- Legal costs in defending proceedings brought against them alleging wrongful acts.
- Any damages awarded to the claimants against the Directors and Officers, including out of court settlements.
Relevance For Non-Profit organisations:
Although Directors’ and Officers’ liability insurance (D&O) often is associated with large for-profit companies, they are not the only ones that need it. Many people hold the common misperception that directors (including trustees) and officers of a nonprofit organization do not have a meaningful exposure to personal liability. The reality of today’s tenuous legal environment is quite the opposite.
The primary role of nonprofit directors and officers is to maintain financial stability and provide the necessary resources and environment to accomplish the goals and purposes of the organization. The unique nature of non-profit organizations presents directors and officers with difficult challenges in performing this role.
The limit of liability depends on the risk exposures, business scope and turnover of the non-profit entity. Some times companies also relate the limit of liability with the funding stage of the business.
Get in touch with PlanCover, a highly reputed insurance broker serving a wide range of businesses in the Indian market, to buy suitable insurance policies that practically benefit your company.
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