Lawsuits disrupt the function of a nonprofit organization, and the associated legal fees can put even a fiscally prudent organization at risk of bankruptcy. The most critical members of a nonprofit that need to be protected are its directors and officers, whom lead and advance the interests of the organization. Directors and officers insurance nonprofit provides monetary support for legal expenses and indemnity if lawsuits threaten your organization or its leaders. These individuals have significant exposure to risk. Even if they are not aware that they are in the wrong, they can still be held liable for any damages caused by their actions. Common suits can include allegations of internal mismanagement, issues of employment practice, or failure to disclose conflicts of interest.
Consult with Insurance Professionals to Obtain the Best Plan
When you consult with an experienced insurance company that offers directors and officers insurance nonprofit plans, they will help identify your nonprofit’s exposure risk and how your organization can prevent or prepare for legal issues common to your situation. These professionals will also have the industry experience to create a custom insurance plan specific to your organizational needs that will keep your costs low and protect your nonprofit’s interests if lawsuits arise. Do not wait for legal troubles to put your company at risk, get directors and officers insurance for nonprofit to protect your organization.