Bryson Blog

5 Benefits of D&O Insurance for Non-Profits

Non-profit organizations are exceptionally important to creating community. They often provide essential social services that benefit local communities. These organizations often rely on the leadership and direction of their board of directors. And the directors are often leaned on to make important decisions that shape the future of the non-profit organizations.
However with each decision directors and officers make on behalf of the non-profit organization they expose themselves to risk, even when acting in good faith. In the event of a claim, damage to personal reputation and personal finances are put at risk. In order to protect themselves, directors and officers (D&O) insurance for non-profit leaders is crucial and can provide the following benefits.

  1. Reimbursement for legal costs. In the event of a claim, D&O policies can provide defense cost coverage for a variety of claims. Specifically, D&O insurance can provide legal cost reimbursement to non-profit leaders following allegations of wrongful acts, financial mismanagement, errors in judgement and negligence.
  2. Peace of mind. D&O claims can come from a variety of sources. These include but are not limited to employees, recipients of services, government bodies and even donors. D&O insurance ensures that non-profit leaders are protected regardless of where claims originate, providing timely and effective coverage.
  3. Entity coverage. Depending on the type of D&O policy. A non-profit organization can go beyond protecting directors and officers and extend protection to the organization itself.
  4. Flexible customized limits. Coverage limited can be customized to be aligned with the size of the non-profit organization. In some cases, these limits can go as high as $10 million, depending on the size of the nonprofit.
  5. Protection beyond indemnification. While the bylaws of many non-profits require the company to indemnify and defend directors and officers who are sued, leaders shouldn’t expect this protection to be sufficient. That’s because a nonprofit’s duty to indemnify is only as good as its ability to pay. This means that, if the nonprofit is insolvent of not financially stable enough to cover the legal fees, directors and officers would have to cover these fees themselves.

In order for a non-profit organization to protect its mission and its board member’s personal assets, D&O insurance is a crucial insurance policy. Our team at Bryson Insurance can support your efforts in leading a conversation on Directors & Officers insurance. If you have a policy in place today, we would be happy to review and provide updated recommendations that match the needs of the current board.

Bill 148 Has Passed: is your business prepared (Webinar)

On November 22, 2017, the Government of Ontario passed Bill 148. Bill 148 makes significant amendments to Ontario's Employment Standards Act, 2000 (ESA), Labour Relations Act, 1995 (LRA) and the Occupational Health and Safety Act (OHSA).

Bill 148 raises the minimum wage, mandates equal pay for part-time, temporary, casual and seasonal employees doing the same job as full-time employees, and expands job-protected leaves for employees throughout the province.

To help navigate the changes, protect organizational reputation, and provide recommendations we asked Corette and Kourtney of new initiatives HR to join us for a webinar to answer your questions.