Often, a not-for-profit organization’s Board of Directors and Officers are volunteers who donate their time and expertise to help manage these institutions. Similar to serving on corporate, for-profit boards, these individuals risk being personally named in lawsuits alleging mismanagement. Consequently, Directors and Officers (D&O) insurance is typically made available to not-for-profits so that experienced professionals can serve on the Boards of these organizations without the fear of personal financial loss.
In today’s litigious society, even not-for-profit organizations and their Directors and Officers run the risk of being sued for an extensive list of alleged wrongdoing. They are susceptible to lawsuits alleging, among other things: discrimination (age, race, sex, employment, membership), harassment, wrongful termination, conflicts of interest, misleading reports or other misrepresentations, defamation, libel & slander (including through the use of social media), breach of fiduciary duty, wage & hour law claims and failure to deliver services.