Liability at the leadership level: Directors and officers insurance
Serving on a nonprofit board today means potentially carrying more than strategic responsibility, it can increasingly mean carrying personal risk.
In areas such as healthcare, higher education, and philanthropy, board members are arguably navigating a climate of rising complexity, heightened public scrutiny, and converging operational pressures that can expose individuals to legal, reputational, and financial jeopardy.
What once may have been seen as a mission-aligned leadership role now requires navigating a landscape shaped by factors such as fiduciary accountability, cybersecurity threats, governance gaps, and regulatory demands. These risks aren’t hypothetical; they are increasingly the basis for claims, investigations, and direct challenges to individual directors.
This shift is increasingly evident in healthcare and higher education, where board members are contending with risks that often evolve faster than internal governance frameworks can accommodate. Insurance can play a critical role in helping boards meet these challenges, potentially offering financial protection and the confidence and clarity needed to govern effectively for the long term.
Our latest paper explores the key areas where risk is rising and examines how insurance, alongside robust governance practices, can help boards respond.
Key board member challenges include:
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Managing personal liability
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Gaps and structural issues in governance
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Personal security concerns
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Organizational challenges that reflect back on the board
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Sector-specific challenges
