Surviving the D&O Turmoil: Maximizing Protection for the Non-Profit and Its Directors and Officers

March 10, 2004

Today – more than ever – corporate management is under attack.  In the wake of the Enron debacle, corporate decisions are carefully scrutinized, and the conduct of the company’s directors and officers is now constantly under the watchful eyes of investors, creditors, and government regulators.  Like their counterparts in the for-profit world, directors and officers of non-profit corporations are also vulnerable to lawsuits arising from their activities as directors and officers.  Non-profit directors and officers, contrary to popular belief, do not enjoy any general statutory immunity.  Although statutory protections may insulate them to a limited extent, the hard, cold truth remains that non-profit directors and officers can and do get sued, and, if the non-profit corporations for which they work fail to provide the maximum amount of risk protection available for their services, they can end up paying legal expenses and judgments out of their own pockets.

The purpose of this paper is to equip directors and officers with a basic understanding of D&O insurance and to introduce some key emerging issues under the D&O policy.

Email Disclaimer