Why Insure Nonprofit Directors & Officers?
Nonprofit Directors and Officers have personal liability exposure by virtue of the management decisions made for their organization and its financial assets. Hazards faced by nonprofit organizations in Oregon include employment-related matters, breach of duty, and errors and omissions. Unfortunately, lawsuits against nonprofit organizations from employees, customers, vendors, and the government are becoming increasingly common.
- Directors and Officers liability
- Employment practices liability
- $100,000 sublimit for fiduciary liability and workplace violence
- Legal defense costs in addition to liability limit
- Prior acts coverage
- Volunteers, leased, seasonal, and part‐time employees
- Third party coverage
- Employed lawyers coverage
- $150,000 sublimit for defense for Fair Labor Standards Acts (FLSA) claims
- Personal injury coverage backstop
Risk management tools include:
- A toll‐free employment practice hotline offering complimentary telephone consultation services
- Sample workplace policies on preserving employment‐at‐will status, federal Family and Medical Leave Act compliance, and prohibiting harassment in the workplace
- A guide containing general information about employment claims, the hiring process, pre‐employment testing, and other potential workplace issues to help avoid workplace claims
- Directors & Officers Liability Claim Example
Private donors filed a misappropriation of funds lawsuit against a foundation’s Board alleging the foundation did not purpose their donations to align with the foundation’s mission.
- Employment Practices Liability Claim Example
A CFO filed a racial discrimination lawsuit against her former employer alleging she was terminated because of her race. The employer had documented the termination was for poor performance and attendance.
- Fiduciary Liability Claim Example
An employee filed a failure to disclose lawsuit against his employer alleging he was not informed his medical coverage was reduced when his employer changed medical insurance companies resulting in out-of-pocket medical expenses to the employee.
Without Directors & Officers Insurance in place these claim examples would be the financial burden of the organization and Board. The cost to the organization is dependent upon claim specifics. The above examples could range from $10,000 to over $250,000 in legal defense costs, awards, and settlement.
20% Discount Applied to Annual Premium for NAO 501(c)(3) Nonprofit Members.
For a quote, contact Bliss Sequoia, NAO’s program administrator, by visiting their website or by calling 503‐364‐5401 or 877‐364‐5401 (toll free).
“Our experience with Bliss Sequoia has been stellar, right from the start. Their agent is one of the most knowledgeable and responsive insurance professionals I have encountered. He helped us compare our prior policy to the NAO program, which provided us with increased liability coverage for only a small premium increase. We appreciate the benefits our NAO membership
provides and I recommend Bliss Sequoia to any nonprofit organization.”
Cheryl Snow, Executive Director
Clackamas County Arts Alliance
“Terry Brown, Board member of Lotus Rising Project, a small non-profit that works with LGBTyouth in Southern Oregon, contacted Matt Lokan with Bliss Insurance through a link on the Nonprofit Association of Oregon website, and started reviewing with him our Worker’s Comp, Liability and Directors and Officers insurance coverage that we had procured through another agent. Matt was attentive, punctual in his responses, and extremely helpful in assisting us in understanding our coverage and the areas in which we were under insured. As a result of his excellent service, we are now satisfied Bliss Insurance clients, and are still receiving the attention one might expect would be given to a “big fish in a small pond” rather than the “little fish in a big pond” that we are. I speak for Terry Brown and myself when I express that we couldn't be more pleased.”
Kathy Bates, PhD, Executive Director
Lotus Rising Project
“We switched our insurance agents to Bliss Sequoia this year. We decreased our premium and even reduced our deductible from 5,000 to 1,000. Even more importantly, Matt patiently guided me through the process of making decisions that best serve our organization. I highly recommend Bliss Sequoia.”
Christine Mallette, Executive Director
Illinois Valley Safehouse Alliance