Directors & Officers Insurance for Nonprofit Boards
Protection for the people who lead your mission — plus the full range of coverage your nonprofit needs.
Having insurance is good. Having the right insurance is much better. At Taylor & Associates Insurance Agency, we understand that nonprofits carry a risk most businesses never touch: a board of directors, often volunteers, making real decisions with real consequences.
When something goes wrong — a personnel dispute, a funding decision that upsets a stakeholder, an allegation of mismanagement — it’s often the board members personally, not just the organization, who get named in the claim. That’s what Directors & Officers (D&O) insurance is built to answer.
What Does D&O Insurance Cover?
D&O insurance responds to “wrongful act” claims — allegations of mismanagement, a breach of duty, or an improper decision — brought against the organization, its board, or its officers. For most nonprofits, it’s typically packaged with Employment Practices Liability (EPL), since the most common trigger for a nonprofit D&O claim isn’t a boardroom scandal — it’s an employment dispute.
- Breach of fiduciary duty claims from donors, members, or regulators
- Employment-related claims — wrongful termination, discrimination, harassment, retaliation
- Mismanagement or oversight allegations tied to how funds or programs were handled
- Regulatory inquiries and investigations
- Legal defense costs — often the largest expense in a claim, regardless of the outcome
Even a small, all-volunteer board needs it. Volunteer board members can be held personally liable — their own assets, not just the organization’s, can be at risk without coverage. Many funders and lenders now require proof of D&O before they’ll write a grant or sign a contract, and it’s one of the simplest ways to make board recruitment easier.
Already have general liability and think you’re covered? General liability responds to bodily injury or property damage; D&O responds to claims about decisions, management, and employment. Most nonprofits need both — see the FAQ below for more.
Coverage Offered
D&O is the headline, but it’s one piece of a complete nonprofit insurance program built around your organization’s actual programs and risk.
Governance & Employment
- Directors & Officers (D&O) Liability
- Employment Practices Liability (EPL)
- Social Service Professional Liability
- Umbrella / Excess Liability
General & Auto
- General Liability
- Business Auto Liability
- Non-Owned / Hired Auto Liability
- Auto Physical Damage
Property & Specialized
- Businessowners Property
- Employee & Volunteer Dishonesty
- Volunteer & Participant Accident
- Cyber Liability — see details
Who We Cover
We work with nonprofit boards and organizations across a wide range of missions, including social & human services agencies, community & civic organizations, arts and cultural organizations, environmental & conservation groups, animal welfare organizations, educational nonprofits and scholarship funds, health-focused nonprofits, professional & trade associations, and youth development & mentoring programs.
Not sure your organization fits one of these categories? Give us a call — nonprofit risk varies a lot by mission, and we’ll tell you plainly whether it’s a good fit.
Why Nonprofits Trust Taylor & Associates
- Independent Advantage: As an independent agency, we represent multiple carriers that specialize in nonprofit risk — not just one insurer’s appetite and pricing.
- Experienced Advisors: Our commercial lines team has spent 30+ years working nonprofit and community-organization accounts.
- Local & Personal: A small-town, family-owned agency — proud to protect the organizations serving our own communities.
- Customized Protection: We don’t just check boxes; we build coverage around your mission.
Frequently Asked Questions
Do small or all-volunteer nonprofits really need D&O insurance?
Yes. Board members can be held personally responsible for decisions made on behalf of the organization, whether they’re paid staff or unpaid volunteers. A single employment dispute or funding disagreement can trigger a claim large enough to threaten personal assets without coverage in place.
What's the difference between D&O insurance and general liability?
General liability covers bodily injury or property damage claims, like someone getting hurt at an event. D&O covers claims about decisions and management — allegations that the board or officers mismanaged the organization, mishandled funds, or made an employment-related mistake. Most nonprofits need both.
Is D&O insurance required for nonprofit board members?
It’s rarely legally required, but it’s increasingly expected. Many grantors, lenders, and partner organizations now ask for proof of D&O coverage before funding or contracting with a nonprofit, and it’s a common condition board members set before agreeing to serve.
Does nonprofit D&O insurance cover employment claims?
In most nonprofit D&O policies, yes. Employment Practices Liability (EPL) is typically bundled in, since employment-related disputes such as wrongful termination, discrimination, and harassment are the most frequent source of nonprofit D&O claims.
How much does nonprofit D&O insurance cost?
It depends on your organization’s budget, staff size, programs, and claims history, so there’s no flat rate. The fastest way to get an accurate number is a quick call or our online quote form — we’ll match you with carriers that specialize in nonprofit risk rather than pricing you like a for-profit business.
Proudly Serving Nonprofits Across Our Region
Lewisburg · Dayton · New Lebanon · Eaton · West Alexandria · New Paris · Brookville · Englewood · Clayton · Vandalia · Greenville · Arcanum · Richmond, IN — serving Preble, Montgomery & Darke counties, Ohio, and Wayne County, Indiana.
Protect the People Who Lead Your Mission
Talk to an agent who understands nonprofit risk — no generic quote, no runaround.
Looking for the broader picture of nonprofit coverage? See our Non-Profit Insurance overview.
