970, Illinois-domiciled) as an admitted U.S. commercial insurer, including its workers' compensation and…
Markel lists directors-and-officers liability within private-company and nonprofit management-liability offerings, as standalone or blended coverage. 7
Company-reportedU.S. private/nonprofit product page; exact coverage structure varies by policy.
The page names private equity/portfolio companies, PEOs, hospitality, energy and healthcare among private-sector customer types, plus healthcare, education and associations among nonprofits. 7
Company-reportedExamples are not an exhaustive appetite or eligibility list.
- Rank 2
Named for Nonprofits
- Broker Spot Score · Assessed 2026-09-22 · TechInsurance as a division/brand of Specialty Program Group LLC, doing business as SPG Insurance Solutions, for small-business and…
TechInsurance targets D&O at companies with an active board, naming employers with employees or stockholders, venture-backed startups (where investor term sheets often require the coverage), and nonprofits (where most states require a board of directors) as examples. 8
Company-reportedD&O product page, Who needs D&O insurance coverage? section.
- Rank 3
Related mention
- Broker Spot Score · Assessed 2026-09-22 · Lockton's U.S. brokerage presentation, including Lockton Companies, LLC d/b/a Lockton Insurance Brokers, LLC and Lockton, Inc. as named in…
Lockton explains a traditional D&O program in three parts it says it can structure: Side A (direct coverage to individual directors/officers when the company can't indemnify them), Side B (reimbursing the company for indemnifying its D&Os), and Side C (entity coverage, generally limited to securities claims for public companies but broader for private and nonprofit organizations). 5
Company-reportedD&O product page as read 2026-09-23. General educational description of program structure, not a specimen policy form.
- Rank 4
Named for Nonprofits
- Carrier & MGA Spot Score · Assessed 2026-09-23 · The Hartford's US property-and-casualty carrier activity at named insurer level, centered on Hartford Fire Insurance Company and related…
The Hartford's management-liability coverages, including D&O, are offered to nonprofit organizations, publicly traded companies and privately-held companies, with a separate management and professional liability track for financial institutions (adviser D&O, private fund liability, registered fund liability, among others). 9
Company-reportedManagement liability product page as read 2026-09-23.
- Rank 5
Named for Nonprofits
- Broker Spot Score · Assessed 2026-09-22 · US Marsh brokerage legal entities evidenced in the current Marsh client compensation guide, together with the Marsh Risk business and its…
Marsh's financial and professional liability practice places D&O insurance for public, private and non-profit companies; MMA also places D&O coverage within its executive and professional liability practice for middle-market clients. 6,10
Company-reportedMarsh D&O page and MMA executive and professional liability page.
Marsh says public company directors and officers typically face more securities-lawsuit exposure from shareholders and regulators, while private and non-profit organizations more often face employment-practices claims from customers, vendors or regulators; directors and officers of all organization types can face cyber-related liability exposure. 6
Company-reportedMarsh D&O page, common risks FAQ.
- Rank 6
Named for Nonprofits
- Carrier & MGA Spot Score · Assessed 2026-09-23 · The Travelers Indemnity Company and Travelers Casualty and Surety Company of America, with California insurer authority checked. Travelers…
Travelers markets D&O coverage to private companies, public companies, financial institutions and nonprofit organizations with boards of directors, and offers a version specifically for nonprofit organizations. 3
Company-reportedProduct page "Who is D&O liability insurance right for?" section and nonprofit D&O video segment.
- Rank 7
Named for Nonprofits
- Broker Spot Score · Assessed 2026-09-22 · Embroker, Inc. and Embroker Insurance Services LLC as a U.S. digital insurance platform and producer; product-specific insurers include…
Embroker markets D&O to any private or public company with a board of directors, startups that have received or are about to receive venture capital funding, and nonprofit corporations, saying VC and private equity investors commonly require it before funding. 11
Company-reportedProduct-page eligibility and 'Why Do Startups Need D&O Insurance?' sections; not a guarantee of coverage for a particular company.
