Essential, affordable nonprofit D&O protection with multiple advantages.
Boards of directors are an essential part of nonprofit organizations’ structures and deserve to be well protected. Directors and Officers (D&O) Liability coverage, including fiduciary, from NIA offers a number of benefits:
- Flat-rate D&O for nonprofits with no employees: Only $600/year!
- For nonprofits with EPLI, NIA provides a $250,000 sublimit for wage and hour and also for breach of contract.
- The policy form is deductible-based and not subject to a self-insured retention. NIA bills the deductible when the claim is closed.
Insured by NIA:
Weehawken Creative Arts
Ridgway, CO
Flat Rate D&O
NIA’s flat rate D&O product is for 501(c)(3) nonprofit organizations with no employees. Specifically designed for nonprofits with no employees, this low-cost product provides D&O protection for nonprofit board members and the organization, but excludes coverage for any employment-related actions.
The flat rate is $600 for limits of $1,000,000. New and renewal members with no employees are eligible. General Liability is the core coverage that all of NIA’s member insureds carry. NIA does not write stand-alone Directors and Officers.
Insured by NIA:
Healing Paws for Warriors
Fort Walton, FL
Highlighted features of NIA’s Directors & Officers policies.
Summary of key features only. Actual policy language will differ.
- Deductible options available including $0
- Policy limit $1 million: aggregate limits to $2 million
- Umbrella limits up to $10 million available
- Flat rate D&O available for nonprofits with no employees
- Defense costs outside the policy limits
- Prior Acts Coverage available for an additional charge
- Broad definition of member-insured including the nonprofit organization as well as directors, trustees, officers, employees, volunteers, committee members, interns, students-in-training, and spouses
- Coverage extends to third-party harassment
- Broad Employment Practices Liability (EPLI) Coverage
- Fiduciary Liability Coverage included at full policy limit
- ERISA sublimit of $250,000 included with $500,000 available for additional charge
- Breach of Contract limit $250,000 for defense
- Wage and hour law violation limit $250,000 for defense
- Punitive damages covered in states where insurable
- FREE unlimited employment risk management consultations (for insureds with D&O Coverage and EPLI)
- Employee Handbook Builder – a highly subsidized subscription to the BLR Handbook Builder annual subscription cost is $99 ($300 savings)
- Individual member vs. individual member coverage included
Coverage checklist
This PDF allows you to print and compare coverage features with your clients.
Policy forms
Available for appointed brokers only on the NIA Broker Portal.
From the claims files:
Here are a few examples of how NIA’s Directors and Officers Liability coverage has helped nonprofits.
Claim involving four employees who claimed they had been wrongfully terminated for complaining about unpaid wages.
An employee with ongoing performance problems was eventually terminated, but alleged he was not given an accommodation due to stress in his personal life.
A nonprofit was sued by a builder for breach of a construction project contract, claiming unpaid contract damages.
List of coverages:
Here’s the menu of NIA’s nonprofit insurance offerings.
Coverage for a wide range of negligent acts which result in bodily injury, property damage, personal injury, or advertising injury. Liquor liability included at no extra fee.
Coverage for nonprofit employees, volunteers, and the organization for allegations of sexual and/or physical abuse. Event trigger and claims-made available.
Coverage for employees, volunteers, interns, students-in-training, and independent contractors for damages resulting from errors and omissions in the provision of certain professional services.
D&O, fiduciary, and employment practices (EPLI) coverage for the organization and its directors and officers, employees, and volunteers for allegations of wrongful acts. Affordable flat-rate D&O without EPLI for nonprofits without employees.
Coverage for vehicle fleets of all sizes, driven by employees or volunteers. Can include personal vehicles that are being used for nonprofit work.
Coverage for the physical assets a nonprofit owns or leases — such as buildings, office equipment, computers, furniture, etc. Generous, modified BOP, includes business income and extra expense.
Limited coverage for injury to a volunteer or participant (depending on the coverage) on a no-fault basis. May apply prior to (or in excess of) an individual’s health insurance policy.
While a $1 million limit works for most claims, umbrella liability provides the excess coverage some nonprofits may need.