11 Reasons Why Businesses Need D&O Coverage

No good deed goes unpunished. In today’s litigious society, serving on a Not-for-Profit board of directors can expose individual members to unexpected legal, and financial responsibilities should someone take exception to or legal action against an organization. A good D&O policy can be a Not-for-Profit’s best friend for protecting its board members and freeing them to do their jobs without fear. Here are 11 reasons why Not-for-Profits should get D&O coverage.

  1. Reduce liability exposure to the board, officers and organization.
  2. Cover risks that a general liability policy cannot.
  3. Protect an organization from the high cost of legal defense for “wrongful actions.”
  4. Keep operating funds for operations.
  5. Enhance the defense while reducing the potential recovery by a claimant.
  6. Remove a barrier to recruiting top board members.
  7. Give board members the security to make the tough decisions.
  8. Get employment practices support and education for board and officers.
  9. Take advantage of a third-party review of employment practices, policies and procedures.
  10. Choose riders that suit an organization’s particular needs.
  11. Protect against claims of breach of contract.

Remember, one doesn’t need to be guilty or even in the wrong to require a defense. One in 100 Not-for-Profits face legal action in this country every year. Few have extra cash on hand to pay for legal bills. That makes a D&O policy a good investment for an organization.

2016-11-21T15:54:13-05:00
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