Just in case anyone stumbles across this post, I just thought I'd clarify what type of coverages a non-profit organisation like this might need. Here's a quick run-down of the products discussed:
D&O protects a non-profit's directors and officers from managerial related claims, including allegations such as mismanagement, misstatement, wrongful acts and errors made in their role. A typical policy usually has two insuring clauses; Side-A, which protects individuals when the organisation can't financially assist them, and Side-B which reimburses the organisation for any funds spent defending its managers.
Small non-profits such as this one will often purchase what is known as Management Liability insurance (ML). ML is a broader type of D&O policy designed specifically for the needs of small and medium enterprises. In addition to D&O, which comes as standard, ML often includes a range of other coverages such as:
- Executive liability: standard D&O coverage for managers
- Corporate liability: broad civil liability coverage for claims made against the entity
- Employment practices liability: entity coverage for employment-related claims
- Trustee liability: entity coverage for claims arising from the management of retirement, superannuation or 401k schemes
- Crime: coverage for crime committed against the entity, such as fraud and misappropriation
- Statutory liability: entity coverage for pecuniary penalties and possibly fines, resulting from breaches in legislation
- Taxation investigation: coverage for investigations undertaken by taxation authorities
Professional indemnity (PI), also known as Errors and omissions (E&O), protects the non-profit for any services or advice it provides to its customers or stakeholders. If its services or advice is incorrect or results in financial loss to another party, PI insurance will cover the legal costs of defending the claim. If the advice is considered incidental and low risk, an underwriter may offer it under the ML policy (above).
General liability (GL) covers the non-profit for any physical risks it may have. Specifically, it protects it against any personal injury or property damage caused to a third party, such as its customers, stakeholders or the general public. Injury to employees or volunteers would not be covered under this; you would need some form of workers compensation or personal accident insurance.