No! Our online application is the quickest way to apply for coverage, but if you prefer to complete a manual application, please contact our office at 312.987.9823 to request a paper application.
If your organization doesn’t fit within our underwriting guidelines for the online submission process (e.g. you select “Other” as the organization type), you will not be able to obtain an instant quote or purchase a policy directly through the website. These applications are submitted directly to our underwriting department through the website, and our team will be in contact with you within two business days to advise whether we can place coverage for you.
Yes. Our underwriting guidelines require your organization to have tax-exempt status in order to have coverage in our program.
If you have to hire lawyers in relation to a claim, your D&O insurance can act as a legal defense policy. Though many of the cases brought against boards are thrown out, you’re still going to have to pay legal fees if a claim is filed.
Simply stated, D&O insurance covers damage resulting from board decisions, but not bodily injury or property damage. It is important to understand that your personal liability insurance will not protect you from your actions on a board.
One-year premium costs typically are $1,000-$1,500 for a $1 million limit of liability coverage.
Deductibles can be based on the organization’s assets, and are typically between $1,500 and $5,000.
Not all D&O insurance policies are the same. Because there are several types of D&O coverage, it is important that your insurance provider develops a policy appropriate to your organization and situation.
Coverages can include:
Be sure to investigate the insurance underwriter and the financial integrity of that company.
Look for an underwriter company whose rating is “A” or better from A.M. Best & Co. and Standard & Poor. Choose the carrier that understands and provides the coverages and limits your organization needs.
D&O insurance provides financial protection for directors and officers in case of lawsuits and claims related to the performance of their duties for the organization. Nonprofits may not realize that their volunteer board members could be held personally liable for the actions of the organization and claims made against it. That’s why it is important to protect your directors and officers from potential costs of defense, settlements and judgments arising from any claims brought against your organization.
Nonprofit organizations can face a number of challenges that for-profit companies typically don’t encounter. Members of the board and officers of your nonprofit could be sued individually or as a group.
It may be challenging to attract and retain volunteer board members if your organization does not have D&O insurance. This is because potential members simply cannot afford to serve if there is a risk to their personal assets.
Policies usually include an organization’s executive director and a few key employees. They usually don’t include staff and non-board member volunteers or the organization itself.
The policy term is one year with a one-time payment upon application. We do not offer month-to-month policy coverage OR payments. Please note that our policies DO NOT auto-renew and we require you to re-apply every year.
Six major sources of potential lawsuits:
It depends on provisions in your organization’s articles of association or incorporation. However, liabilities which aren’t indemnified by your organization or corporation can be covered by D&O insurance.
There is no clear cut answer to this question. It depends on the nature of the claims or lawsuits.
Many states provide immunity from prosecution for voluntary service in a nonprofit. However, it is important to keep in mind that those laws are at the state level, and they are unique to the state in which your organization operates. Of course, volunteer service is no defense for acts of impropriety.
Know that state law does not provide immunity from federal statutes including ERISA, the Americans with Disabilities Act, Civil Rights laws and others
