Some of its coverages are: Defense expenses, extension of defense coverage for spouses, heirs, and legal representatives.
Non-profit Directors and Officers (D&O) Policy
Non-profit organizations contribute to our society by educating our children, caring for the infirm, preserving the land, art, and music, feeding the helpless, protecting the environment, and promoting our culture, among other things.
The members of a Board of Directors and Officers are the persons responsible for leading and ensuring that the purpose of the non-profit organizations is fulfilled. They have a fiduciary responsibility to act and make decisions in the best interests of the entity, and to safeguard the assets of the organization, which, ultimately, benefits us all. However, even the most specialized and qualified Board may encounter unexpected threats that, due to the complexity of their nature, are better mitigated through an insurance policy.
The non-profit Directors and Officers Professional Liability (D&O) policy provides to the members of the board the protection necessary to do their work and perform professional obligations with the peace of mind that their personal assets are not at risk, and it covers third party claims stemming from allegations of negligence, errors, or omissions in their professional performance as members of the Board.
The “D&O” policy contemplates defense expenses and compensation for claims under the policy. Some of these basic coverages are:
- Coverage for defense expenses.
- Extension of coverage to spouses, heirs, and legal representatives of the Directors and Officers.
- Option to cover the entity.
- Extension of the period to report losses filed during the term of the policy.