Why non-profit organizations and private companies need Directors & Officers (D&O) protection
Article information and share options
There is a widely-held belief that directors and officers of both non-profit organizations and privately held organizations are not vulnerable to legal actions relating to their managerial capacities. However, these leaders in both organization types are susceptible to the same type of lawsuits publicly-traded companies are subjected to and face a host of exposures.
Swiss Re Corporate Solutions' SwissGuard, a multi-coverage, management liability policy designed for non-profit and private companies offer needed coverage. It protects against claims derived from mergers and acquisitions activity, financial performance, employment matters and breach of fiduciary duty, among others. SwissGuard is available in all fifty states, including California. These products can be purchased individually or on a combined basis.
SwissGuard provides tailored coverage to companies across sectors, including manufacturing, professional services, healthcare, education and retail.
Key reasons why non-profit organizations and privately-held companies face lawsuits
- Misappropriation of funds or of mismanagement of assets
- The Board not following the organization's mission statement or fulfillment of its charitable work
- Conflicts of interest and self-dealing
- Shareholder Suits alleging inadequate or inaccurate disclosure in financial statements or private placement materials
- Regulatory actions or investigations
- Customer, creditors, competitor and vendor suits
Litigation stemming from the above and other allegations can affect the organization’s professional reputation and carry a financial burden that could, potentially, impact its ability to continue operating.
Why should your organization consider SwissGuard?
SwissGuard's products for non-profit and privately held organizations is a comprehensive policy designed to grant protection for Directors and Officers Liability, Employment Practices Liability and Fiduciary Liability for U.S. domiciled companies. Our policy addresses the above exposures and provides protection to the directors, officers, employees, volunteers and third parties.