Nonprofits' Secret Weapon Protect Directors and Officers
Real-World Examples and Statistics
According to a survey conducted by the Nonprofit Risk Management Center, nearly 63% of nonprofits reported facing a D&O claim at some point1. These claims can arise from a variety of scenarios, including employment-related issues, regulatory non-compliance, or even disputes over membership rights. The financial impact of these claims can be significant, with defense costs alone potentially reaching hundreds of thousands of dollars.
Cost Considerations and Coverage Options
The cost of D&O insurance for nonprofits can vary widely based on factors such as the size of the organization, the scope of its operations, and its claims history. On average, small to mid-sized nonprofits might expect to pay between $600 and $2,500 annually for a policy with a $1 million coverage limit2. However, it's essential to compare different policies and providers, as coverage terms can differ significantly. Some policies might cover legal fees and settlements, while others may also include coverage for regulatory investigations.