The Right D&O Limits


One of the most important question nonprofits ask of their brokers is this: How much D&O coverage do we need?


“I don’t think enough people that are generous to be sitting on these nonprofit boards and dedicating their time are really spending a lot of that time thinking my wealth, my personal wealth, might be the biggest asset that this nonprofit has.” Maria Treglia, Program Brokerage Corp.


How much directors & officers liability coverage to buy is a crucial question that requires careful evaluation. The typical measures for purchasing coverage—assets, revenues and number of employees— are not really adequate. The more important question is who are the board members and what is their net worth because their personal assets may be at risk.


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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