Understand Risks and Coverage Needs


Agents and brokers need to understand the operations of their nonprofit clients in order to help them obtain the best coverage.


“In the not-for-profit world, what we’re seeing is many of the companies have blended policies.”


Janet Dreifuss, Alliant


Agents and brokers need to understand what their clients’ exposures are as well as the various coverage options available in the marketplace to find the most suitable policy. Many nonprofits buy blended policies that provide both directors & officers coverage and employment practices liability coverage. Sometimes blended policies also include coverage for cyberliability and fiduciary liability.


Most nonprofits, like many private companies, have what is known as ABC-type D&O coverage. The A portion provides non- indemnifiable coverage, the B portion provides coverage for indemnifiable acts of directors and officers, and the C portion provides coverage for the entity.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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