Do Georgia nonprofits really need directors and officers insurance?

Georgia nonprofits with a board of directors should carry directors and officers liability. Board members have personal legal exposure for decisions they make, even as volunteers.

Do nonprofits need management liability insurance?

Yes. Nonprofits face the same management lawsuits as for-profits including discrimination claims, board decisions, and employee issues. Management liability typically includes directors and officers, employment practices, and fiduciary liability coverage.

What does management liability insurance cover?

Management liability is an umbrella term for coverages protecting a company and its leaders from claims arising out of business decisions and governance.

What makes Berkley Management Protection a strong choice for directors and officers and employment practices coverage?

Berkley Management Protection specializes in management liability: directors and officers, employment practices liability, and fiduciary liability.

What is abuse and molestation coverage and why does a Georgia nonprofit need it?

Georgia nonprofits running programs with minors or vulnerable adults need abuse and molestation coverage as a critical liability layer.

Management Liability FAQs

What does claims-made mean for management liability insurance?

All FAQs

Quick answer: Claims-made means the policy only covers claims reported during the active policy period, regardless of when the underlying event occurred.

Claims-made means the policy only covers claims that are both made against you and reported to the insurer while the policy is active, regardless of when the underlying problem actually happened. Most management liability policies, including directors and officers (D&O) and employment practices liability (EPL) coverage, are written this way, so understanding how the trigger works is essential before you buy or renew.

How is claims-made different from occurrence coverage?

This differs from home and auto policies, which are occurrence-based. An occurrence policy covers an event that happens during the policy period no matter when the claim is filed, even years later. A claims-made policy cares about the date the claim is brought, not the date of the wrongful act. Both dates matter, but in different ways, and the full claims-made versus occurrence distinction shapes how long your coverage actually protects you.

What three mechanics control a claims-made policy?

Three mechanics control whether a claims-made policy responds. First, the claim must be made and reported while the policy is in force, or during an extended reporting period, called a tail, that you purchase after the policy ends. Second, a retroactive date sets how far back the policy will reach for covered acts. Events that occurred before that date are an exclusion and will not be covered. Third, continuous coverage without a lapse is critical, because a gap can expose you to claims tied to past acts that no longer have a policy in place when the lawsuit arrives.

What happens when a lapse or retroactive date change leaves a gap?

For example, a company makes a promotion decision in 2024 that an employee challenges as discriminatory. The lawsuit is filed in 2026. If the EPL policy is active in 2026 and the retroactive date reaches back to 2024, the claim can be covered. If the policy lapsed at any point between 2024 and 2026, or if the retroactive date was reset to 2025 at renewal, that claim can fall through the cracks entirely.

For example, a Georgia nonprofit replaces its D&O carrier at renewal without purchasing a tail coverage endorsement. A board member decision from two years earlier becomes a lawsuit six months after the switch. Because the old policy is gone and no tail was purchased, neither the old carrier nor the new one responds to the claim.

What do management liability claims cost in Georgia?

Costs for management liability claims in Georgia can run from $50,000 to well over $250,000 once legal defense, settlements, and administrative costs are factored in. Defense costs alone on an employment practices claim regularly exceed $75,000 even when the company prevails. Claims-made coverage is particularly common for management liability and professional liability because these claims often surface long after the act that triggered them, and pricing the risk on a claims-made basis gives insurers a cleaner way to manage that tail exposure.

Who should review their claims-made policy terms?

Any business with employees, a board, or outside investors should understand how their retroactive date and tail options are set. A licensed advisor can confirm whether your current policy has any coverage gaps. Request a free coverage review at /coverage-review/ for a plain-language walkthrough of your management liability terms.