Breach of Contract

The Nonprofit

A nonprofit focused on animal welfare.

The Situation

A nonprofit was sued by a builder for breach of a construction project contract, claiming unpaid contract damages. Breach of contract claims are generally not covered in D&O policies, but NIA’s forms contain an annual $250,000 aggregate defense-cost-only enhancement. Using that enhancement, NIA was able to retain an experienced defense attorney for the nonprofit. 

The Resolution

It took defense fees and costs to get the case into a settlement posture. The nonprofit was able to obtain a very favorable compromise on the contract damage issues. 

From the Claims Files stories like the one above are intended to be informational in nature. Please contact your insurance broker and/or agent for your specific coverage implications based on your specific situation.