Organizational Structure

General Liability Insurance

The purpose of the general liability insurance is to pay for damages that the organization is liable for and to cover legal costs for its defense. These policies cover negligent acts that result in property damage or personal or bodily injury. Harm resulting from executive decision making or related allegations of wrongful employment practices is not covered by the general liability policy.

Errors & Omissions Insurance (E&O) protects the organization and managers from client claims stating managers have committed professional errors or are not able to perform what is promised in a contract. It is common for a nonprofit to insure its chief executive, chief financial officer, and other senior staff who are authorized to represent the organization or take action on its behalf.

Directors & Officers (D&O) Insurance, for the most part, does not overlap with your general policy; it is an extension. Please see more on this coverage under the heading D&O insurance.

Additional discussion on assessing what appropriate coverage entails