Do Nonprofits Need D&O Insurance?

Board members can face allegations about finances, employment, or oversight. Check nonprofit entity coverage and insured-person definitions.

For a nonprofit, confirm whether the form names the nonprofit entity and covers directors, officers, trustees, committee members, and volunteers in their actual roles. Side A and B address individual protection and indemnification; Side C applies only if entity coverage is included. A form may exclude employment or benefit-plan allegations, and an insured-versus-insured clause can affect disputes involving the organization and its leaders. Check the employment and fiduciary sections separately, examine any volunteer extension, and make sure affiliated foundations or chapters are scheduled if they need protection.