Directors' and Officers' Liability Insurance

Coverage can be bound the date after we receive a completed enrollment form and the appropriate premium. Please allow adequate time for us to process your enrollment form and issue certificates.

No. You will receive a certificate of insurance as proof of coverage. By applying for this insurance, you are applying for membership in the Sports, Leisure and Entertainment Risk Purchasing Group (RPG), a group formed and operating pursuant to the Liability Risk Retention Act of 1986 (15 USC 3901 et seq.). Coverage is offered exclusively through the Sports, Leisure and Entertainment Risk Purchasing Group (RPG). The RPG receives a master policy from the insurance company. Submission of this enrollment form confirms your desire to receive coverage through the RPG. Each member receives their own certificate of insurance as evidence of coverage. The limits of insurance apply individually to each insured member organization - there are no shared limits of liability with any other members. For a copy of the RPG master policy, please submit your request in writing to: K&K Insurance Group, In., PO Box 2338, Fort Wayne, IN, 46801-2338.

Enrollment by telephone is not permitted. You can apply for coverage by completing an enrollment form and submitting it to K&K as directed on the form.

Not for profit organizations and their leaders operate in an environment of increasing scrutiny and oversight. Board members, officers and trustees can be named personally in lawsuits alleging that decisions they made on behalf of the organization caused financial or other harm. These claims can come from a wide range of stakeholders, including donors, members, employees, volunteers, beneficiaries and regulators.

D&O liability coverage responds to claims arising from alleged errors, misstatements, omissions, negligence or breaches of duty committed while carrying out their responsibilities for the organization.

Serving on a not for profit board carries real legal exposure. Even when decisions are made in good faith, leaders may face allegations that they mismanaged funds, failed to follow bylaws, mishandled employment issues, or did not act in the best interests of the organization or its stakeholders. Defending these claims can be costly and time consuming, and personal assets may be at risk if insurance is not in place.

D&O insurance helps not for profits:

• Attract and retain qualified board members and officers who may be reluctant to serve without appropriate protection
• Protect individual directors, officers and trustees when they are named personally in a covered claim
• Help shield the organization’s financial resources by funding defense costs and covered settlements or judgments

While D&O insurance cannot eliminate the possibility of a claim, it is widely viewed as a core element of sound not for profit governance and risk management.

D&O policies for not for profits generally respond to claims alleging a “wrongful act” by an insured person in their capacity as a director, officer, trustee or board/committee member. A wrongful act can include an actual or alleged:

• Error or oversight
• Misstatement or misleading statement
• Neglect or breach of duty
• Omission or other act in the course of managing the organization

Depending on the policy, coverage may help pay:

• Legal defense costs when the not for profit or its leaders are sued in connection with their management decisions
• Settlements or court judgments, where insurable by law, arising out of covered claims

Typical claimants may include donors, members, employees, volunteers, beneficiaries, competitors or government agencies. Policy terms, conditions and exclusions vary, so it’s important for not for profits to review the specific coverage details with their insurance professional.

General liability insurance is designed to address bodily injury and property damage claims, such as a spectator getting hurt at a game or damage to a rented facility. Directors and officers (D&O) liability insurance protects a different kind of risk: claims arising from decisions made by your board or leadership.

For not‑for‑profit sports and recreation organizations, D&O coverage can help protect board members, officers, and sometimes the organization itself against allegations such as mismanagement of funds, failure to follow bylaws, wrongful termination or discrimination (where eligible), or decisions that donors, members, or partners claim caused a financial loss. Without D&O coverage, individual board members may have their personal assets at risk if they are named in a lawsuit related to how the organization is governed, even when they are serving as volunteers.

Yes. Even when they are unpaid volunteers, board members and officers can still be personally named in a lawsuit brought against a not‑for‑profit sports or recreation organization. Common examples include disputes over membership decisions, allocation of league funds, hiring or firing staff, rule enforcement, or how the organization responds to complaints or grievances. Directors and officers liability insurance is designed to help provide legal defense and, if applicable under the policy, settlement or judgment costs for covered claims. 

Even small, community‑based leagues and recreation groups make decisions that can have financial and reputational impact: setting registration fees, approving budgets, handling sponsorship funds, deciding which teams or programs to support, and managing coach or volunteer disputes.

A disagreement over finances, denied membership, cancellation of a program, or a controversial board decision can lead to allegations of mismanagement or unfair treatment, sometimes from members, parents, staff, donors, or vendors. Directors and officers liability insurance helps protect the leadership team and the organization when these kinds of governance‑related disputes become formal claims. For many not‑for‑profit sports and recreation organizations, D&O insurance is a relatively affordable way to help safeguard the people who keep the organization running and to support long‑term stability and trust in how the group is managed.