Is Your Non-Profit Organization Protected with Directors and Officers Insurance?

Being asked to serve as a board member for any non-profit organization may seem like an honor and a privilege; however, there is more to your role than assisting in making executive decisions and facilitating organizational success and growth. One essential step before agreeing to serve as a board member is to research whether that non-profit has Directors and Officers (D&O) Insurance. If it doesn’t, you may want to reconsider to avoid any legal challenges you could face without insurance protection. Is your non-profit organization protected with Directors and Officers insurance?

Directors and Officers (D&O) Insurance

D&O insurance is designed to protect directors, officers, and other executives from claims initiated by former employees, current employees, members, or anyone else alleging negligence or wrongful acts during their tenure as board members. Despite being a non-profit organization, there are still assets to protect; therefore, most executives will require D&O Insurance to adequately protect their decisions, actions, assets, and reputation should claims arise.

Common Scenarios That Could Incite Legal Action for Directors and Officers at a Non-Profit

– Violation of responsibility resulting in the company’s financial loss
– Misrepresentation/mishandling of company funds
– Fraud
– Infringement upon competitors’ clients/stealing data
– Failing to comply with workplace laws, regulations, and standards

Paramount Insurance Agency for All Your Business Needs

Paramount Insurance Agency is a North Carolina-based independent insurance agency that understands your business needs and can provide various solutions, including D&O insurance, to adequately protect your small business within an affordable budget. Serving public, non-profit, and private businesses, we can assess the multitude of risks inherent to your specific business and design a custom insurance package best suited for your needs today.

Call us at 336-869-3335 to discuss the protection that your company executives need and deserve.