Board of Directors Insurance for Nonprofits in North Carolina

What Is Board of Directors Insurance?

Board of Directors Insurance—also called Directors and Officers (D&O) Liability Insurance—is designed to protect the personal assets of nonprofit leaders and board members if they’re sued over decisions made while serving the organization.

It doesn’t just protect individuals—it safeguards the organization’s reputation and financial stability as well.
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Why Nonprofits in North Carolina Need D&O Coverage

Nonprofits face many of the same risks as for-profit businesses. Board members make decisions about budgets, hiring, programs, fundraising, and compliance—all of which could lead to allegations of wrongdoing, even if no actual mistake occurred.

Without D&O insurance, board members could be personally responsible for legal costs and damages, which makes it harder to attract qualified leadership.
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Common Claims Against Nonprofit Boards

D&O policies typically cover claims involving:

• Mismanagement of funds or budgets
• Employment-related disputes (wrongful termination, discrimination, harassment)
• Failure to follow bylaws or governing rules
• Conflicts of interest
• Misrepresentation or negligence in decision-making
• Errors in fundraising or grant management
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What D&O Insurance Covers

While details vary by carrier, most policies include:

• Legal Defense Costs: Pays for attorney fees, court costs, and settlements.
• Personal Asset Protection: Shields individual board members from personal financial loss.
• Coverage for Past, Present, and Future Board Members: Often extends protection to officers, directors, trustees, and committee members.
• Entity Coverage: In some cases, covers the nonprofit itself for certain claims.
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What’s Not Covered

• Fraud or intentional illegal acts
• Bodily injury or property damage (covered under general liability)
• Professional services errors (covered under professional liability/E&O)
• Criminal acts
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How Much Does It Cost in North Carolina?

For small to mid-sized nonprofits, D&O insurance can start as low as $500–$1,500 per year, depending on the organization’s size, budget, and risk factors.
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Why Work with Sizemore Insurance

We understand the unique challenges nonprofits face in North Carolina. Our advisors will:

• Review your nonprofit’s structure, activities, and budget to identify risk exposure
• Shop top-rated carriers for coverage that fits your needs and budget
• Ensure your policy aligns with your bylaws, contracts, and funding requirements
• Offer additional coverage options like general liability, cyber liability, and volunteer accident coverage

With 45+ years serving communities across the state, we know how to protect your mission—and the people behind it.

Get a Quote for Nonprofit Board of Directors Insurance

Protect your leadership team so they can focus on making an impact.

Start your quote online or call (910) 791-1011 to speak with a Sizemore Insurance advisor.

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