D&O Insurance
for Ministries
Directors and Officers (D&O) Liability Coverage can add a layer of protection to help shield leaders serving the body of Christ against personal liability.
Protect Your Leaders
What is D&O coverage?
Leaders care about managing their ministries well. Yet, even when making decisions that align with the best interests of the ministry, lawsuits could arise that challenge those decisions. If sued, their personal assets could be at stake.
Directors and Officers Liability Coverage protects against financial damage claims based on the decisions made by ministry leaders. It adds a layer of protection for your leaders and your ministry. It can show your leaders that caring for them is top of mind for your ministry.
- What does D&O cover?
- Pays legal costs to defend your ministry and its leaders.
- Covers financial damages your ministry or its leaders must pay due to wrongful leadership activities on behalf of the ministry.
- Protects pastors, administrators, elders, trustees, deacons, board members, directors and officers, and their spouses.
- Provides protection for situations not typically covered by volunteer immunity laws or general liability insurance coverage.
A broad form endorsement is also available that covers employees, appointed persons, and volunteers engaged in leadership activities on behalf of your ministry.
- Does D&O cover spouses?
Yes, Directors and Officers coverage from Brotherhood Mutual includes coverage for the spouses of leaders.
- Should a nonprofit have D&O insurance?
Yes, consider the following scenarios in which D&O coverage would apply:
- When the IRS learns that a camp retreat center’s board funded a local politician’s campaign, it revokes the center’s nonprofit status. Key donors sue the board, saying the revoked tax exemption cost them money.
- A contractor hired to widen a drainage ditch on a college campus damages a highway bridge, forcing a road closure that affects area businesses for months. Upset that the road closure cost them $500,000 in lost revenue, the businesses sue the contractor and the university, claiming negligence in selecting this contractor.
- Church leaders decide to stage a 40-day protest at a local adult bookstore. They urge members to picket outside the store, discouraging people from entering. The bookstore owner sues church leaders over lost business.
These coverage descriptions are intended to help ministry leaders better understand Brotherhood Mutual’s MinistryFirst® insurance program. It does not provide insurance coverage of any kind, nor does it modify the terms of any Brotherhood Mutual policy. For complete insurance coverage details, please refer to actual policy documents. Coverage for actual claims will be based on applicable policy documents applied to the individual facts of an actual claim event. Some coverages may not be available in all states.
Talk to an Agent
