Directors & Officers and Employment Practices Liability

Directors & Officers: Explanation of Coverage


Who is an Insured? 

Any director, officer or employee of the organization


Why the need for D&O insurance? 


Individuals who serve as the leadership and staff of the organization are fiduciaries of that organization.  They are responsible for managing the affairs of the organizations and must act with due diligence in discharging their responsibilities.  If the absence of such care causes a loss, the leadership can be held liable.


D&O Liability insurance functions as “errors and omissions” coverage to protect individuals who serve on the boards of an organization and make decisions for the organization.


The insurance company shall have the right and “duty to defend” any covered claim, up to the policy limit and will pay on behalf of the Insureds all judgments that the Insureds shall be legally obligated to pay.


Refer to our Digging Deeper resource for more information.


Employment Practices Liability: Explanation of Coverage


Who is an Insured? 

Any director, officer, employee or volunteer of the organization


Why the need for EPL insurance? 

Executive Directors, board members and others are responsible for abiding by employment laws in managing the workforce employed by nonprofit organizations.  This coverage protects the organization and its leadership from financial peril in circumstances of employment practice violations.


Common allegations:  Wrongful discharge, employment-related discrimination, sexual harassment