- Rank 8
Named for Nonprofits
No review scoreReview Score
- Broker Spot Score · Assessed 2026-09-22 · Alliance Risk Insurance Services LLC, the subsidiary agency named in Alliance's terms and the single licensee of record under National…
Alliance Risk says D&O is relevant to venture-backed and public companies, high-risk industries such as fintech, healthcare, real estate and financial services, companies going through M&A, IPO or leadership changes, nonprofits, and small private companies without outside investors. 12
Company-reportedD&O product page; eligibility for a particular company depends on underwriting.
How Did Spot Rank D&O Insurance Providers for Nonprofits?
Spot lists a provider only when its published D&O Insurance information includes a documented claim (verified or company-reported) about eligibility, role, coverage or application that mentions nonprofits. “Named for Nonprofits” marks a provider’s own statement of who it serves; “Related mention” marks a role, coverage or application claim.
Providers with both a Spot Score and a Review Score rank first, then providers with one of the two, then providers with neither. Within each group the order is the equal-weight average of the scores the provider has, as in the industry guides; ties break on fit, then the number of documented claims, then name.
The Spot Score comes from Spot’s reliability assessments and the Review Score from the provider’s rated review sources. Neither measures whether a policy fits your business or what it costs. How Spot Scores work.
Spot, a product of Tools for Enlightenment, publishes this research and works in the commercial insurance market. Editorial policy.
What Do Nonprofits Need From Directors and Officers Insurance?
Volunteer protection is not insurance. The federal Volunteer Protection Act says a nonprofit's volunteer is not liable for harm caused by an act or omission within the scope of their responsibilities, unless the harm came from willful or criminal misconduct, gross negligence, reckless misconduct or conscious, flagrant indifference. It does not affect civil actions the nonprofit itself brings against a volunteer, or the liability of the nonprofit. States can add conditions, so check yours.1
Paid leaders may not be volunteers under that law. It defines a volunteer as someone who receives no compensation, other than expense reimbursement, and no other thing of value in lieu of compensation above $500 a year, and it includes volunteer directors, officers and trustees. A paid executive director will generally fall outside it.2
Defense costs are the gap. One insurer says charitable immunity laws may protect directors from an adverse judgment but not from the defense expenses of being sued personally, and that claims can come from vendors, donors, competitors, employees and government regulators. That is an insurer's view of its own product, not a legal opinion, so ask counsel what your state's law covers.3
The organization needs cover too. In a carrier's not-for-profit specimen, Coverage A pays individuals when the organization has not indemnified them, Coverage B reimburses the organization when it has, and Coverage C pays the organization for claims against it. A broker adds that entity coverage is broader for private and nonprofit organizations than for public companies, where it is typically limited to securities claims.4,5
Which Directors and Officers Exposures Do Nonprofits Face?
Claims come from the people your mission touches. One insurer's examples are a museum sued by artists it advertised without permission, and regulators acting against a nonprofit's president who misused federal grant money, even though the organization says it did not know and fired the president. A broker says claims against directors and officers can come from shareholders, customers, suppliers, regulators and creditors.3,6
A claim brought by your own organization is usually excluded, with a nonprofit-relevant exception. In the specimen, claims brought by or on behalf of the organization against an individual insured are excluded, but a derivative claim by a member, an attorney general or another representative party is allowed when it is brought and maintained independently of any insured.4
Employment and bodily injury claims go elsewhere. The specimen excludes employment-related claims and bodily injury or property damage, and it excludes claims about the organization's purchase or sale of securities, with an exception for the issuance of bond debt and claims by bondholders. If you issue bonds, that exception matters.4
Your role when the act happened matters. The specimen excludes acts of an individual insured in any capacity other than as an executive or employee of the organization or as an outside entity executive, so a director's separate paid or professional role may fall outside it.4
What Should Nonprofits Check Before Buying Directors and Officers Insurance?
