03/04/2025
Just because an organization is a nonprofit doesn’t mean its directors and officers are free from duties or liabilities.
In a nonprofit, directors and officers have certain duties and responsibilities to act in a manner most beneficial to the nonprofit. These are known as their fiduciary duties. Some of the key duties of a director or officer include the duty of care, the duty of loyalty, and the duty of obedience.
When acting as a director or officer, there are some situations when one can be subject to personal liability for one’s actions. If uninsured, one lawsuit can have a huge impact on a nonprofit organization.
Luckily, Directors and Officers insurance (“D&O insurance”) allows for a way to mitigate the damage in scenarios like this.
Read more about why your nonprofit should have D&O Insurance and some key best practices when obtaining a policy in 2024 GCP Fellow Robert Bryant’s new whitepaper: https://www.napalegalinstitute.org/member-resources/why-and-how-nonprofits-should-maintain-directors-and-officers-insurance?fbclid=IwY2xjawI0Qx5leHRuA2FlbQIxMAABHTajBClcN_VjONvubQfvNzmaK5tEkcGuC0qmotwFfHMS4ba6bwhtswj6_Q_aem_tJexjnVgXWOfQc0NnYiSNw