D&O Insurance explained - an introduction. One of the most discussed and least understood insurance products is Directors & Officers Liability (D&O) insurance. Sources: http://www.inc.com/guides/2010/12/how-to-determine-whether-to-insure-directors-and-officers.html www.agcs.allianz.com/insights/white-papers-and-case-studies/introduction-to-do-insurance/ http://www.dandodiary.com/2013/10/articles/d-o-insurance/fdic-statement-inveighs-against-do-insurance-exclusions-and-coverage-for-civil-money-penalties/ http://www.inc.com/guides/2010/12/how-to-determine-whether-to-insure-directors-and-officers.html http://www.nonprofitrisk.org/library/state-liability.shtml www.notforprofitins.com

1. D&O Insurance Explained
What is D&O Insurance?
One of the most discussed and least understood insurance products is Directors & Officers Liability
(D&O) insurance. Market watchers note that even some lawyers have their problems comprehending
what kind of coverage the insured managers have. Headlines are full of stories about "mega claims" of
several billions of dollars along with more and less informed commentaries discussing the principles of
this kind of insurance cover.
Download pdf here.
What D&O Insurance Cover
Nonprofit organizations can face a number of challenges that for-profit companies typically don’t
encounter. Did you know that the members of your board and your officers could be sued individually
or as a group? Claims could come from shareholders, employees, your clients, and third parties
including government agencies, so your board needs to be protected.
Learn the risks of doing business without the right coverage. More info here.
State Liability Laws for Charitable Organizations and Volunteers
Good Samaritan Laws. Volunteer Protection. Volunteer Immunity. Liability Limitation. Shield Laws.
Charitable Immunity. These terms, which have significant, as well as subtle distinctions, have been
used to describe laws that protect people and organizations in the nonprofit sector from claims,
lawsuits and allegations of wrongdoing. Beginning with an overview of the liability environment, this
fourth edition of State Liability Laws for Charitable Organizations and Volunteers provides a state-bystate review of the evolving landscape of charitable immunity and volunteer protection laws.
This publication has evolved over more than a decade. The initial research was conducted in the late
1980s with the first printed version available in 1990. We are pleased to present this fourth edition as
a free, online publication.
Download State Liability Laws for Charitable Organizations and Volunteers for Free

2. FDIC Statement Inveighs Against D&O Insurance Exclusions and Coverage for
Civil Money Penalties.
In an unusual step, the FDIC, the federal regulator responsible for insuring and supervising depositary
institutions, has weighed in on financial institutions’ purchase of D&O insurance. The FDIC’s October
10, 2013 Financial Institutions Letter, which includes an “Advisory Statement on Director and Officer
Liability Insurance Policies, Exclusions and Indemnification for Civil Money Penalties” (here), advises
bank directors and officers to be wary of the addition of policy exclusions to their D&O insurance
policies and also reminds bank officials that the bank’s purchase of insurance indemnifying against
civil money penalties is prohibited.
The agency’s brief two-page letter opens with the observation that the FDIC has “noted an increase in
exclusionary terms or provisions contained in depositary institutions’ D&O insurance policies.” The
agency notes that the addition of these exclusionary provisions “may affect the recruitment and
retention of well-qualifies individuals,” and that when the exclusions apply, “directors and officers may
not have insurance coverage and may be personally liable for damages arising out of civil suits.”
Source
How to Determine Whether to Insure Directors and Officers
Some small business executives believe that this type of policy, called D&O for short, is only for
publicly traded companies. Not true, experts say. Although privately held businesses don't risk
exposure to securities class action suits, a business doesn't have to have shareholders in order for its
directors and/or officers to be personally sued. "It really depends on if you have relationships with
vendors or customers, or if you intend to seek venture capital funding or other financial investors,"
says Lisa Jones, a vice president for private business management liability products for the Chubb
Group of Insurance Companies. "These are all external exposures for which small business executives
can be held accountable."
Read more here.