From the Nonprofit Coordinating Committee of New York (NPCC).

NPCC's D&O Insurance

The premium for NPCC’s Directors’ and Officers’ Liability Insurance Program has, in most cases, been lowered to $725 (for one year of coverage) from $750.  In addition, three years of coverage, prepaid, has been reduced to $1,595 from $1,750 (which works out to just over $531 per year). (September, 1999).

The Self Insured Retention (somewhat akin to a deductible) is $100 per board member, with a $1000 cap. If a lawsuit was brought against the organization, the S.I.R. is based on the organization's assets, and is between $1,500 up to $5,000. 

The only limitation to the NPCC program is that the policy is underwritten on a group basis with an aggregate limit of liability (cap) of $25 million for the first $1 million layer and up to $45 million if limits in excess of $1 million are purchased. If, for example, an organization had a claim after the full $25 million had been paid out, that nonprofit would have no coverage unless it had purchased an additional layer of coverage. However, representatives from Frank Crystal Financial Services note that claims have been virtually non-existent during the past five years that they have administered nonprofit D&O insurance coverage for NPCC members. The likelihood of the aggregate being depleted, though not impossible, is certainly improbable. NPCC has prepared a comprehensive memo on this aspect of the policy. To request a copy call Tim Legg at NPCC at 212/502-4191, extension 30.

Any 501(c)(3) organization in good standing as an NPCC member is eligible to enroll, regardless of age or size of the organization. There is no limit to the number of NPCC members who can enroll.

If you would like more information about the D&O plan contact Ken Liebman at Frank Crystal Financial Services at 212/344-2444 or by email. He will be happy to discuss the details with you and send you a copy of the plan. Or contact Marcia Brown at NPCC at 212/502-4191.


Copyright 1999-2000 Nonprofit Coordinating Committee of New York