top of page

Directors & Officers Insurance For Non-Profits

Coverage for the officers and board of directors in the event of a lawsuit


A non-profit’s board of directors is vitally important to their company. The board makes major decisions like establishing the organization’s goals and strategies, seeking out and securing donors, and deciding how funds will be spent. Your board of directors needs liability protection for their decisions, and, at Slade & Collins Insurance, we provide the right policy. Our Directors & Officers Insurance for non-profits protects board members and officers against legal expenses in case there is a lawsuit related to a decision they made on behalf of the organization.

What Is Covered by D&O Insurance?

Directors & Officers Insurance for Non-Profits helps provide coverage for the officers and board of directors related to three different categories:

  • Mismanagement of Funds - This category includes a wide variety of possible risks, including making poor investments, misusing funds, failure to detect embezzlement of funds, improper self-dealing, and misleading reports. These types of allegations require more proof, but even if a lawsuit is found to be without merit, the related attorney and court fees could significantly drain your non-profit’s finances. 

  • Failure to Meet Regulatory Standards - This category includes all regulations, compliances, and standards your non-profit must meet. Failures include violations of bylaws, failure to file annual reports, unfair employment practices, creation of false reports, and inability to acquire necessary licenses and permits. These failures can result in fines and legal fees that D&O insurance will help pay for.

  • Failure to Perform Official Duties - If an officer, director, employee, or volunteer fails in their official duties, it can result in a lawsuit. This includes inefficient administration, continual absence from meetings, and violating the mission statement of your non-profit. These types of failures often result in removal from the company.

D&O Insurance vs. Professional Liability Insurance

The coverage for Directors & Officers Insurance for Non-profits might sound similar to the coverage provided by Professional Liability Insurance. However, there are a couple of differences.

  • Professional Liability Insurance is coverage related to lawsuits brought against the company by clients and customers. At the same time, Directors & Officers Insurance also covers grievances brought up by regulatory agencies and even others within the non-profit organization.

  • Most business insurances, including General and Professional Liability Insurance, protect the company and its assets by paying legal fees, settlements, fines, and other expenses. D&O Insurance for non-profits protects the company and the individuals making the decisions and stops lawsuits from being able to take personal assets from the decision-makers.

Why Get Directors & Officers Insurance?

If you run a non-profit, you might wonder why you should get D&O insurance. Perhaps you aren’t worried about the decisions your board will make, or maybe you feel your company is too small to need the coverage. This is simply not true. Not only does having non-profit insurance help keep your company and board members safe, but it also attracts better organization members. Potential board members, officers, and employees who might not have considered working for your non-profit will be drawn in if they know their assets will be protected.


On the flip side, if you choose not to purchase Directors & Officers Insurance, there is the possibility you will lose valuable company assets. Directors, officers, employees, and even volunteers like to feel like they are being valued and cared for. If they are in danger of losing their personal assets due to a lawsuit, they are much less likely to continue in their current position. If you want to protect and retain your board members, you need to ensure you provide them with the necessary resources, including non-profit insurance.

Cost of D & O Insurance

When determining the cost of Directors & Officers Insurance for non-profits, Slade & Collins works with our underwriters to find the best available coverage. To determine the level and cost of coverage, we examine the following factors:

  • Services Offered - This includes animal adoption, counseling, performance, etc. The more risk a service presents, the higher the premium will be.

  • Equipment & Property - We will carefully evaluate the assets of your non-profit to determine its monetary worth.

  • Location & Number of Employees - These basic metrics help determine the amount of coverage you need and what the regulations are in your area. Costs also vary based on location. 

  • Revenue - The amount of money a non-profit brings to the table affects the policy's risk and cost.



For more information on Directors & Officers Insurance for your non-profit, request a quote or contact Slade & Collins Insurance today. We are located in Lexington, KY, and we proudly serve Kentucky, Ohio, Indiana, and Tennessee.

bottom of page