Directors & Officers liability insurance provides financial protection for a foundation and its directors, officers, employees, and volunteers in the event of a lawsuit.

Does Your Foundation Need D&O insurance?

A foundation doesn't have to be in the wrong to be sued. D&O insurance protects foundations by covering costs—defense, damages, or settlements— that result from addressing actual or alleged violations in court. About 90 percent of D&O claims are employment-related issues—wrongful termination, harassment, discrimination. About 40 percent of these are straight termination cases. The Council on Foundations endorses the D&O liability insurance program provided through Aon Association Services and underwritten by The Hartford. The Council does not believe that D&O insurance is right for every foundation. Rather, we encourage you to decide, in consultation with your foundation's legal counsel, if D&O insurance is the right choice for your foundation's needs.

Who is eligible for the Council-endorsed D&O insurance program?

The Council-endorsed D&O program is available to all grantmaking foundations as a service to the field. Coverage is available in all states. Brokers can access the Council's D&O program through Aon Association Services. 

Is there a discount for Council members?

A discount is available to grantmakers with current membership in the Council or in one of the participating regional associations of grantmakers in states where the discount is approved.* To find out if your regional association participates, check with your regional association, Aon, or the Council.

How to get started

Download an application and other materials at Aon's D&O website or call Jason Tharpe, program administrator at Aon, at 202-429-8561. To obtain the discount, let Aon know that you are a member of either the Council or a participating regional association. If you have questions for the Council about the program, contact legal@cof.org.

Additional Reading

D&O Do's and Don'ts: Making the most of your insurance coverage 
by Jane Nober, former special counsel to the Council on Foundations

To apply or not to apply—that's the first question many foundations face when considering D&O insurance. But the questions don't stop there. What types of activities do you disclose in the application process? Do you have any arrangements that might be considered unusual? Once you're covered, what will increase your liability exposure? When do you report a complaint or lawsuit? This legal brief puts D&O insurance in perspective, providing an introduction to how these policies work.

Directors & Officers Liability Insurance and Indemnification, Second Edition
by John A. Edie and Jane C. Nober

Written for nonlawyers, this booklet provides easy-to-understand descriptions of liability and D&O insurance. Its question-answer format offers answers to important questions such as: What are the real risks? How can these risks be minimized? What should one look for in a good D&O policy? How much coverage is needed?

*The discount is not yet approved by the insurance commission in the following states: Alaska, Louisana, New York, and Vermont.