Boards of Directors and Officers can be sued by anyone – donors, employees, the general public, third parties, clients, and/or government agencies. Directors & Officers (D&O) insurance can help protect a board member’s home, investments, or other personal assets.
The organization’s bylaws may indemnify the Board but does not guarantee the entity has the resources to fund the cost of a claim. Because the average cost of a claim is over $100,000 it can have a devastating effect on the organizations finances. The financial backing of a Directors & Officers policy will ensure financial solvency to the organization.
Directors and Officers claims are not covered under General Liability or any other policy form.