Nonprofit Insurance Program

Common D&O Claims

By Alexa Connelly
April 04, 2012

Many organizations do not see the need for Directors and Officers protection.  Below you will see some common claims that arise with other organizations.  Keep these in mind when you are shopping for your insurance.

  1. A club secretary sued the country club’s governing board, alleging that the directors and officers were negligent for failing to supervise the club manager, who she claimed sexually harassed her.
  2. The personal assets of the directors and officers of a non profit organization were exposed when the organization ran out of funds to pay for a suit brought against it.
  3. A YMCA advertised an open position for a camp counselor. The organization received seven applications. Of the seven applicants, one man was not chosen to be interviewed. This applicant alleged he was not interviewed because of his age, and he filed suit against the non profit organization for age discrimination. The organization denied any wrongdoing but settled the case for $15,000 to avoid full litigation costs.

Could your Nonprofit Organization be impacted by a claim similar to these?  If you answered yes, then your Nonprofit Organization has a need for Directors & Officers Liability Insurance. Check with your insurance agent to make sure that you are properly covered.

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