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 personal exposure does a Georgia company face without directors and officers and employment practices coverage?

All FAQs

Quick answer: Directors and officers liability covers the individuals on your board and in leadership from personal liability for business decisions.

Running a Georgia company without directors and officers (D&O) and employment practices liability coverage leaves the people making management decisions personally exposed. Their homes, savings, and retirement accounts can all be reached in a lawsuit that targets how the business was run or how employees were treated.

What personal assets are at risk when a Georgia company lacks D&O coverage?

D&O insurance protects executives, board members, and managers when they are sued over business decisions. That includes contracts, financing choices, vendor relationships, and strategic direction. Without it, any claimant, whether an investor, lender, or business partner, can pursue the individual person, not just the business entity. Personal savings, real estate, and investment accounts are all reachable under Georgia law.

For example, a managing partner of a Decatur technology firm could face a personal lawsuit from an investor alleging that a strategic pivot caused a material loss, even if the decision was made in good faith. Without D&O coverage, that lawsuit reaches the individual directly.

What does employment practices liability insurance cover?

Employment practices liability (EPL) protects the company and its leaders against claims from current or former employees. Covered claims include wrongful termination, discrimination, harassment, and retaliation. The EEOC filed 81,055 workplace discrimination charges nationally in fiscal year 2023. Georgia employers accounted for a meaningful share of those filings. Even a claim that never reaches a courtroom carries real legal costs.

How much does it cost to defend an employment claim in Georgia?

Defending a single employment claim, even one that gets dismissed, commonly runs between $50,000 and $100,000 in attorney fees and related costs before any settlement or judgment. Without EPL coverage, that bill comes out of company operating funds or the personal assets of the people named in the suit.

For example, a former employee of a Fulton County company files a discrimination claim after being let go. The legal defense runs $70,000 before a $40,000 settlement is reached. With EPL, the policy handles those costs, subject to the deductible. Without it, the company and possibly its owners absorb the entire amount.

Which businesses in Georgia face management liability exposure?

These exposures are not limited to large corporations. Nonprofits, startups, professional services firms, and family-owned businesses face the same risks. Any organization with employees and any person with a management title carries some degree of personal liability. Private companies are often more exposed than public ones because D&O claims at smaller firms tend to target individual decision-makers directly rather than the entity.

How are D&O and EPL typically packaged?

D&O and EPL are typically purchased together as part of a management liability package. Coverage limits, exclusions, and deductibles vary by carrier and by the size and structure of the business. Buying both together generally costs less than purchasing each policy separately and avoids gaps when a claim involves both a business decision and an employment allegation. A coverage review can identify the right structure for your organization and confirm where your leaders are exposed. Request a free coverage review at olivecover.com/coverage-review to get a clear picture of where your management liability stands today.