List everyone who sits at your table and ask who is insured. In the specimen, executives include directors, officers, trustees, the executive director, department heads and members of a duly constituted committee. Ask whether advisory boards and informal groups are insured, since the specimen reaches committee members only on a duly constituted committee.4
Ask about service on other boards. In the specimen, a director who serves another not-for-profit is covered only if the service is at the specific request or direction of the insured organization, and claims brought by that outside entity are excluded. Get the request in writing for any board seat held for your organization.4
Ask who is paid first when the limit runs short. In the specimen, covered loss is paid under Coverage A first, then B, then C and D, and the order holds even if the organization or an individual is insolvent. Ask whether your limit is shared between the organization and individuals, and whether a separate Side A limit is available.4
Put the exclusions next to your risks. If you employ staff, ask how employment claims are handled; if you issue bonds or hold federal grants, ask how the securities and regulatory wording treats them. Ask the same of any quote.3,4
What Do Nonprofits Ask About D&O Insurance?
Do Nonprofits Need Directors and Officers Insurance?
Volunteer-protection laws do not remove the need. The federal Volunteer Protection Act limits a volunteer's liability for harm within their role but does not affect claims brought by the nonprofit or the nonprofit's own liability, and it does not apply to people paid above its threshold. Ask counsel what your state adds.1,2
Are Paid Leaders at Nonprofits Covered by Volunteer Protection Laws?
Not under the federal Act. It defines a volunteer as someone who receives no compensation other than expense reimbursement, and no other thing of value in lieu of compensation above $500 a year. Paid officers and executive directors need to look to insurance and their state's law.2
Does D&O Insurance Cover Attorney General Claims for Nonprofits?
It depends on the wording. A carrier's not-for-profit specimen excludes claims brought by or on behalf of the organization against its insureds but allows derivative claims by a member, an attorney general or another representative brought independently of any insured. Ask how your quote treats regulatory proceedings and attorney general actions.4
Does D&O Insurance Cover Employment Claims for Nonprofits?
Usually not. A carrier's not-for-profit specimen excludes employment-related claims, so ask about employment practices liability as a separate cover or an added part of the same policy.4
Sources for D&O Insurance for Nonprofits
Sources for the Segment Guidance
- 42 U.S. Code § 14503 Limitation on liability for volunteers. Legal Information Institute (Cornell Law School), U.S. Code; (a) liability protection and its conditions; (c) actions by the nonprofit; (d) liability of the organization. Accessed 2026-10-01.
- 42 U.S. Code § 14505 Definitions. Legal Information Institute (Cornell Law School), U.S. Code; (6) Volunteer. Accessed 2026-10-01.
- Directors & Officers (D&O) Liability Insurance. Travelers; Uncover Risks to Your Nonprofit Organization (video transcript: charitable immunity, who sues, claim examples). Accessed 2026-10-01.
- Management Liability Insurance Policy: Directors & Officers Liability Coverage Part (NFP P002 CW 03/09). Hiscox specimen; I Insuring Agreements A–D; II definitions of Executive, Individual Insured, Outside Entity and Outside Entity Executive, Wrongful Act; exclusions F, H, L and the securities exclusion; IX Order of Payments. Accessed 2026-10-01.
- Directors & Officers (D&O) Insurance. Lockton; Side A/B/C components. Accessed 2026-10-01.
- Directors and Officers Liability (D&O) Insurance. Marsh; Opening; sources of claims against directors and officers. Accessed 2026-10-01.
Sources for the Ranked Providers
- Private and Nonprofit Management Liability Insurance. Markel. Accessed 2026-09-29.
- Directors and Officers Insurance (D&O) Quotes Online. TechInsurance. Accessed 2026-09-23.
- Management Liability Insurance | Get a Quote. The Hartford. Accessed 2026-09-23.
- Expert Executive and Professional Liability Insurance. Marsh McLennan Agency. Accessed 2026-09-23.
- Directors & Officers Insurance Coverage: D&O Explained. Embroker. Accessed 2026-09-23.
- Directors & Officers Insurance (D&O). Alliance Risk. Accessed 2026-09-23.