The critical services provided by nonprofits comes with a risk. Below are common types of liability insurance. Given the widely diverse communities served and sizes of nonprofits, it is recommended to discuss your specific needs with a licensed liability insurance agent to determine the right level of insurance for appropriate risk mitigation (see below).
Directors and Officers Liability (D&O coverage)
Responds to claims alleging wrongful management decisions. A nonprofit board director or officer could be held personally liable for financial damages caused by that board member, and their personal assets could be exposed to the liability of the nonprofit. At a minimum it is recommended for nonprofits to have D&O Insurance.
General Liability (GL coverage)
Responds to claims alleging bodily injury and property damage (slip-and-fall scenarios). Coverage for damages to visitor, customer, supplier, associate who are injured on the organization’s property. Does not apply to nonprofit employees who are covered separately by worker’s compensation.
Professional Liability (PL coverage)
Responds to claims alleging negligence in the delivery of professional services (errors and omissions). Protects against liability claims associated with mistakes, misjudgments or malpractice as well as workplace-related claims such as discrimination or sexual harassment.
Related Resources:
NAO Member Benefit
NAO members receive special member pricing on D&O insurance and a free risk assessment.
Bliss Sequoia Insurance & Risk Advisors
NAO business members serving Oregon nonprofits:
Directory of Insurance Providers
Liability and the Board – Nonprofit Risk Management Center
Directors & Officers Liability Insurance – Nonprofit Quarterly
Nonprofits and Liability Insurance – BoardEffect