1. A board is more than just a fundraising squad
Sure, they may have signed up envisioning they would only be attending monthly meetings and maybe enjoying some appetizers at an annual charity gala. But in reality, board members are legally responsible for a nonprofit’s decisions. If someone on the board accidentally signs off on a suspicious investment in a llama farm (don’t ask how it happened), that could result in serious legal consequences. D&O (Directors and Officers) insurance can swoop in to protect them from lawsuits arising from these well-meaning but questionable choices.
2. Avoid lawsuits from disgruntled volunteers
It’s all fun and games until a volunteer of the month realizes he didn’t get that important job for the annual fundraiser. And now, he is filing a claim, convinced that he was unfairly overlooked because of his ethnicity and not because of the questionable choices he had made on the last event. He felt hurt and was going to make sure the board knew it. EPL (Employment Practices Liability) insurance protects nonprofits from claims by employees and volunteers who feel wronged.
3. For when board meetings go off the rails
Sometimes board meetings get heated. That’s what happens when everyone cares so much, right? But occasionally, the board makes decisions that do not align with everyone’s vision of the mission. Help your customers protect their organization when a member files a claim against the board for misappropriation of funds and not adhering to the mission of the organization. D&O coverage makes sure the organization has money in the bank to keep championing their cause and the expert defense attorney to help get the board out of hot water.
4. Because fundraising ideas can get … creative
Nonprofits run on passion and creativity, which is exactly why fundraising ideas sometimes go sideways — like the ill-fated Polar Plunge and Chili Cook-off that sent half the board home with frostbite. Good intentions can still lead to bad claims. Donors may give money for specific restricted purposes which are not always dedicated to crockpots of chili.
5. Protection from a misunderstanding (or twelve)
Working at a nonprofit sometimes brings together an eclectic group, and occasionally, people (and policies) are bound to clash. Did one person get promoted over three other tenured employees? Was reasonable accommodation not given to someone with a bad back? EPL insurance covers those accidental conflicts that could otherwise devolve into full-on legal battles. Plus, USLI policyholders have access to a free HR helpline that can help mitigate the issue before it becomes a lawsuit.
In summary, D&O and EPL insurance are the unsung heroes of your customer’s nonprofit. This protection allows the board members to focus on their purpose without worrying that every impassioned decision, volunteer spat or outlandish fundraising stunt could end in court. If there’s one thing nonprofits don’t need more of, it’s surprise legal fees.
Check out what we have to offer here, and quote with us three ways!
- Online: Online rating that is quick and easy
- Phone: Speak with a knowledgeable underwriter at 888-SPD-USLI
- Email: Submit your application for a turnaround in just three hours
