Directors and Officer's Insurance

The Maryland Nonprofits Directors & Officers (D&O) Liability Insurance Program features insurance provided by Executive Risk Indemnity and is being sold through Gorges & Company, Incorporated. Coverage is only available to qualified 501 (c) nonprofit members of Maryland Nonprofits.

THE MARYLAND NONPROFITS D & O PROGRAM

Standard Coverage: The Maryland Nonprofits D&O Program provides limits beginning at $1 million and deductibles as low as $1,000 for premiums starting at $1000. The plan has been carefully reviewed to assure that it contains the best features available in the D&O market. Special features include:

• Coverage for Staff, Volunteers, and Committee Members:  Many D&O policies only provide coverage for the Directors and Officers.  But the Maryland Nonprofits D&O Program also provides coverage for all employees, volunteers, and committee members working for your organization.

• Coverage for Your Organization:  Many D&O policies only provide coverage for individual people, and don't provide any coverage for your organization. The Maryland Nonprofits D&O Program also provides Association Coverage ("entity" coverage) to protect your organization. Coverage is provided for claims brought against your organization. This coverage may not be available under your general liability policy or under a traditional D&O policy.
  
  
• Coverage for Employment Practices:  Many D&O policies provide no coverage for employment discrimination, wrongful termination or other claims involving your employment practices. Yet these are the most likely subjects raised in suits against your organization and your board. The Maryland Nonprofits D&O Program specifically covers employment practices.

• Compatibility with Maryland's Charitable Immunity and Volunteer Immunity Laws:  The Maryland Nonprofits D&O Program is designed to dovetail with, and is priced to reflect, the immunity from liability which is available under Maryland law to nonprofit organizations, their board members, staff and volunteers.  At Maryland Nonprofits, we continually monitor laws and court decisions in this area and will inform Executive Risk Indemnity of changes needed to assure that this policy is consistent with those laws.

The Executive Risk Indemnity (ERI) nonprofit policy is issued on an admitted basis in Maryland. Many other D&O policies are written as surplus line insurance by "non-licensed companies," or by "risk retention groups," and are not subject to the same level of regulatory scrutiny. Policies issued by unauthorized companies or risk retention groups are not protected by the Property and Casualty Guarantee Corporation.

If you have more questions, please refer to Frequently Asked Questions About D & O Insurance.

If you are interested, download and complete the application, attaching copies of:

1. the minutes from the four most recent board meetings
2. a copy of the organization's personnel policies
3. the determination letter from the IRS
4. the most recent audit or IRS Form 990
5. and a copy of the front page of your current D & O insurance policy

Please give a written explanation for any materials not provided.

All materials are to be forwarded to:

Maryland Nonprofits

190 W. Ostend Street

Baltimore, Maryland 21230.

We will contact you for more information or notify you of the application's approval and a start date. All invoicing will be done by Gorges & Company, Inc.

If you have additional questions or would like more information, please contact Nancy Hall at Maryland Nonprofits, 410-727-6367 or 800-273-6367 ext. 11, or via e-mail at nhall@mdnonprofit.org.

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