Making your nonprofit clients realize the extent of the risks they face is often the most difficult part of selling nonprofit D&O. Venable LLP, a law firm specializing in nonprofits has an older, but still very relevant, article on The Top 10 Legal Risks Facing Nonprofit Boards. Here’s a link to the original article, and we’ve summarized the legal risks below.

  • Exposures from social media use, misuse and naivete
  • Unhappy staff and volunteers
  • IRS Form 990 and federal tax-exempt status
  • Copyrights and trademarks
  • Lobbying and political activity compliance
  • Third-party sexual harassment
  • Failure to limit contracting authority and other common mistakes in contracting
  • Lack of synchronicity in board policy and practice
  • Failure to understand and manage conflicts of interest
  • Reliance on the goodwill, good nature, and insurance coverage of others

Some of these items are best covered through other risk management techniques, but we’d be happy to discuss the insurance solutions for the rest with you.


ALTRU, LLC is a Managing General Underwriter that specializes in directors & officers (D&O) and organization liability for non-profit organizations, as well as Miscellaneous Professional Liability (MPL) for a wide range of service firms. ALTRU provides underwriting services on behalf of Old Republic Insurance Company, rated A+ (Superior) by A.M. Best, A+ (Stable) by S&P and A2 (Stable) by Moody's. The team at ALTRU builds solid, professional relationships and delivers a superior level of service to their network of retail insurance agents, which sets them apart from other industry wholesalers.