Did you know that nonprofit organizations file twice as many D&O (directors and officers) claims than public and private companies, and 85% of claims filed are employment related, according to the Towers Watson Directors & Officers Liability Survey. Every nonprofit organization is at risk of a data breach as they keep and maintain donor financial files, employee records, client data, even volunteer data. Outlined here are seven case studies that highlight the potential impact on nonprofit liability — beyond financial costs, the damage to a nonprofit's reputation could lead to a decrease in donors, volunteers and public trust. Nonprofit organizations can face litigation from vendors, donors, competitors, employees and government regulators. Without the proper coverage, it can be difficult to cover costs of legal fees or damage awards if faced with a lawsuit. Patrick Baker, nonprofit D&O product manager at Travelers, outlines seven case studies that are based on actual claims, composites of actual claims, or hypothetical situations. Resolution amounts are approximations of both actual and anticipated losses and defense costs.

Related: D&O concerns identified in Willis Towers Watson survey

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Patricia L. Harman

Patricia L. Harman is the editor-in-chief of Claims magazine, a contributing editor to PropertyCasualty360.com, and chairs the annual America's Claims Event (ACE), which focuses on providing claims professionals with cutting-edge education and networking opportunities. She covers auto, property & casualty, workers' compensation, fraud, risk and cybersecurity, and is a frequent speaker at insurance industry events. Contact her at [email protected]

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