D&O Insurance. Does Homeowners Insurance Cover me?

You may be asked at some point to serve on a board for an organization.  Most commonly, non-profit organizations have a purpose of fund-raising for their operations or some charitable cause.  Does your personal or even business insurance coverage protect you as a board member?

Short answer is no.  Boards should have Directors and Officers (D&O) insurance and they can secure that on their own and it would be paid for by the board.  D&O covers board members collectively for the decisions they make as the board to decide various things; how to raise money, distribution of funds of to charitable causes, who the company should hire, fire, etc.   Further, D&O covers individual members of the board if they are sued individually or as group.

D&O insurance for most smaller non-profit boards can be as low as $300 a year for $1,000,000 in coverage.  Pricing always depends on the purpose of the board, whether the board is for-profit or non-profit, how many board members, funds it has entrusted, etc.  The pricing of for-profit board can be considerably more expensive and typically requires more in-depth underwriting to price since exposures can differ significantly from non-profit D&O insurance.

Contact Fortified Insurance Agency in Manchester NH for more information on Directors & Officers Insurance coverage.