Do Georgia nonprofits really need directors and officers insurance?

Yes. Georgia nonprofits really do need directors and officers insurance, often called D&O. This coverage protects the people who lead the organization, your board members and officers, against claims that they made bad decisions in running it. Many board members serve as unpaid volunteers, and without D&O their personal assets, like their home and savings, can be exposed if someone sues.

People assume nonprofits do not get sued because they do good work. In reality, claims come from many directions: employees alleging wrongful termination or discrimination, donors disputing how funds were used, other organizations claiming unfair competition, or regulators questioning governance. A general liability policy does not respond to these. General liability covers bodily injury and property damage, like a visitor slipping at your event, not management decisions.

D&O fills that gap by paying defense costs and settlements tied to the decisions leaders make. Defense costs alone can run into the tens of thousands of dollars even when the nonprofit did nothing wrong.

Example: A small Atlanta nonprofit fires a program director who then sues the board for wrongful termination. The lawyers’ bills reach $45,000 before the case settles. With D&O, the policy covers that defense and any settlement. Without it, the organization, and possibly individual board members, pay out of pocket.

Strong volunteers often ask whether D&O is in place before agreeing to serve, so having it also helps you recruit good leadership. If your nonprofit operates in Georgia, this coverage is close to essential. Request a free coverage review and we will help you protect your board and your mission.