Frequently Asked Questions: Directors and Officers Insurance (D&O)

• What is directors' and officers' liability insurance?
  What is directors' and officers' liability insurance?

  Directors' and officers' liability insurance (D&O) offers your individual directors (high-level staff of organizations) and officers (Board members) the protection they need from personal liability and financial loss arising out of wrongful acts committed in their capacity as officers and/or directors. Example: If the Executive Director of an organization runs off with the company's money, this would cover the Board Members and other high-level staff if they were sued. One can also elect to include Employment Practices coverage as well, which covers things like sexual harassment, discrimination, and wrongful termination suits.

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• What are the limits of this insurance?
  What are the limits of this insurance?

  The general aggregate on this insurance is $1,000,000.

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• Is there a deductible?
  Is there a deductible?

  There is a $2500 deductible on certain claims.

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• How much does it cost?
  How much does it cost?

  Each policy must be individually underwritten by the insurance company, so we can't guarantee a particular rate in advance. However, we can report that to date, policies for non-profit organizations with under 10 staff members have been about $650-$900 (before our binder fee). Adding Employment Practices coverage will most likely double the premium, or at least add $500 to the price. These are annual policies.

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• What can be insured under these policies?
  What can be insured under these policies?

  Any and all types of non-profit arts organizations (and those of a non-profit nature, e.g. fiscally-sponsored organizations) can be insured under these policies.

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• What isn't insured under these policies?
  What isn't insured under these policies?

  For-profit arts organizations cannot be insured under this specific program, but we can ask the broker if there is a way to obtain a quote for such groups.

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